BGC Reports £4.3bn Annual Stakes in UK Black Market Gambling

UK Black Market Gambling Surges to £4.3bn Annually, BGC Study Warns

A staggering £4.3bn is wagered each year on the UK’s black market, according to a new Betting and Gaming Council (BGC) study. Conducted by Frontier Economics, this eye-opening report is the first in-depth investigation into illegal gambling in the UK since the government’s April 2023 white paper on gambling reform. As the Labour government ponders further steps in gambling regulations, industry insiders warn that over-regulation could unintentionally fuel the black market.

The report underscores how the UK gambling market is increasingly vulnerable to unsafe, unregulated operators. BGC’s new CEO, Grainne Hurst, commented, “This shocking report exposes the unnerving true scale of the growing, unsafe, unregulated gambling black market. The government and regulator must recognize that enforcement alone won’t curb the issue.” According to Hurst, overly restrictive measures such as blanket affordability checks or advertising bans could worsen the problem by pushing bettors towards illegal operators.

The report sheds light on the extent of black market activity, with £2.7bn attributed to online gambling and £1.6bn from illegal land-based venues. These figures represent 2.1% of the £128bn wagered annually in the UK through regulated channels, a percentage that could grow as players seek alternatives to avoid more stringent rules. This not only jeopardizes consumer safety but also costs the UK treasury an estimated £335m in missed revenue over the next five years.

Alarmingly, the report reveals that 20% of 18-24 year-olds in the UK already gamble on the black market or through messaging apps. With illegal operators targeting vulnerable self-excluded players using terms like “not on GAMSTOP,” the risks to bettors are only increasing. In contrast, countries with more restrictive gambling frameworks, like Norway, have seen black market gambling account for as much as 66% of total gambling spend, demonstrating the potential consequences of over-regulation.

Report author Andrew Leicester, associate director at Frontier Economics, stressed the urgency of balancing safety with regulation: “Efforts to make gambling safer are crucial, but they must avoid driving players toward unregulated providers who don’t comply with safer play regulations.”

As the UK government continues its pursuit of gambling reforms, the BGC’s findings offer a stark reminder that well-intended policies can sometimes have unintended consequences. To maintain consumer protection and avoid losing ground to the black market, policymakers must strike a balance between safety and accessibility. Without careful consideration, the growth of illegal gambling operations could undermine the very protections these reforms aim to achieve.