Millions of UK Gamblers Continue to Engage with Black Market Operators

A groundbreaking study by Frontier Economics, commissioned by the Betting and Gaming Council (BGC), revealed that 1.5 million Brits are wagering up to an estimated £4.3 billion annually on illegal gambling platforms. This report is the first high-profile investigation into the black market since the UK government’s White Paper on gambling reform, revealing the increasing threat unregulated operators pose in the UK.

BGC Warns Stricter Regulations Can Be Counterproductive

The study found that illegal gambling operators are aggressively targeting UK consumers, subverting regulatory safeguards, and depriving both the government and the sports sector of significant revenues. The most concerning finding is how mainstream black-market sites have become among younger bettors: more than one in five people aged 18-24 years who gamble regularly now use unregulated platforms, accessing them via online messaging apps.

In total, £2.7 billion was gambled on illegal online platforms, spanning games like poker and sports betting. An additional £1.6 billion was further wagered at in-person gambling dens across the UK. BGC chief executive Grainne Hurst said she was deeply concerned by the findings and advocated for decisive action against this rising threat.

Millions of customers are being driven into the arms of pernicious black market operators. The government and the regulator risk sleepwalking into this issue.

Grainne Hurst, BGC CEO

The BGC warns that excessively restrictive regulations risk the adverse consequence of driving additional players to these unsafe markets. Where gambling regulations have been most punitive, such as in Norway, more than 66% of total bets have gone to black market gambling. Meanwhile, high gambling taxes in Bulgaria and Portugal have forced 47% and 31% of their respective markets toward unregulated operators.

The Black Market Remains a Pressing Concern

One key driver of the black market’s growth is its ability to offer services that regulated operators cannot like bigger offers and anonymity. VPNs, which mask the location of users, are being utilized to access illegal gambling sites based abroad, rendering enforcement tricky. A worrying number of bettors also “multi-home,” which involves using both legal and illegal sites.

The BGC has called for greater collaboration with technology companies to close off access routes to these sites to ensure they cannot spread. However, Andrew Leicester, associate director at Frontier Economics, underscored the importance of balanced regulations to help direct customers to the regulated sector, which offers significantly enhanced consumer protections.

Efforts to make gambling safer are important, but must avoid the risk of pushing more players into unregulated providers who do not need to comply with regulations around safer play.

Andrew Leicester, Frontier Economics associate director

In the context of public safety, the NHS Health Survey for England estimates that just 0.4% of the population are problem gamblers, showing that the majority of the 22.5 million Brits who gamble each month do so responsibly. Nonetheless, the growing threat from illegal operators remains a significant concern for industry stakeholders and regulators.