A new study by Frontier Economics has revealed that £4.3 billion ($5.7 billion) is staked annually on black market gambling in the UK, with 1.5 million Brits engaged in the illicit activity. The report, commissioned by the Betting and Gaming Council (BGC), highlights the growing threat posed by unregulated gambling operators, both online and through illegal venues.
According to the study, £2.7 billion is gambled on illegal online sites, while £1.6 billion is staked in underground gambling dens. Young people are a key target for black market operators, with one in five 18-24-year-olds who gamble having used such sites. These operators also aggressively advertise to vulnerable groups, the report says, including those who have self-excluded from regulated platforms.
The report warns that the black market could cost the UK Treasury up to £335 million over the next five years, a loss the study projects could otherwise fund 1,700 nurses or provide 1.2 million GP consultations annually.
BGC members, who operate under regulations set by the UK Gambling Commission, have expressed concerns over the rising threat of these illegal operators, which they complain pay no taxes and evade player protection rules.
The report also points to the increasing accessibility of black market sites, facilitated by virtual private networks (VPNs) and social media. Frontier Economics warned that overly strict regulations on the legal gambling industry could inadvertently drive more players to unregulated operators.
“This report provides timely new evidence on the scale of the black market. Efforts to make gambling safer are important, but must avoid the risk of simply pushing more players and spend into unregulated providers who do not need to comply with regulations around safer play,” said Andrew Leicester, Associate Director at Frontier Economics.
The BGC urged the government to adopt balanced regulations and stable taxation to combat the black market. BGC CEO Grainne Hurst cautioned that simply increasing enforcement efforts would not be enough to address the issue.
“The government and the regulator risk sleepwalking into this issue. Simply giving the GC more powers and more resources to tackle the black market won’t, in itself, work. Enforcement is only part of the solution. The fact is onerous and ill-judged regulations drive customers from the regulated sector to the unsafe, unregulated gambling black market,” said Hurst.
Hurst further warned that proposals by "anti-gambling prohibitionists" like advertising bans or blanket, low-level affordability checks will not protect customers, instead giving "another leg up to unscrupulous black market operators, the last thing anyone wants."
The report comes as the UK continues to debate its approach to gambling regulations following the government’s White Paper on gambling reform.
https://www.yogonet.com/international/news/2024/09/19/79233--57-billion-staked-on-uk-black-market-gambling-new-bgccommissioned-report-reveals