Annual illegal gambling expenditures by British residents surpass the substantial sum of $1.3 billion.
Based on a research, around 1.5 million British citizens engage in illicit gambling activities annually, wagering a staggering 3.1 billion EUR. This unregulated market poses threats to player safety and leads to annual tax losses of approximately 388 million EUR.
Billions wagered on the illegal British gambling scene
A report by the British Gambling Council (BGC) [Link in English] uncovers that over 1.5 million Britons choose illicit platforms and invest over three billion EUR annually. It appears that illicit gaming options are easily accessible according to a Guardian article [Link in English].
Statistics on illicit gambling in the UK
- Around 1.5 million Brits gamble unlawfully every year.
- An estimated 3.1 billion EUR is gambled annually on unlicensed websites.
- The black market brings about 388 million EUR in annual tax losses.
- Young gamblers are particularly at risk, as illicit providers actively promote on social media.
- The number of unlawful gamblers has risen between 2020 and 2021, despite recent regulations.
The figures revealed by the BGC seem to only scratch the surface. When incorporating private games and bets, the number could surpass more than five billion EUR. Instead of 2% of the 152 billion EUR wagered annually in the British gambling market, this equals about 3%.
Measures appear to have little impact
The published figures contrast with initiatives taken by British authorities over the past few years to combat illegal gambling. In 2020, a credit card ban for gambling was implemented, yet a study by the National Centre for Social Research (NatCen) [Link in English] mentioned it had only modest impact on player behavior. According to PWC [Link in English], the number of users utilizing illegal gambling options in the UK actually increased significantly between 2020 and 2021.
Criticism also from the BGC
Grainne Hurst, CEO of the BGC, raised concerns in the Guardian that the government and the gambling commission could be underestimating the threat of the black market. She emphasized that simply increasing the gambling commission's powers and resources would not suffice, and stricter regulations would only motivate more individuals to turn to illicit providers.
Stricter regulations alone will not solve the issue of the black market." – Grainne Hurst, CEO of the BGC, The Guardian
Hurst criticized proposals like advertising restrictions and financial checks included in a white paper [Link in English] published by the government, currently in suspension due to the recent change of government at Downing Street. Uncertainty also surrounds the Labour Party's stance on issues such as stake limits for digital slot machines and a levy to fund measures against gambling harm.
The coming months could be pivotal in striking a balance between effective regulation and combating the expanding black market. While advocates of harsher rules continue to advocate for clear reforms to strengthen player protection and financial responsibility, the BGC forewarns of the potential negative consequences of excessive regulation. The BGC and gambling operators consistently argue the risks of the black market as an argument for cautious regulatory steps, which the gambling commission has previously condemned as exaggerated.
We acknowledge the damaging effects that problematic gambling can have on individuals and their families, and we are dedicated to improving protection for vulnerable populations."–Spokesperson for the British government, British government, The Guardian**
As per a spokesperson for the commission, the black market enforcement unit has issued over 750 cease and desist orders since April and reported over 78,000 URLs to Google, with 50,000 removed.
Rise of News Coverage on Illegal Gambling
The increase in illegal gambling activities has led to a surge in news coverage. Various media outlets, such as the British Gambling Council and The Guardian, have reported extensively on this issue.
Public Interest in Illicit Gambling News
Public interest in news about illegal gambling is at an all-time high, with numerous articles and reports revealing alarming statistics.
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