The Betting and Gaming Council (BGC) has launched a major new five-point plan to crack down on the growing illegal gambling black market, warning that failure to act will expose consumers to fraud, criminality and gambling-related harm.

The standards body, which represents around 90% of the regulated UK betting and gaming industry, is calling on ministers, regulators, technology companies and financial institutions to work together to shut down illegal operators targeting British consumers.

The BGC’s intervention comes amid growing evidence that the illegal gambling market is expanding at an alarming rate. Independent forecasts by H2 Gambling Capital estimate that black market gambling stakes could rise from £17bn in 2025 to more than £33bn by 2028, with almost one in every five pounds staked online potentially being placed with illegal operators within three years.

These operators offer none of the protections required in the regulated sector, pay no UK tax, contribute nothing to British sport and expose consumers to significantly greater risks of fraud, financial crime and gambling-related harm.

Every customer lost to the black market is a customer gambling without safeguards, without oversight and without the protections that exist within Britain’s highly regulated gambling market.

The BGC warned that allowing the black market to continue to grow would undermine years of progress in raising standards and protecting vulnerable consumers.

The BGC’s Five-Point Plan

1. Shut down illegal gambling advertising

Make social media companies responsible for removing illegal gambling content and advertisements, preventing criminal operators from reaching British consumers and protecting children and vulnerable groups from exposure.

Illegal operators increasingly rely on social media, search engines and online advertising to attract customers. The scale of the problem is growing rapidly. Analysis by WARC found that illegal operators now account for almost half of all UK gambling advertising spend and are projected to overtake licensed operators by 2028. Stronger action is needed to ensure illegal gambling advertisements are removed quickly, preventing criminal operators from targeting British consumers and reducing exposure among children and vulnerable people.

2. Block illegal gambling websites

Give the Gambling Commission stronger powers to block illegal gambling websites, remove unlicensed gambling apps and disrupt criminal operators targeting British consumers.

Illegal operators can rapidly create new websites and applications designed to mimic legitimate gambling brands, making enforcement increasingly difficult. The growth of the black market underlines the need for stronger powers. Analysis by H2 Gambling Capital shows the amount staked with illegal operators has surged to £16.6bn, more than tripling since 2019 and doubling in the last two years alone. Regulators need the ability to remove illegal sites more quickly and make it harder for criminal operators to reach consumers.

3. Cut off the money

Prevent payment providers from facilitating transactions linked to illegal gambling operators and disrupt the financial networks that sustain the black market.

Illegal gambling businesses depend on the ability to move money into and out of customer accounts. H2 Gambling Capital analysis found black market operator profits and stakes have both doubled between 2023 and 2025, demonstrating the growing financial strength of illegal operators. Stopping payments reaching unlicensed operators would strike directly at the business model that allows the black market to flourish and make it significantly harder for criminal enterprises to operate.

4. Hold enablers accountable

Introduce meaningful penalties for companies that knowingly provide advertising, payment processing, hosting or other services to illegal gambling businesses.

Illegal operators do not act alone. A network of companies often facilitates advertising, payments and online services, helping criminal operators reach British consumers. At the same time, Alvarez & Marsal analysis shows advertising compliance among licensed operators is exceptionally high, with Advertising Standards Authority rulings relating to fewer than 0.02% of gambling adverts. While regulated businesses comply with strict rules, illegal operators increasingly use influencers, search engines and AI-generated content to target consumers outside the regulatory framework. Those who knowingly enable such activity should face meaningful consequences.

5. Get tougher on illegal operators

Create tougher criminal sanctions against those who operate, support or profit from illegal gambling operations targeting UK consumers.

The penalties for operating illegal gambling businesses should reflect the significant consumer harm they can cause. Tougher sanctions would act as a deterrent while providing law enforcement with stronger tools to disrupt organised criminal activity. The urgency is clear: H2 Gambling Capital forecasts that stakes with illegal operators will rise from £17bn in 2025 to more than £33bn by 2028, meaning almost one in five online betting and gaming stakes could be placed with the black market within three years if action is not taken.

Grainne Hurst, Chief Executive of the Betting and Gaming Council, said: “The black market is growing fast, becoming more visible and attracting billions of pounds in stakes from British consumers.

“These forecasts are a wake-up call for everyone involved in protecting consumers. If current trends continue, black market gambling stakes could exceed £33bn within three years, with almost one in every five pounds staked online potentially ending up with illegal operators.

“That should concern anyone who cares about consumer protection and reducing gambling-related harm.

“Illegal gambling operators offer none of the protections required in the regulated sector. They do not conduct safer gambling interventions, they do not carry out identity checks, they do not verify age properly and they provide no route to redress when things go wrong.

“Every customer who is driven into the black market loses those protections.

“The evidence is already clear. Illegal operators are targeting British consumers online, advertising through social media, processing payments through legitimate financial systems and exploiting gaps in enforcement.

“If policymakers fail to tackle this growing threat, more gambling will take place in environments with no safeguards, no oversight and no consumer protections.

“This is not simply an issue for the regulated industry. It is a consumer protection issue, a public health issue and a criminal justice issue.

“Government, regulators, technology companies and payment providers must work together to stop illegal operators reaching British consumers, cut off their funding and hold those who facilitate their activities accountable.

“Our five-point plan sets out practical, targeted measures that would strike at the heart of the black market and better protect consumers.

“The BGC said the issue has become increasingly urgent as illegal operators become more sophisticated, using social media platforms, affiliate networks, search engines and encrypted communications to attract customers away from the regulated market.

The growth forecast for the black market demonstrates that current efforts are failing to keep pace with increasingly aggressive illegal operators who are targeting British consumers online while operating entirely outside UK regulation.

The standards body warned that any policy which unintentionally pushes consumers towards unlicensed operators risks strengthening criminal businesses, increasing gambling-related harm and undermining the significant investment made in safer gambling protections by the regulated sector.

As more consumers are exposed to illegal gambling products, they lose access to the safer gambling tools, affordability protections, age-verification checks and dispute resolution mechanisms that exist in the regulated market. The BGC warned that continued growth in the black market will increase gambling-related harm and undermine efforts to raise standards across the sector.

While the creation of the Government’s Black Market Taskforce was a welcome first step, more action is needed. The BGC is calling for the work of the Taskforce to be strengthened and translated into concrete action, ensuring regulators, law enforcement agencies, payment providers and technology companies work together to disrupt illegal operators and protect consumers.

Protecting consumers means keeping them within the highly regulated market, where robust safeguards, safer gambling tools and effective oversight are already in place.

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