An estimated £2.7 billion is wagered annually with unlicensed online betting sites in the UK, according to a survey commissioned by the Betting and Gaming Council (BGC).
The report, conducted by Frontier Economics, revealed that this figure accounts for around 2.1% of the £128 billion bet with regulated online operators. While this may seem like a relatively small proportion, the amount of money flowing into the black market highlights a growing and serious concern for both the industry and consumers.
The survey was designed to better understand how UK punters are accessing and interacting with the illegal gambling market. It marks the first major analysis of its kind since the publication of the government’s white paper in May 2023, which called for reforms to modernise and strengthen gambling regulations. The findings paint a worrying picture of an expanding unregulated market that is operating outside the reach of existing laws and protections.
BGC Chief Executive Grainne Hurst described the results as “shocking” and emphasised the “unnerving true scale” of the growing black market. She called on the government and the UK Gambling Commission to implement tougher enforcement measures and warned that they were at risk of “sleepwalking” into an escalating issue. Hurst made it clear that simply increasing powers and resources for regulators would not be enough to combat the problem on its own. A broader, more strategic response is needed to effectively tackle the threat posed by illegal operators.
Among individuals who engage with both licensed and unlicensed platforms, the report found that approximately 12% of their total gambling expenditure is directed toward black market sites—equating to about £2 billion each year. Additionally, those who exclusively use illegal sites contribute a further £695 million annually. The report estimated that this level of illegal activity could result in up to £335 million in lost tax revenue over the course of a five-year parliamentary term.
Whilst this only accounts for roughly 2.1% of the £128 billion staked through licensed operators each year, the implications are far-reaching. The unchecked growth of unlicensed sites undermines regulatory efforts, reduces consumer protections, and leads to significant financial losses for public services that depend on gambling tax revenues. It also exposes users to potentially dangerous environments where fair play, data security, and support systems are virtually non-existent.
Punters who turn to illegal platforms may not fully understand the risks involved. Unlike licensed operators, black market sites operate without any form of regulation or oversight. This means there are no guarantees that games are fair, funds are secure, or personal data is protected. Players who encounter problems—whether related to withheld winnings, hacked accounts, or abusive practices—have no regulatory body to lodge complaints with. There is simply no safety net.
Additionally, these platforms often ignore basic responsible gambling tools such as deposit limits, time-outs, and self-exclusion features. Without these safeguards in place, users are more vulnerable to gambling-related harm. This lack of accountability also makes it easier for minors and individuals with gambling problems to access harmful content unchecked. As the BGC’s research indicates, the appeal of black-market sites is growing, making it more important than ever to raise awareness about the dangers they pose.
To protect consumers and ensure a fair, responsible gambling environment, it’s essential that players choose operators licensed by the UK Gambling Commission. These platforms are required to follow strict standards around security, fairness, and responsible play — including identity verification, deposit limits, and dispute resolution processes.
Brands operating under UKGC oversight, such as BetWright, are part of this regulated ecosystem, helping to uphold industry integrity and safeguard consumers against the risks posed by unlicensed alternatives.
Read more:
BGC survey forecasts £2.7 billion wagered each year on UK’s illegal gambling market
