Illegal gambling in the UK: BGC warns over £10bn black market
Illegal gambling in the United Kingdom is again under scrutiny, as policymakers and operators debate its impact. The Betting and Gaming Council estimates that approximately 1.5 million UK consumers now use unlicensed platforms, generating around £10 billion each year.
These figures underscore that illegal gambling poses a growing risk to consumer protection and the stability of the regulated market. With this heightened risk, attention is now turning to the changing regulatory landscape as key stakeholders seek effective responses.
New regulations under scrutiny: risk of migration to the black market
The discussion, moderated by Gloria De Piero and Liam Halligan, centred on forthcoming regulatory measures in the UK. The session opened with remarks from the Gambling Minister, followed by a discussion with Grainne Hurst, Chief Executive of the Betting and Gaming Council. The proposed Financial Risk Assessments (FRAs) aim to strengthen oversight of gambling behaviour and mitigate financial harm-related risks.
The Betting and Gaming Council warns that requirements to share personal financial data could be perceived as intrusive, highlighting concerns that such measures could drive consumers towards offshore, unregulated operators.
The Gambling Commission states that FRAs are in a pilot phase, designed as frictionless checks using credit data rather than direct bank access, highlighting a clear divergence between industry concerns and the regulator’s approach.
Government stance: public finances and regulatory responsibility
Addressing the assembly, the UK’s Gambling Minister, Baroness Fiona Twycross, acknowledged the challenges facing the industry following the fiscal changes announced in November’s Budget.
Twycross noted that the new measures will have a significant impact on businesses and employment, as operators face higher taxes and stricter rules. The government argues these changes are necessary to support public finances, with anticipated revenues exceeding £1 billion per year. Twycross emphasised the threat posed by illegal gambling to vulnerable consumers and the regulated system’s credibility.
Strengthening enforcement: funding and anti-illegal task force
Among the key measures announced is an additional £26 million in funding for the Gambling Commission over the next three years, to strengthen oversight, intensify investigations and combat illegal platforms.
In parallel, the government has established a dedicated task force to address unlicensed gambling. This initiative introduces a more integrated approach between the public and private sectors.
The task force will include major technology and payments companies such as Google, Mastercard, TikTok and Visa, as well as law enforcement agencies and advertising bodies. Its mandate is to coordinate efforts across payments, advertising, and industry cooperation to disrupt and block unauthorised activity.
This multi-stakeholder strategy recognises that addressing illegal gambling requires coordinated intervention across the digital ecosystem, not relying solely on regulatory enforcement.
Sports sponsorship under regulatory review
Another area under review is the relationship between gambling and sport. The government has launched a consultation to assess a potential ban on sports sponsorships by unlicensed operators, a move that could also affect Premier League clubs.
The objective is to prevent unregulated brands from gaining exposure through major sporting events, thereby bypassing existing rules and reaching broad audiences.
Industry concerns: a potential policy contradiction
Despite enhanced enforcement, industry representatives caution that higher taxes and stricter regulations could undermine licensed operators’ competitiveness, potentially driving more consumers to the unregulated market even as the government seeks to reduce illegal gambling.
The Betting and Gaming Council maintains that stricter rules and a declining user experience risk are driving consumers to unregulated operators.
A defining challenge for the future of iGaming
The UK’s approach to new iGaming regulations will test how operators balance consumer protection, fiscal goals, and market competitiveness. Policies will be judged on reducing illegal gambling while keeping the regulated sector viable. Estimates from the Betting and Gaming Council emphasise the policy challenge ahead: ensuring regulations effectively prevent growth in unregulated gambling.
This article was first published in Italian on 30 March 2026.
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