Illegal gambling stakes in UK surge to £16.6bn, says BGC

(AsiaGameHub) –   A new study indicates that spending with unlicensed gambling providers has doubled over the past two years.

The United Kingdom’s main industry lobby group, the Betting and Gaming Council, has warned that illegal gambling operators in Britain have seen stakes rise to more than £16 billion. This represents a doubling of activity within just two years and a tripling compared to 2019.

The figure is based on research by H2 Gambling Capital (H2GC), which found that offshore betting stakes increased from approximately £5 billion in 2019 to £16.6 billion in 2025. The report also states that both total stakes and operator profits doubled between 2023 and 2025.

Additionally, the study suggests that the proportion of gambling conducted through Gambling Commission-licensed operators declined from 97 per cent in 2019 to 92 per cent in 2025. The press release does not provide details on how these figures were derived, and regulators have often questioned the accuracy of surveys commissioned by the industry.

The Gambling Commission has stated that it has observed no evidence of increased participation in unlicensed gambling, though it is currently seeking to appoint a new head of illegal markets to strengthen its enforcement efforts after establishing a dedicated taskforce against illegal gambling.

The BGC attributes the growth of the black market to several factors, including heightened regulatory pressure and greater online visibility of illegal operators. It also cited rising taxation, although the increase in Remote Gaming Duty only took effect last month and thus did not influence the figures reported.

The BGC further noted that prior analysis by WARC indicates illegal operators now account for nearly half of all UK gambling advertising expenditure, a share expected to exceed 50 per cent within two years.

BGC chief executive Grainne Hurst said: “What we are witnessing is a harmful black market expanding rapidly. Illegal operators are becoming more sophisticated, more visible, and more aggressive in their outreach to UK customers—a development that should alarm anyone concerned about consumer protection.

“Policymakers face a clear choice: if the regulated sector becomes harder to access or less competitive, customers will not cease gambling—they will simply shift to unregulated alternatives. That’s why financial risk assessments must either be truly ‘frictionless’ or omitted altogether; otherwise, they risk pushing users out of the licensed market.

The BGC maintains that measures aimed at reducing gambling-related harm must be carefully balanced to avoid unintended consequences that bolster the illegal market. It highlighted that the regulated betting and gaming sector supports over 109,000 jobs, contributes £6.8 billion annually to the UK economy, and generates £4 billion in tax each year—while also funding British horseracing.

Recently, the BGC appointed Kane Purdy, Managing Director at Gamesys Operations, as its new non-executive chair. He succeeds Michael Dugher, who stepped down in January following just under two years in the role.