BGC warns illegal operators could take £10m during Epsom Derby Festival

The Betting and Gaming Council (BGC) has warned that illegal gambling operators could attract millions of pounds in wagers during the Betfred Derby Festival, one of the most prestigious events in British horse racing.

Ahead of the two-day meeting at Epsom, the industry body estimated that as much as £10 million could be staked with unlicensed operators. The figure includes up to £5 million that could be wagered on the Derby itself, the flagship race of the festival.

The warning comes as the gambling industry continues to raise concerns about the growth of the black market and its potential impact on consumers, licensed operators and the wider British economy.

Concerns over black market activity

The Derby Festival has long been one of the highlights of the British sporting calendar. Every year, the event attracts significant attention from racing fans and bettors across the country.

According to the BGC, major sporting occasions provide opportunities not only for licensed bookmakers but also for illegal operators seeking to attract customers outside the regulated market.

The organisation argues that unlicensed gambling websites do not offer the same consumer protections that are required of operators licensed in Great Britain. These protections can include age verification procedures, responsible gambling tools, anti-money laundering controls and mechanisms for handling customer complaints.

Industry representatives have repeatedly stated that maintaining a strong regulated sector is essential to ensuring consumers have access to safe betting environments.

Grainne Hurst highlights consumer protection concerns

BGC Chief Executive Grainne Hurst said the Derby remains one of the most important events in British horse racing and warned that illegal operators would seek to benefit from the occasion.

She said: “For more than 240 years, the Derby has been one of the defining moments in British horse racing. But while millions of customers will enjoy betting safely with regulated operators this weekend, the criminal black market will also be looking to cash in, offering bettors none of the protections available in the regulated sector.

“Recent evidence shows the black market is growing its reach and influence. Policies that make it harder for regulated operators to compete, risk driving more customers towards unsafe, unregulated gambling. The priority must be keeping customers in the regulated market, where robust protections are in place, rather than pushing them towards illegal operators.”

The comments reflect a wider debate within the gambling sector regarding how regulation should balance consumer protection with the need to maintain a competitive licensed market.

Wider concerns about illegal gambling growth

Alongside its Derby Festival warning, the BGC pointed to previous research suggesting that illegal gambling activity in Britain continues to grow.

The organisation referenced analysis from H2 Gambling Capital which forecast that the amount staked with illegal operators could increase from approximately £17 billion this year to more than £33 billion by 2028.

Those figures relate to the wider British gambling market and should not be confused with the Derby Festival estimates. The Derby-related estimate remains at up to £10 million across the festival weekend.

The BGC has consistently argued that excessive regulatory burdens may encourage some consumers to move away from licensed operators and towards unregulated alternatives.

Supporters of stricter regulation, meanwhile, maintain that enhanced safeguards remain necessary to reduce gambling-related harm and strengthen consumer protection standards.

Opposition to financial risk assessments

The Derby Festival warning also provided another opportunity for the BGC to restate its concerns regarding proposed financial risk assessments.

The assessments form part of wider gambling reform discussions in the United Kingdom and are intended to identify customers who may be at greater risk of experiencing gambling-related harm.

While supporters view the checks as an important safeguard, critics have raised concerns regarding privacy, customer experience and the possibility that some consumers may seek alternative gambling options if they perceive the process as intrusive.

The BGC has repeatedly argued that any such measures should be implemented in a manner that avoids unnecessary friction for consumers using licensed operators.

Leadership changes at the BGC

The warning comes during a period of organisational change within the Betting and Gaming Council.

Earlier this week, the BGC announced that Daniel Lindsay had been appointed Acting Director of Strategic Delivery while Stephanie Wong takes maternity leave.

The organisation has also undergone a recent leadership transition at board level. In April, Kane Purdy was appointed Chair of the BGC, succeeding Michael Dugher, who stepped down from the role in January.

These appointments come as the organisation continues to engage with policymakers, regulators and industry stakeholders on a range of issues affecting the gambling sector.

The challenge facing the regulated market

The debate surrounding illegal gambling remains one of the most significant issues facing the British betting industry. Licensed operators, regulators and policymakers all share an interest in ensuring consumers are protected from criminal activity and unsafe gambling environments.

At the same time, there remains disagreement regarding the best way to achieve that objective. Industry groups continue to advocate for policies that support a competitive regulated market, while public health advocates and some policymakers focus on strengthening consumer safeguards.

As major sporting events such as the Epsom Derby continue to attract substantial betting interest, the discussion surrounding regulation, consumer protection and black market activity is likely to remain a prominent feature of the UK's gambling policy landscape.

Conclusion

The BGC's warning ahead of the Betfred Derby Festival highlights ongoing concerns about the role of illegal gambling operators during major sporting events. While the organisation estimates that up to £10 million could be wagered with unlicensed operators during the festival, it also points to broader concerns about the long-term growth of the black market in Britain.

The debate extends beyond the Derby itself and touches on wider questions about regulation, consumer protection and market competitiveness. As policymakers continue to examine reforms to the gambling sector, maintaining a balance between effective safeguards and a sustainable regulated market will remain a central challenge for all stakeholders involved.

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 could be wagered with illegal operators during the Derby Festival?
The BGC estimates that up to £10 million could be staked with unlicensed operators during the two-day festival.

How much of that estimate relates to the Derby race?
The organisation believes that up to £5 million could be wagered on the Derby itself through illegal operators.

Who is Grainne Hurst?
Grainne Hurst is the Chief Executive of the Betting and Gaming Council.

What is the Epsom Derby?
The Epsom Derby is one of the most prestigious horse races in British horse racing and has been held for more than 240 years.

Why is the BGC concerned about illegal operators?
The BGC argues that illegal operators do not provide the same protections and safeguards available through licensed betting companies.

What are financial risk assessments?
They are proposed checks intended to identify customers who may be at greater risk of gambling-related harm.

Does the BGC support financial risk assessments?
The organisation has expressed concerns about the proposals and their potential impact on consumers and licensed operators.

Who is the current Chair of the BGC?
Kane Purdy became Chair of the organisation in April.

Who is serving as Acting Director of Strategic Delivery?
Daniel Lindsay is serving in the role while Stephanie Wong is on maternity leave.