The harmful illegal gambling black market is believed to have generated a major Boxing Day handle. According to the Betting and Gaming Council, UK bettors are estimated to have staked as much as £100 million illegally over the festive period.
Boxing Day, one of the busiest days in the sporting calendar thanks to a packed schedule of football and racing, is estimated to account for around 1% of total annual sports betting activity. Industry analysis based on data from H2 Gambling Capital suggests that the scale of activity translates into tens of millions of pounds flowing to illegal operators in just 24 hours.
Billions Flowing Through Illegal Channels
The BGC said the Boxing Day figures underline the growing scale of the harmful illegal black market, which already accounts for billions of pounds in gambling stakes each year.
Unlike licensed operators, illegal sites offer no consumer protections, no age verification, no safer gambling tools and pay no UK tax, the industry body warned. The black market is particularly adept at exploiting peak sporting moments, when consumer demand is highest.
Budget Fears and Tax Impact
The warning comes amid growing concern that recent Budget measures could further accelerate the shift towards illegal gambling.
The Government’s own forecaster, the Office for Budget Responsibility (OBR), has acknowledged that tax changes are expected to reduce projected revenues by around one-third by 2029–30, as consumers change behaviour. This includes moving away from regulated betting towards illegal operators, contributing to an estimated £500 million loss in projected tax receipts next year.
Independent modelling by EY paints an even starker picture, suggesting the combined impact of the tax changes could divert more than £6 billion in betting stakes to the black market. That would represent a 140 per cent increase in its size and put nearly 17,000 jobs across online betting and gaming at risk.
Industry Warning
Grainne Hurst, Chief Executive of the Betting and Gaming Council, said the festive period highlighted the risks of driving customers away from regulated operators. Hurst spoke of the importance of Boxing Day:
“Boxing Day is one of the biggest days of the year for sport and betting, and the harmful illegal black market is gearing up for a huge payday, with Brits set to stake up to £100 million illegally in just 24 hours.”
In addition to that, Hurst also discussed how the wagered money goes to unregulated brands:
“That money goes straight to criminal operators who offer zero protection and pay no tax. If higher taxes make regulated betting less attractive, the harmful black market will be the only winner. That is bad for consumers, jobs and the public finances.”
Regulated Sector vs Black Market
Licensed betting and gaming operators are subject to strict rules on player safety, affordability checks and anti-money laundering. They also contribute billions to the UK economy and provide significant funding for British sport and racing.
By contrast, the BGC said the illegal black market operates entirely outside the law, targeting UK customers without oversight, accountability or tax contributions.
The regulated sector currently supports more than 109,000 jobs and, even before the latest Budget, contributed £6.8 billion to the UK economy while paying £4 billion in tax each year.
Call for Government Action
Following the festive period, the BGC is urging the Government to work more closely with the industry to ensure regulation and taxation strike the right balance between strong consumer protections and preventing illegal operators from gaining ground.
The council warned that without that balance, peak sporting moments like Boxing Day risk becoming increasingly lucrative opportunities for the harmful illegal black market.
Growing Concerns Over Impact on Children and Young People
In the meantime, concerns about the expansion of illegal and unregulated gambling are further reinforced by new research highlighting the impact of gambling exposure on children and young people.
A recent State of the Nation report from GambleAware warns that gambling-related harms among young people in Great Britain have reached a critical point. According to research performed from 2020 to 2025, as well as expertise from a Youth Advisory Group, gambling is becoming increasingly normalised among children, often well before they reach the legal age.
Based on the findings, around 30% of 11 to 17-year-olds spent their own money on gambling in the past year, while exposure to online gambling advertising and influencer-led promotions continues to rise.
The report also highlights growing concern over gambling-like mechanics in video games, such as loot boxes and skin betting, which blur the line between gaming and gambling and can make risky behaviour appear harmless.
Incredibly Worrying, says Chief
GambleAware Chief Executive Anna Hargrave said the level of exposure facing young people is “incredibly worrying” and called for urgent, coordinated action. The report stresses that harms are unevenly distributed, with higher risks among young people from deprived areas, neurodivergent individuals and some minority ethnic groups.
The findings add weight to calls for stronger regulation, improved digital protections and youth-focused support, amid warnings that failure to act risks further normalising gambling and increasing long-term harm.
