Just this week, the Betting and Gaming Council has unveiled a major new five-point plan which should help the UK crack down on the rapidly expanding illegal gambling market. The council has also warned that failure to act could expose consumers to fraud, criminal activity, and gambling-related harm.
BGC currently represents around 90% of the regulated UK betting and gaming industry, and is now calling on ministers, regulators, technology companies, and financial institutions to work together to disrupt illegal casino operators that target British consumers.
The intervention comes amid growing evidence that the black market is gaining momentum. Numbers from H2 Gambling Capital suggest that stakes placed with illegal gambling operators could rise from £17 billion in 2025 to more than £33 billion by 2028.
Concerns Mount Over Consumer Safety
According to the BGC, illegal iGaming sites provide no protection required by the regulated sector. Unlike licensed casinos, black market entities do not conduct robust age verification checks, safer gambling interventions, or affordability assessments, nor do they provide consumers with access to dispute resolution mechanisms.
The organisation warned that every customer who moves from the regulated market to an illegal platform loses access to these safeguards, which can increase the risk of financial crime, fraud, and gambling-related harms.
Grainne Hurst, Chief Executive of the BGC, said the issue should concern anyone focused on consumer protection.
“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.”
Five-Point Strategy to Fight Illegal Operations
The BGC's proposed strategy focuses on disrupting illegal operators at every stage of their operations, from advertising and customer acquisition to payment processing and enforcement.
The first measure calls for social media platforms and tech companies to take greater responsibility for removing illegal gambling advertisements and content from their channels.
BGC argues that unregulated operators continue to rely on social media, search engines, and online advertising to reach British consumers. Analysis from WARC suggests illegal operators now account for nearly half of all UK gambling advertising spend and are projected to overtake licensed operators by 2028.
The organisation believes faster removal of illegal content would help prevent criminal businesses from targeting vulnerable consumers and children online.
Strengthen Website Blocking Powers
With the second proposal, the council seeks more authority for the Gambling Commission to block illegal gambling websites, remove unlicensed gambling applications, and disrupt criminal operators more efficiently.
Illegal operators often launch new websites which resemble legitimate brands, making enforcement increasingly challenging. That’s why the BGC insists that regulators require stronger tools to keep pace with the evolving tactics.
Disrupt Financial Networks
The third recommendation looks into cutting off the financial lifelines that help sustain illegal gambling operations.
The BGC urges payment providers and financial institutions to block transactions linked to unlicensed gambling. Data from H2 Gambling Capital suggests that bets and profits generated by black market operators have doubled between 2023 and 2025.
Industry leaders believe restricting payment flows would significantly reduce illegal operators’ ability to attract and retain customers.
Hold Third-Party Enablers Accountable
The fourth element of the plan proposes significant penalties for companies that knowingly provide services to illegal gambling operators. These services may include advertising, payment processing, website hosting, affiliate marketing, and other forms of operational support.
BGC also highlighted that compliance levels among licensed gambling operators remain exceptionally high, with Advertising Standards Authority rulings affecting fewer than 0.02% of gambling advertisements. Still, illegal operators frequently rely on influencers, search engines, and AI-generated content to target consumers.
Introduce Tougher Criminal Penalties
The final recommendation calls for stronger criminal sanctions against individuals and organisations that operate, support, or profit from illegal gambling activities targeting UK consumers.
The BGC argues that existing penalties do not adequately reflect the scale of consumer harm associated with illegal gambling and believes tougher sanctions would serve as a stronger deterrent while providing law enforcement agencies with more effective tools.
Black Market Growth Threatens Industry Progress
The BGC warned that the continued expansion of the illegal gambling sector risks undermining years of progress made by the regulated industry in raising standards and improving consumer protections.
The organisation also cautioned that policy decisions which inadvertently push consumers towards unlicensed operators could strengthen criminal enterprises and increase gambling-related harm.
Hurst stressed that illegal gambling extends beyond an industry issue and should be viewed as a broader societal challenge.
“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.”
Call for Greater Collaboration
While welcoming the Government's Black Market Taskforce as a positive first step, the BGC said more coordinated action is needed to address the threat effectively.
The council is urging regulators, law enforcement agencies, payment providers, and technology companies to work together to disrupt illegal operators, prevent them from reaching consumers, and shut down the networks that enable their activities.
As illegal gambling businesses become increasingly sophisticated, often relying on social media platforms, affiliate networks, search engines, and encrypted communications to attract customers, the BGC believes urgent intervention is required to protect consumers.
Protecting Consumers Through Regulation
The BGC concluded that the most effective way to protect consumers is to keep them within the regulated gambling market, where robust safeguards, safer gambling tools, affordability protections, age-verification checks, and regulatory oversight are already in place.
With black market gambling expected only to grow larger over the next three years, the organisation is urging policymakers to act before illegal operators gain an even greater handle on the local online casino market.
