UKGC to Tighten Control Over Illegal Lotteries
- Illegal operators continue to make lotteries, a UKGC report claims
- The regulator is determined to better understand how the black market works
- UKGC says consumer protection remains the top priority for the regulator
Society lotteries in the UK have set new records for the second year in a row, generating more than GBP 1 billion (approximately $1.35 billion) in Gross Gambling Yield (GGY). However, despite the growth of the sector, Ian Angus, the director of policy of the United Kingdom’s Gambling Commission (UKGC), said that the regulator would clamp down on illegal lotteries.
Illegal Lotteries Are Growing in Parallel to Legitimate Ones
According to data from the UKGC’s Gambling Survey for Great Britain (GSGB), society lotteries have become the second most popular form of gambling in the country. Between July and October last year, around 17% of adults, or about 9 million people, participated in a society lottery. This puts the sector ahead of general betting, which attracted 10% of adults, and second only to the National Lottery, which reached 32%.
Despite the sector’s growth, Angus warned that illegal operators continue to present a significant risk to consumers. If left unchecked, they could also damage the reputation of legitimate charitable organisations. In response, the UKGC is increasing enforcement efforts with the support of GBP 26 million (approximately $35 million) in Treasury funding allocated over three years.
According to Angus, the funding will enable the regulator to automate key processes. This includes a better understanding of the structure and activity of the black market and developing Great Britain’s first national risk assessment of illegal gambling. Considering that at the beginning of this year, the UKGC reported 2025 had costly reforms, the new funding would be more than welcomed by the regulator.
Consumer Protection Remains a Priority
Angus also spoke about consumer protection, pointing to the latest GSGB annual report, which found that 2.7% of the adult population scored 8 or higher on the Problem Gambling Severity Index. Although society lotteries are generally considered lower-risk products based on statistical evidence, Angus warned operators not to become complacent. He emphasized that those most vulnerable to gambling-related harm often participate across multiple types of gambling activities.
To help operators meet regulatory requirements, Angus also drew attention to the regulator’s newly introduced “Licence Support” service. After a successful pilot program in 2024, the service officially launched earlier this year, offering operators a dedicated point of contact for technical support, regulatory guidance, and quicker responses to enquiries.In other news regarding the UKGC, the UK High Courtruled in favor of the regulator in a GBP 1.3 billion($1.77 billion) case linked to the awarding of the UK’s National Lottery license to Allwyn.
Stefan covers the sweepstakes industry and reports on the rapid, global expansion of iGaming brands. Leveraging a background in digital marketing, he investigates how social casinos navigate complex gray markets and drive user acquisition. His coverage provides operators with crucial insights into the regulatory nuances fueling the explosive growth of alternative online gaming platforms.