The UK Betting and Gaming Council (BGC) released a new study that shows the major issue of black market gambling in the region. [Image: Shutterstock.com]

Worrying figures

The UK Betting and Gaming Council (BGC) has released a new study claiming that as many as 1.5 million people in the UK spend as much as £4.3bn ($5.7bn) gambling illegally every year.

The industry body commissioned Frontier Economics to carry out the research, and the resulting findings are the first significant look at the prevalence of the black market since the release of the government white paper on gambling legislation in April 2023.

government loses out on as much as £335m ($445m) over a five-year period

The report highlights the aggressive marketing tactics from offshore operators targeting people in the UK. Estimates suggest the resulting outflow of money will cost the government as much as £335m ($445m) over a five-year period if no changes are made.

A major issue

As these platforms don’t have to adhere to the UK regulators’ rules, they incentivize people to sign up with hefty welcome bonuses, anonymous gameplay, and no restrictive payment measures. These operators can evade sanctions by rebranding or making new identities.

54% of people were not even aware the platform they were using was not legal

The report says that over one in five people in the 18 to 24-year-old age range use black market platforms and that 54% of people were not even aware the platform they were using was not legal in the UK.

It also found that some overseas operators deliberately go after people who excluded themselves from all UK Gambling Commission-licensed gambling sites through GAMSTOP.

While online gambling makes up the bulk of the illegal expenditure, with about £2.7bn ($3.6bn) of an allocation, land-based operations also contribute significantly, with £1.6bn ($2.1bn) spent at illegal facilities across the region.

Change is necessary

Talking about the new research, BGC Chief Executive Grainne Hurst said that it “exposes the unnerving true scale of the growing, unsafe, unregulated gambling black market.” Hurst said that illegal operators don’t care about the safety of players, and they don’t want to help fund the government or sporting bodies that benefit from gambling tax money.

Studies in other European countries with strict gambling laws show a larger proportion of black market gambling, with 66% of all bets in Norway going to illicit operators.

She believes that the regulator and government are “sleepwalking” into this major issue and that more needs to be done. She pointed out that stricter affordability checks, and more bans on advertising, will only drive more people to these unregulated sites.