BGC warns as illegal UK gambling expands to £16.6bn in 2025

The UK’s illegal gambling market has expanded significantly in recent years according to new research highlighted by the Betting and Gaming Council (BGC), with offshore betting stakes reportedly reaching £16.6bn in 2025. The figures have intensified industry discussions regarding consumer protection, regulatory policy and the long-term competitiveness of the licensed betting and gaming sector in the United Kingdom.

Research conducted by H2 Gambling Capital found that the value of bets placed with illegal operators has more than tripled since 2019. At that time, offshore gambling stakes were estimated at approximately £5bn. The latest analysis suggests the black market has grown substantially during the past six years, reflecting broader concerns within the sector about the migration of customers toward unregulated platforms.

The report also indicated that the share of gambling activity taking place within the regulated UK market has declined. In 2019, regulated operators reportedly accounted for 97% of gambling activity. By 2025, that figure had fallen to 92%, signalling a measurable shift in customer behaviour.

Industry representatives have argued that while the regulated sector remains dominant, the expansion of illegal gambling activity raises concerns about player safety, compliance standards and enforcement challenges.

Offshore gambling activity shows rapid growth

According to the research cited by the BGC, both betting stakes and operator profits connected to offshore platforms doubled between 2023 and 2025. The figures suggest that unlicensed operators are increasing their reach and visibility among UK consumers at a time when regulatory scrutiny of licensed businesses continues to intensify.

The BGC stated that several policy developments may contribute to the growing appeal of unregulated platforms. These include higher compliance costs, increased taxation and proposed financial risk assessments for customers gambling with licensed operators.

The trade body maintains that stricter regulations could unintentionally create commercial advantages for offshore websites that operate outside UK rules and licensing frameworks. Industry stakeholders have repeatedly stressed that unlicensed operators are not required to meet the same standards relating to safer gambling measures, affordability checks, anti-money laundering procedures or customer dispute protections.

The debate surrounding financial risk assessments has become particularly prominent in recent years following reforms proposed under the UK government’s gambling review process. Supporters of tighter controls argue that enhanced safeguards are necessary to reduce gambling-related harm. Critics within the industry however believe excessive restrictions could drive some consumers away from regulated companies and toward offshore alternatives.

Advertising concerns add to industry debate

Separate research from WARC also pointed to an increasing online advertising presence for illegal gambling operators. The BGC warned that greater digital visibility for offshore brands may further strengthen the black market if enforcement efforts fail to keep pace with changing marketing practices.

Industry observers have noted that illegal operators frequently use digital channels including social media, affiliate marketing and unofficial streaming platforms to attract consumers. Because these businesses operate outside the UK licensing system, enforcement action can prove more difficult than with domestic operators.

The growing prominence of unlicensed gambling advertisements has become a major concern for licensed operators that are subject to strict marketing rules under the UK Gambling Commission framework. Licensed companies must comply with advertising standards related to responsible messaging, age restrictions and social responsibility requirements.

The BGC has argued that uneven enforcement between licensed and unlicensed markets creates risks for consumers who may unknowingly engage with platforms lacking regulatory oversight.

BGC highlights economic role of regulated sector

Alongside its warnings about offshore gambling growth, the BGC reiterated the economic importance of the regulated betting and gaming industry in the UK.

According to the organisation, the licensed sector supports more than 109,000 jobs across betting shops, casinos, bingo venues, online gaming businesses and associated technology services. The BGC also stated that the industry contributes approximately £6.8bn annually to the UK economy while generating around £4bn in tax revenue.

The organisation argues that maintaining a competitive licensed market is essential not only for consumer protection but also for preserving employment opportunities and public revenues connected to the sector.

Licensed gambling operators in the UK are subject to extensive regulatory obligations including safer gambling initiatives, identity verification requirements and financial compliance measures. Industry representatives frequently emphasise that these standards are designed to create a safer environment for consumers compared with unregulated markets.

At the same time, public health advocates and gambling reform campaigners continue to call for stronger protections against gambling-related harm, particularly in relation to online betting accessibility and advertising exposure.

Regulatory balance remains central issue

The latest research has added momentum to ongoing discussions about how regulators and policymakers can balance consumer safeguards with maintaining high channelisation rates toward licensed operators.

Channelisation refers to the proportion of customers using regulated gambling services rather than offshore or illegal alternatives. Many European gambling jurisdictions consider high channelisation rates a key indicator of regulatory effectiveness because it ensures customers remain within environments that provide oversight and legal protections.

Industry analysts have warned that if regulatory conditions become too restrictive, some consumers may seek less regulated alternatives that offer fewer checks, larger bonuses or easier access. However, gambling reform advocates argue that strong consumer protection measures remain necessary regardless of market pressures.

The UK government and the Gambling Commission continue to evaluate policy reforms aimed at reducing gambling-related harm while preserving the sustainability of the licensed industry.

Grainne Hurst comments on black market concerns

Grainne Hurst, Chief Executive of the Betting and Gaming Council, addressed the findings and warned that illegal operators are becoming increasingly sophisticated in how they target UK consumers.

She said: “What we are seeing is a harmful black market scaling up at pace.

“Illegal operators are becoming more sophisticated, more visible and more aggressive in how they reach UK customers. That should concern anyone who cares about consumer protection.

“The choice for policymakers is clear. If the regulated sector becomes harder to use or less competitive, customers will not stop betting, they will simply go elsewhere.

“That is why financial risk assessments must either be genuinely ‘frictionless’ or not introduced at all – because anything else will push customers out of the regulated market.”

Her comments reflect broader concerns within parts of the industry that regulatory friction could unintentionally weaken the attractiveness of licensed operators compared with offshore competitors.

Enforcement challenges remain significant

Efforts to combat illegal gambling activity remain a complex issue for regulators and enforcement agencies. Offshore operators often function across multiple jurisdictions which can complicate legal action and website restrictions.

Authorities have increasingly focused on blocking illegal domains, disrupting payment channels and strengthening international cooperation to limit access to unlicensed gambling services. However, technology developments and digital advertising practices continue to create new challenges for enforcement efforts.

Industry experts note that maintaining consumer trust in licensed platforms will likely remain a key factor in reducing black market participation. Competitive product offerings, transparent regulation and effective consumer protections are widely viewed as essential components of a sustainable regulated gambling market.

Conclusion

The latest data referenced by the Betting and Gaming Council has intensified scrutiny of the UK’s evolving gambling landscape. With offshore betting stakes reportedly climbing to £16.6bn in 2025, concerns surrounding black market growth, consumer protection and regulatory balance are expected to remain central issues for policymakers and industry stakeholders.

While the regulated gambling sector continues to represent the overwhelming majority of betting activity in the UK, the reported decline in channelisation rates highlights the growing influence of unlicensed operators. The debate now centres on how authorities can strengthen safeguards for consumers without creating conditions that encourage migration toward offshore platforms.

As discussions around affordability checks, taxation and regulatory reform continue, the challenge for regulators will involve balancing public protection objectives with preserving the competitiveness and sustainability of the licensed market. The outcome of that debate is likely to shape the future direction of the UK gambling industry in the years ahead.

FAQs

What is the Betting and Gaming Council?
The Betting and Gaming Council is a trade association representing licensed betting and gaming operators in the United Kingdom.

How much has illegal gambling reportedly grown in the UK?
Research cited by the BGC stated that offshore gambling stakes increased from around £5bn in 2019 to £16.6bn in 2025.

What is meant by offshore gambling operators?
Offshore gambling operators are companies that provide betting or gaming services to UK consumers without holding a UK gambling licence.

Why are unlicensed gambling sites considered risky?
Unlicensed operators are not required to follow UK consumer protection standards including safer gambling measures and dispute resolution processes.

What is channelisation in gambling regulation?
Channelisation refers to the percentage of gambling activity taking place through licensed and regulated operators instead of illegal platforms.

What concerns has the BGC raised about regulation?
The BGC stated that excessive regulatory burdens and friction could encourage some customers to move toward offshore gambling sites.

What role do financial risk assessments play?
Financial risk assessments are proposed checks intended to identify customers potentially at risk of gambling-related harm.

How significant is the regulated gambling sector to the UK economy?
According to the BGC, the regulated sector supports more than 109,000 jobs and contributes billions in tax revenue and economic activity annually.

What did WARC research reportedly find?
Research from WARC suggested that illegal gambling operators are increasing their share of online gambling advertising activity.

Can UK authorities stop illegal gambling websites completely?
Regulators continue to take enforcement action against illegal operators although international jurisdictions and digital technologies can make enforcement more challenging.