UK Gambling Commission intensifies action against illegal lotteries

The UK Gambling Commission is preparing to increase enforcement efforts against illegal lotteries as licensed society lotteries across Great Britain continue to achieve record financial results. The regulator has warned that unlicensed lottery activity presents growing risks to consumers, charities and the integrity of the regulated gambling market.

The renewed focus comes after society lotteries generated more than £1 billion in gross gambling yield during the 2024/25 financial year for the second consecutive year. The figures highlight the continued popularity of charity-linked lottery products across Great Britain while also exposing the increasing challenges associated with online and digitally distributed gambling activity.

Officials from the Commission stated that the expansion of digital gambling channels has made it easier for illegal operators to reach consumers through social media platforms, search engines and online advertising. As a result the regulator plans to strengthen monitoring and enforcement measures aimed at reducing the visibility and accessibility of unlicensed lotteries.

Society lotteries deliver another strong financial year

According to figures presented at the Lotteries Council Annual Conference by Gambling Commission Director of Policy Ian Angus society lotteries recorded gross gambling yield exceeding £1 billion during the latest reporting period.

The sector reported year-on-year growth of 4.7% while contributions directed toward charitable and community causes increased by 4.8% to £484.6 million. In addition players received more than £316 million in prizes during the same period.

These results reinforce the position of society lotteries as one of the most widely used gambling products in Great Britain. Data from the Gambling Survey for Great Britain indicated that approximately 17% of adults participated in society lotteries between July and October last year. That figure represents around nine million individuals.

Participation levels placed society lotteries behind only the National Lottery which attracted 32% of adults during the same period. Society lotteries also exceeded participation levels recorded in general betting markets which stood at approximately 10%.

Industry observers believe the figures demonstrate that many consumers continue to view society lotteries differently from higher-risk gambling products because of their connection to charitable fundraising and local community support initiatives.

Digital channels continue reshaping the lottery sector

Remote and digital distribution channels remained the dominant source of revenue for society lotteries throughout the financial year. Remote sales generated £793.3 million in gross gambling yield while non-remote channels contributed £314.9 million.

The continued growth of digital participation reflects a broader transformation across the gambling industry where consumers increasingly use mobile applications websites and digital payment systems to access lottery products.

While digital expansion has helped legitimate operators reach wider audiences it has also created new challenges for regulators. Illegal lottery operators can now advertise rapidly across online platforms often imitating legitimate charity-linked campaigns or using misleading promotional material.

The Gambling Commission has repeatedly warned that some unlicensed operators attempt to exploit public trust in charitable causes by presenting themselves as community fundraising initiatives despite operating outside regulatory requirements.

Regulators believe this activity can undermine confidence in legitimate society lotteries that comply with licensing standards consumer protection measures and financial transparency obligations.

Illegal gambling identified as a growing threat

During his conference address Angus described illegal gambling as a major concern for the society lottery sector. He stressed the importance of cooperation between licensed operators and regulators in identifying suspicious activity and reporting potential breaches.

“Illegal gambling is of course a big threat for the society lotteries sector,” Angus said.

He encouraged licensed operators to continue sharing intelligence with the regulator in order to help “frustrate the illegal market.”

The Commission stated that enforcement work against illegal lotteries will form part of a wider national strategy aimed at reducing black market gambling activity across Great Britain.

As part of this initiative the regulator will receive £26 million in Treasury funding over a three-year period. The funding will support new enforcement technologies automated monitoring systems and expanded analysis of illegal gambling operations.

The regulator is also working alongside the government’s Illegal Gambling Taskforce to develop Great Britain’s first national risk assessment focused specifically on illegal gambling markets.

Officials believe the assessment will help identify emerging threats patterns of consumer harm and areas where stronger enforcement action may be required.

Social media enforcement activity increases sharply

The Gambling Commission stated that recent enforcement measures have already produced measurable results particularly in the online environment.

According to the regulator social media platforms removed 356 illegal lotteries during 2025 compared with 190 removals during 2024. An additional 79 illegal lotteries have already been removed during 2026.

The Commission also issued 741 cease and desist notices over the last financial year. Authorities further reported the removal or geo-blocking of 1,134 gambling-related websites linked to illegal activity.

In addition regulators confirmed that 266,667 illicit URLs were removed from search engine indexing systems as part of broader disruption efforts designed to prevent consumers from accessing unlicensed gambling products.

The Commission said these actions form part of a preventative strategy focused on disrupting illegal operators before consumers engage with potentially unsafe gambling environments.

Industry analysts note that the visibility of illegal lotteries online remains a major concern because many consumers may not immediately recognise the difference between licensed and unlicensed products.

Charitable trust remains central to the sector

The issue of illegal lottery activity carries particular sensitivity for society lotteries because public confidence is closely tied to charitable fundraising.

Many licensed society lotteries support local organisations medical research community projects sports clubs and educational initiatives. Consumers who participate in these lotteries often do so with the expectation that proceeds will contribute to socially beneficial causes.

Regulators have warned that illegal operators risk damaging this trust if consumers become uncertain about whether funds are genuinely reaching charitable beneficiaries.

The Gambling Commission therefore continues to emphasise the importance of transparency licensing compliance and accurate marketing practices across the sector.

Industry representatives have also argued that maintaining consumer confidence is essential to ensuring the long-term sustainability of charitable lottery fundraising throughout Great Britain.

Licensed operators urged to maintain safeguards

Although society lotteries are generally viewed as lower-risk gambling products the Commission warned operators against becoming complacent regarding consumer protection responsibilities.

The latest Gambling Survey for Great Britain found that 2.7% of the adult population scored eight or higher on the Problem Gambling Severity Index. This score range is associated with potential gambling-related harm including loss of control and negative financial or emotional consequences.

Angus stated that individuals experiencing gambling harm frequently engage with multiple gambling products rather than a single activity alone.

As a result the regulator expects all licensed operators including society lottery providers to maintain appropriate consumer protection measures responsible gambling tools and compliance systems.

Earlier this year the Commission introduced its Licence Support service following a pilot programme conducted during 2024. The initiative provides operators with a dedicated point of contact for technical guidance regulatory clarification and compliance-related support.

The regulator said the service is intended to improve communication with operators while encouraging stronger adherence to licensing standards.

Government introduces voluntary code for prize draws

The Commission also highlighted the government’s newly introduced voluntary code for prize draws which came into effect on May 20.

Prize competitions and free draws are not directly regulated by the Gambling Commission. However authorities continue monitoring the boundary between legitimate prize promotions and activities that may qualify as illegal lotteries under gambling legislation.

Officials indicated that some operators attempt to structure promotions in ways that avoid formal gambling regulation despite operating in a manner similar to lotteries.

The regulator stated that it will continue reviewing developments in this area to ensure that consumer protections remain effective and that unlawful activity is identified where necessary.

Conclusion

The latest financial results confirm that society lotteries remain an important part of Great Britain’s gambling and charitable fundraising landscape. Strong participation levels continued digital growth and rising contributions to good causes have reinforced the sector’s significance within the wider regulated market.

At the same time the expansion of online gambling channels has created new opportunities for illegal lottery operators to target consumers through digital platforms. The UK Gambling Commission’s decision to intensify enforcement activity reflects broader concerns about consumer protection market integrity and the safeguarding of public trust in legitimate charitable fundraising.

With additional government funding enhanced monitoring systems and increased cooperation between regulators and licensed operators the Commission aims to strengthen its response to illegal gambling activity over the coming years. For licensed society lotteries maintaining transparency compliance and responsible gambling safeguards will remain essential as the sector continues to grow in an increasingly digital environment.

FAQs

What are society lotteries in Great Britain?
Society lotteries are licensed lottery products operated to raise funds for charitable community sporting or other non-commercial causes in Great Britain.

Why is the UK Gambling Commission targeting illegal lotteries?
The regulator believes illegal lotteries can harm consumers damage trust in legitimate charities and undermine the integrity of the regulated gambling market.

How much revenue did society lotteries generate in 2024/25?
Society lotteries generated more than £1 billion in gross gambling yield during the 2024/25 financial year.

How much money was contributed to good causes?
Licensed society lotteries contributed approximately £484.6 million to charitable and community causes during the reporting period.

What role do online platforms play in illegal lotteries?
Illegal operators often use social media search engines and digital advertising to promote unlicensed lottery products to consumers.

How many illegal lotteries were removed from social media in 2025?
The Gambling Commission reported that 356 illegal lotteries were removed from social media platforms during 2025.

What enforcement measures has the regulator taken?
The Commission has issued cease and desist notices blocked gambling websites and removed hundreds of thousands of illicit URLs from search engines.

Are society lotteries considered high-risk gambling products?
Society lotteries are generally regarded as lower-risk products compared to some other forms of gambling although regulators still expect operators to maintain strong consumer protection measures.

What is the purpose of the Licence Support service?
The service provides licensed operators with regulatory guidance technical assistance and support on compliance-related matters.

Are prize draws regulated by the Gambling Commission?
Free prize draws and competitions are generally not regulated by the Gambling Commission although authorities continue monitoring activities that may cross into illegal lottery operations.