British horseracing sector worried about surge in unlicensed gambling 

A new study has found that traffic to unregulated gambling sites rose by 522 per cent in four years.

UK.- The British Horseracing Authority (BHA) has raised concerns about the extent of black market gambling in the UK after a new study by the International Federation of Horseracing Authorities (IFHA) found a steep increase in traffic to sites not licensed by the British Gambling Commission. The study indicated that from 2021 to 2024 there was a 522 per cent rise in the number of unique visits to 22 of the most visited non-licensed sites offering markets on British racing.

The report was carried out by James Porteous, head of research for the IFHA’s Council on Anti-Illegal Betting and Related Crime. It found that the figure for unique visits per month for the first nine months of 2024 reached 600,000. The total number of visits to unlicensed sites studied increased by 131 per cent in four years, reaching 1.3 million visits per month in 2024. In the same period, the number of visits to 10 licensed British sites rose by just 25 per cent.

The BHA recognised that the scope of the study was limited and does not present the complete picture, but it is concerned that traffic from the UK to unlicensed gambling sites has risen sharply.

BHA acting CEO, Brant Dunshea, said: “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.

“While noting increased enforcement action in recent months by the Commission, we will be sharing these findings with the government and hope it will work with us to encourage bettors to stay in the legal market given this growing leakage.

“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.”

The new study adds to concerns about the finances of the British horse racing sector. In December, the sector called for urgent action after Gambling Commission statistics suggested that online betting on horses had fallen by £3bn over the last two years, a decline of 16.3 per cent before considering inflation.

The industry says the downturn would be around £15bn after inflation is factored in. Betting turnover on horse racing continued to decline last year, with a 9.5 per cent drop. The BHA has been a strong critic of the Gambling Commission’s push for affordability checks.

The BHA concluded: “While no direct causation is drawn in the study between the policy announcements made by the UK government on gambling in recent years and a move to the illegal market, the current trend does echo that seen in other jurisdictions internationally where moves to tighten regulation in the legal market has driven customers away.”

Meanwhile, the BHA is lamenting the death of its former chairman Joe Saumarez Smith. Saumarez Smith joined the BHA’s board in 2014 and became chairman in June 2022. He had planned to leave the position later in the year due to illness but stepped down at the end of January after being diagnosed with leptomeningeal metastases.