Surge in Illegal Betting on British Racing Raises Regulatory Concerns
A new study by the International Federation of Horseracing Authorities (IFHA) has revealed a significant increase in traffic to non-UK-licensed betting sites offering wagers on British racing. The findings, which indicate a 522% rise in unique visits over four years, have raised alarms within the British Horseracing Authority (BHA), which warns of potential risks to consumers and lost revenues for the industry.
Rapid Growth of the Unlicensed Market
According to the IFHA report, between 2021 and 2024, the number of unique visits to 22 leading unlicensed betting platforms surged dramatically. In the first nine months of 2024 alone, these sites recorded over 600,000 visits per month. Comparatively, traffic to ten UK-licensed betting sites offering British racing grew by just 49% over the same period.
BHA Acting CEO Brant Dunshea emphasized the dangers associated with this shift, stating that British racing has repeatedly cautioned against the unintended consequences of regulatory decisions. He noted that each customer leaving the legal market faces increased risks due to weaker consumer protections while also contributing to a financial shortfall in the regulated racing ecosystem.
“This study certainly demonstrates that very concerning threat becoming reality. For every racing customer that leaves the legal market for the illegal one, they are putting themselves at increased risk with lessened consumer rights and protections. Unlicensed operators also make no financial contribution to the ecosystem of British racing or the Exchequer”, Dunshea said.
Economic Implications and Industry Response
The rise in unlicensed betting comes at a time when the British racing sector has faced substantial losses, with remote betting turnover decreasing by £1.6bn in just two years. The trend has sparked concerns that stricter gambling regulations may be inadvertently pushing bettors toward unauthorized operators.
While acknowledging the UK Gambling Commission’s recent enforcement efforts, the BHA emphasized the need for a balanced regulatory framework that does not discourage safe betting practices. The organization plans to share the study’s findings with the UK Government to advocate for policies that keep betting activity within the regulated market.
“The study serves as a further reminder of why it’s important for gambling regulations to be both balanced and proportionate, with those who are betting safely on racing allowed to do so without interruption,” Dunshea added.
Black Market Betting and Broader Risks
Beyond consumer protection concerns, the expansion of illegal betting markets also raises potential links to criminal activities. At the recent Gambling Anti-Money Laundering Group (GAMLG) training event, industry expert Grainne Hurst highlighted how black market gambling is being exploited to finance illicit operations.
“As a sector, we should lead the way in making certain our products are not hijacked and misused by those engaged in illegal activity. While we work hard in this space, we are also acutely aware of how black market gambling is already being used by those criminal elements to raise funds that support their illegal business empires”, Hurst stated.
While the IFHA study does not explicitly link recent UK regulatory measures to the rise in illegal betting, the trend mirrors patterns observed in other jurisdictions where increased restrictions have driven players to offshore markets. The BHA remains firm in its position that policy changes should consider the long-term sustainability of the industry while ensuring bettors remain within the regulated framework.