Survey Reveals £2.7bn in Annual Black Market Betting in the UK

The BGC’s survey marks the first comprehensive study on the UK black market for online gambling since the government’s white paper released in May 2023. Conducted with over 6,000 gamblers engaged in casino, bingo, and sports betting, the research aimed to uncover how UK bettors access illegal gambling services. The findings indicate a substantial portion of the market remains unregulated and poses significant challenges for authorities.

Financial Implications and Tax Losses

The report highlights that 5.4% of respondents use both regulated and illegal operators, while 0.8% exclusively gamble on unlicensed sites. Combined, these activities result in £2 billion and £695 million staked annually, respectively.

Frontier Economics warns that this could lead to tax losses of up to £335 million over a five-year parliamentary term, underscoring the financial impact of the black market on public revenues.

Awareness of illegal gambling options is notably high, with 15% of gamblers recognizing at least one unlicensed brand. Social media emerges as the primary advertising platform, with 22% of respondents encountering black market ads on various social media applications.

Additionally, sports sponsorships and online adverts account for 13%, while streaming platforms and affiliates contribute 10% and 9%, respectively. Yield Sec, an intelligence platform tracking global black market gambling, found a significant presence of illegal ads during Olympic Games streams, with up to 46% of all illegal streams featuring such promotions.

Younger gamblers are more likely to be aware of and engage with black market operators. The survey shows that 38% of individuals aged 18 to 24 can name an illegal gambling brand, a figure that drops to 3.6% among those aged 75 and above. Similarly, 16% of the youngest age group actively bet on illegal sites, with participation decreasing in older demographics.

The primary incentives for choosing illegal platforms include attractive bonuses and free bets (35%), ease of account setup (32%), and more flexible payment options and better odds (30%).

VPN Use and Black Market Channels

Frontier Economics notes that the true extent of the black market may be underestimated due to the use of less visible and potentially unregulated channels, such as VPNs.

The survey found that 5.8% of respondents use VPNs, while 2.9% rely solely on black market operators and another 2.9% use social media or messaging apps for gambling. These factors complicate accurate measurement and highlight the adaptability of illegal operators in evading regulatory oversight.

BGC CEO Grainne Hurst described the survey results as “shocking,” emphasizing the urgent need for tougher enforcement measures against the black market. Hurst criticized the current approach, stating:

“Simply giving the GC [UK Gambling Commission] more powers and more resources to tackle the black market won’t in itself work. Enforcement is only part of the solution.” She advocated for a comprehensive strategy that goes beyond increased regulatory powers to effectively address the growing unregulated gambling sector.