Gamblers in Great Britain are placing an estimated £2.7bn in bets annually on unlicensed gambling websites, according to a recent report by a gambling industry lobby group. The Betting and Gaming Council (BGC) warned that stricter regulations on the licensed gambling sector could push even more people toward these illegal markets.
The popularity of unlicensed gambling operators
The BGC’s study, conducted by Frontier Economics, estimates that 1.5 million Britons are placing bets with unlicensed operators, highlighting how easily accessible these illicit sites are. The report suggests that this underground activity makes up roughly 2% of the £128bn total wagers placed with licensed online gambling companies last year.
However, the BGC emphasized that the £2.7bn figure might be an underestimate, claiming that unlicensed betting could actually amount to £4.3bn if in-person gambling—such as informal bets or poker games among friends, is included.
Grainne Hurst, the BGC’s chief executive, and a former Ladbrokes executive, cautioned that increasing the Gambling Commission’s regulatory powers alone won’t resolve the issue of the hidden gambling market. She argued that stricter regulations could backfire by pushing more bettors towards unregulated platforms.
Hurst criticized advocates for tighter gambling controls, including those backing stricter advertising restrictions and affordability checks—proposals currently under consideration following the release of a government white paper last year. She warned that these measures, if implemented, would drive more gamblers to the black market.
The white paper’s progress has stalled due to the recent change in government, prompting lobbying efforts from various groups, including the BGC, to shape the government’s next move.
While Labour has historically supported gambling industry liberalization, some changes may be on the horizon. Derek Webb, a former professional poker player and a significant financial backer of gambling reform campaigns, has donated £500,000 to Labour since the election was announced.
Labour has yet to define its stance on key issues, such as placing limits on digital slot machine stakes and imposing a £100m mandatory levy on the industry to fund gambling harm research, education, and treatment programs. Both issues have been in limbo since the recent election.
Campaigners have also called on the government to impose stricter controls on gambling advertisements, similar to recent actions taken on pre-watershed junk food ads. However, the BGC and industry operators continue to argue that cracking down on advertising would drive more people to illegal platforms.
Gambling Comission’s response
In response, the Gambling Commission has stated that the industry may be overstating the risks posed by the hidden gambling market. The commission’s specialized hidden-markets unit has been actively working to address unlicensed gambling in Britain, issuing over 750 cease-and-desist orders and removing 50,000 URLs from Google since April.
A government spokesperson reiterated the administration’s commitment to protecting vulnerable individuals from the harmful effects of gambling, while ensuring that regulatory measures remain balanced to avoid exacerbating the issue of illegal gambling markets.
