A recent study commissioned by the Betting and Gaming Council (BGC) has uncovered that up to £2.7 billion is being wagered on illegal black market gambling sites each year in the UK. The findings suggest that 2.1% of the total £128 billion wagered through regulated online gambling operators is instead flowing into the hands of unlicensed, unregulated platforms.
The research, conducted by Frontier Economics, comes at a time when UK regulators and lawmakers are increasingly focused on strengthening the country’s gambling regulations. This is the first major survey on the illegal gambling market since the government's white paper on gambling reform was released in May 2023.
The Growing Influence of the Black Market
BGC CEO Grainne Hurst expressed alarm at the survey’s results, describing the findings as "shocking" and emphasizing the "unnerving true scale of the growing, unsafe, unregulated gambling black market.” Hurst warned that unless tougher enforcement actions are taken, the UK government risks "sleepwalking" into a situation where illegal gambling flourishes unchecked.
The report found that 5.4% of surveyed gamblers used both regulated and illegal operators, while 0.8% exclusively bet on illegal sites. These activities have significant implications for the UK Treasury, with an estimated loss of £335 million in gambling taxes over the course of a five-year parliamentary term.
Social Media and Bonuses Drive Black Market Engagement
Social media platforms have played a significant role in promoting illegal gambling, with 22% of respondents having seen advertisements for black market operators on various apps. Additionally, 35% of those surveyed cited generous bonuses and free bets as their primary reason for choosing unregulated sites, while others were drawn by the ease of account creation and flexible payment options.
Frontier Economics reported that younger gamblers were particularly vulnerable to the black market's allure. A staggering 38% of 18- to 24-year-olds were able to identify at least one illegal brand, while 16% of this age group admitted to placing bets on these platforms. The prevalence of black market activity among younger generations raises concerns about long-term consumer protection.
The Financial and Social Impact
Beyond the financial losses to the Treasury, the black market poses a broader threat to the regulated gambling ecosystem. Illegal operators often sidestep crucial safeguards, such as self-exclusion measures and responsible gambling tools, leaving consumers exposed to potential harm. These sites also avoid paying taxes that contribute to sports funding and public services.
As the black market continues to expand, it is estimated that £4.7 billion may be wagered annually when including illegal in-person gambling, further compounding the scale of the issue. The report suggests that enforcement alone is not sufficient, and Hurst emphasized the need for balanced regulations that promote a safer, regulated market.
Source:
SHOCK NEW STUDY REVEALS 1.5m BRITS STAKE UP TO £4.3bn ON ILLEGAL GAMBLING BLACK MARKET EACH YEAR, Betting & Gaming Council (BGC), September 19, 2024.
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