UK betting and gaming operators propose five-point to tackle black market
The Betting and Gaming Council has outlined five steps it believes are needed to protect the regulated British gambling sector.
UK.- The Betting and Gaming Council (BGC), the trade association representing the licensed gambling sector in Britain, has presented a new five-point plan proposing measures against the black market. The plan outlines the steps the group believes must be taken to protect regulated gambling from illegal competition.
The industry group, which says it represents around 90 per cent of the regulated UK betting and gaming industry, is calling on lawmakers, regulators, technology companies and financial institutions to work together to shut down illegal gambling operations targeting British consumers. It warns that a failure to act will expose consumers to fraud, criminality and gambling-related harm.
The five measures proposed are: action to shut down illegal gambling advertising, blocks on illegal gambling websites, blocks on payments, “meaningful penalties” against enablers and criminal sanctions for operators.
The BGC’s Five-Point Plan against illegal gambling
On the first measure, the BGC says social media companies should be made responsible for removing illegal gambling content and advertisements.
“Illegal operators increasingly rely on social media, search engines and online advertising to attract customers,” the BGC warned. “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”.
It also wants the Gambling Commission to be given stronger powers to block illegal gambling websites, remove unlicensed gambling apps and disrupt criminal operators. It cited analysis by H2 Gambling Capital suggesting that the amount staked with illegal operators in the UK has risen to £16.6bn, more than tripling since 2019. “Regulators need the ability to remove illegal sites more quickly and make it harder for criminal operators to reach consumers,” the body said.
As for payments, it hasn’t specified what form the measures could take but argues that it’s necessary to prevent payment providers from facilitating transactions linked to illegal gambling operators to disrupt the financial networks that sustain the black market.
Related to that, point four is a proposal to “hold enablers accountable“. By this, the BGC means to introduce “meaningful penalties” for companies that knowingly provide advertising, payment processing, hosting or other services to illegal gambling businesses.
“A network of companies often facilitates advertising, payments and online services, helping criminal operators reach British consumers,” the BGC said. “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 per cent 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.”
Finally, the BGC proposes the creation of 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,” it argues. “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.”
While the BGC has welcomed the government’s creation of an Illegal Gambling Taskforce as a first step, it says more action is needed, including “concrete action, ensuring regulators, law enforcement agencies, payment providers and technology companies work together to disrupt illegal operators and protect consumers”. The body warned that allowing the black market to continue to grow would undermine years of progress in raising standards and protecting vulnerable consumers.
Chief Executive Grainne Hurst 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.
