UK Gambling Industry Calls for Stronger Action Against Illegal Betting Market

The Betting and Gaming Council (BGC) has unveiled a new strategy aimed at combating the growth of illegal gambling in the United Kingdom, arguing that a coordinated response from government authorities, regulators, technology platforms and financial institutions is necessary to protect consumers and the licensed market.

Representing what it says is around 90 per cent of Britain's regulated betting and gaming industry, the trade body believes that unlicensed operators are expanding rapidly and exposing customers to greater risks, including fraud, criminal activity and gambling-related harm. According to the organisation, stronger intervention is needed to prevent illegal businesses from attracting British players.

The BGC's proposal is built around five principal measures. These include removing illegal gambling advertising, blocking access to unlawful gambling websites, restricting payment flows to black market operators, imposing tougher penalties on businesses that support illegal operators and introducing stronger criminal sanctions for those involved in running or profiting from unlicensed gambling services.

A key element of the plan focuses on online advertising. The association argues that social media platforms and other technology companies should take greater responsibility for identifying and removing content that promotes illegal gambling services. The group says that unlicensed operators are increasingly relying on digital marketing channels, including social media, search engines and online advertising, to recruit customers.

The BGC points to analysis from WARC indicating that illegal operators now account for almost half of all gambling advertising expenditure in the UK and could surpass licensed businesses by 2028 if current trends continue. The organisation believes that faster removal of unlawful advertising would make it more difficult for criminal operators to target British consumers, particularly children and vulnerable individuals.

The trade body is also seeking stronger powers for the Gambling Commission to take action against illegal websites and applications. It wants regulators to be able to block unlicensed gambling sites more quickly, remove unlawful mobile apps and disrupt criminal networks operating outside the legal framework.

To support its concerns, the BGC cites research from H2 Gambling Capital suggesting that the amount wagered with illegal operators in the UK has increased to £16.6bn, more than three times the level recorded in 2019. According to the association, giving regulators additional enforcement tools would make it harder for illegal businesses to reach customers.

The organisation is also advocating measures aimed at the financial infrastructure that supports the black market. Although it has not outlined a detailed mechanism, it argues that payment providers should be prevented from facilitating transactions linked to illegal gambling operations, thereby weakening the financial networks that allow those businesses to function.

Another recommendation is the introduction of significant penalties for companies that knowingly assist unlicensed gambling operators. The BGC argues that many illegal businesses depend on a wider network of service providers offering advertising, payment processing, hosting and other support functions.

The association contrasts this with the performance of licensed operators, pointing to analysis by Alvarez & Marsal which found a very high level of advertising compliance within the regulated sector, with Advertising Standards Authority rulings affecting only a tiny proportion of gambling advertisements. It argues that while legal operators are required to follow strict rules, illegal businesses increasingly exploit influencers, search engines and artificial intelligence-generated content to attract customers outside the regulatory system.

The fifth proposal centres on strengthening criminal sanctions against individuals and organisations that operate, facilitate or benefit from illegal gambling activities aimed at UK consumers. The BGC believes that penalties should better reflect the level of consumer harm associated with such operations and provide law enforcement agencies with stronger powers to disrupt organised criminal groups.

The organisation also warns that the issue is becoming increasingly urgent. Forecasts from H2 Gambling Capital suggest that stakes placed with illegal operators could rise from around £17bn in 2025 to more than £33bn by 2028. If those projections prove accurate, nearly one-fifth of all online betting and gaming stakes could be directed to the black market within the next three years.

While welcoming the government's decision to establish an Illegal Gambling Taskforce, the BGC maintains that the initiative should be accompanied by more concrete measures. In its view, regulators, law enforcement bodies, payment providers and technology companies must work together to disrupt illegal operators, cut off their funding channels and improve consumer protection.

The association warns that continued expansion of the black market could undermine years of progress made by the regulated sector in improving standards and safeguarding vulnerable customers.

Chief Executive Grainne Hurst said the latest forecasts should serve as a warning about the growing scale of illegal gambling activity. She argued that black market operators do not provide the consumer protections required of licensed businesses, such as safer gambling measures, identity verification, age checks and accessible complaint procedures. According to Hurst, every customer who migrates to the illegal market loses those safeguards.

She also said that unlicensed operators are increasingly reaching British consumers through online advertising, social media platforms and legitimate financial systems while taking advantage of weaknesses in enforcement. Hurst argued that failure to address the issue would result in more gambling taking place in unregulated environments lacking oversight and consumer protections, making the challenge not only an industry concern but also an issue of public protection, public health and criminal justice.

The BGC's position is that only a coordinated effort involving government, regulators, technology companies and payment providers can effectively prevent illegal operators from reaching British consumers, disrupt their financial networks and hold those who enable their activities accountable.

By fLEXI tEAM