BGC Unveils Comprehensive Five-Point Strategy to Combat UK Black Market
On June 8, the Betting and Gaming Council (BGC) introduced a comprehensive five-point plan aimed at addressing the escalating issue of illegal gambling operations targeting consumers in the UK. The initiative calls on the government, regulators, technology firms, and payment service providers to collaborate in shutting down illicit operators. Representing approximately 90% of the regulated UK betting and gaming sector, the BGC emphasized the urgency of the matter, warning that without intervention, black market stakes could nearly double within three years. BGC Five-Point Strategy
Independent research from H2 Gambling Capital forecasts that illegal gambling stakes may surge from £17 billion in 2025 to over £33 billion by 2028. If this trend continues, nearly 20% of all online stakes could be placed with unlicensed operators within three years. The analysis highlights that the amount wagered through unlicensed platforms has already reached £16.6 billion, more than tripling since 2019 and doubling over the past two years alone.
The BGC characterized the five-point plan as a direct response to evidence indicating that unlicensed operators are expanding at a pace that current enforcement efforts cannot contain. These operators operate without the safeguards mandated in the regulated sector, do not pay UK taxes, and contribute nothing to British sport, the body argued. The plan delineates five targeted measures addressing various aspects of the illegal gambling ecosystem. The first measure seeks to hold social media companies accountable for removing illegal gambling content. Citing WARC analysis, the BGC noted that illegal operators now account for nearly half of all UK gambling advertising expenditure and are projected to surpass licensed operators by 2028.
The second measure advocates for enhanced authority for the Gambling Commission to block illegal websites and eliminate unlicensed gambling applications. This aims to counteract how swiftly criminal operators can create new platforms designed to imitate legitimate brands. The third proposal focuses on preventing financial providers from processing transactions linked to illegal operators, thereby disrupting the financial networks that sustain these illicit businesses.
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The fourth measure proposes imposing penalties on companies that knowingly provide advertising, payment processing, hosting, or other services to illegal gambling entities. The BGC referenced Alvarez & Marsal analysis, which shows high compliance among licensed operators, with fewer than 0.02% of gambling adverts receiving Regulatory Authority rulings. The final measure calls for harsher criminal penalties against individuals who operate, support, or profit from unlicensed gambling activities.
The BGC framed the plan as a matter of public policy rather than solely industry self-interest. It emphasized concerns around fraud, financial crime, and gambling-related harm associated with the black market. The body warned that policies unintentionally driving consumers toward unlicensed operators risk empowering criminal enterprises and undermining efforts to promote safer gambling practices.
This stance is particularly relevant given recent tax increases, which raise the online casino tax rate to 40% and sports betting to 25%. Operators such as Evoke have already argued that these higher duties may push consumers toward unlicensed sites, reinforcing the BGC’s call for stricter enforcement. The rapid growth of the black market is becoming increasingly visible and attracting billions of pounds in stakes serves as a wake-up call for stakeholders committed to consumer protection. If current trends persist, stakes in illegal gambling could exceed £33 billion within three years, with nearly one in five pounds staked online potentially ending up with unlicensed operators.
Grainne Hurst, CEO of the BGC, highlighted that illegal operators do not implement safer gambling interventions, proper age verification, or provide redress options when problems occur. She described tackling the black market as a multifaceted issue encompassing consumer protection, public health, and criminal justice, requiring coordinated efforts across government, regulators, and the technology and payments sectors.
The BGC welcomed the Government’s Black Market Taskforce as a positive step but urged for its efforts to be intensified and translated into tangible enforcement actions. The organization advocates for a coordinated approach involving regulators, law enforcement, payment providers, and technology companies to disrupt illegal operators effectively. This call coincides with a broader regulatory framework, wherein the Gambling Commission has already mapped the scope of the problem. Its final report on the illegal online gambling market examined how unlicensed operators reach UK consumers, and the BGC’s plan effectively urges ministers to act on this evidence by granting new powers and sanctions. While the five-point plan represents a strategic lobbying effort, it is not yet formal policy, and no timeline has been set for legislative change. The extent to which ministers will adopt these measures remains uncertain, pending the progression of the Black Market Taskforce’s efforts over the coming year. BGC Five-Point Strategy
