The Betting and Gaming Council (BGC) has published a five-point plan aimed at tackling the growth of the UK’s illegal gambling market, calling for greater cooperation between government, regulators, technology companies and financial institutions.
The trade body, which represents around 90% of the regulated UK betting and gaming sector, said increasing activity by unlicensed operators is exposing consumers to greater risks, including fraud, financial crime and gambling-related harm.
According to forecasts cited by the BGC from H2 Gambling Capital, stakes placed with illegal gambling operators could increase from £17bn in 2025 to more than £33bn by 2028. The organisation said this could result in almost one-fifth of online gambling stakes being placed with unlicensed operators within three years.
The first element of the BGC’s proposal calls for stronger action against illegal gambling advertising. The organisation wants social media platforms and technology companies to remove unlicensed gambling content and advertisements more quickly. The BGC cited analysis from WARC which found that illegal operators account for almost half of UK gambling advertising spend.
A second recommendation is to provide the UK Gambling Commission with enhanced powers to block illegal gambling websites and remove unlicensed gambling applications. The BGC said illegal operators are increasingly able to create websites and apps that resemble legitimate brands, making enforcement more challenging.
The third proposal focuses on payment processing. The BGC is calling for payment providers to prevent transactions linked to illegal gambling operators, arguing that disrupting payment flows would make it more difficult for unlicensed businesses to operate.
The trade body also wants penalties introduced for companies that knowingly provide services to illegal gambling operators, including advertising, hosting and payment processing. It noted that regulated operators are subject to strict advertising standards, while illegal operators frequently use alternative channels such as influencers and AI-generated content.
The fifth point of the plan calls for tougher criminal sanctions against individuals and organisations involved in illegal gambling operations targeting UK consumers.
The BGC said illegal operators are increasingly using social media, affiliate networks, search engines and encrypted communications platforms to attract customers away from the regulated market.
The organisation also warned that policy measures which unintentionally encourage customers to use unlicensed operators could undermine consumer protection efforts. It argued that players using illegal sites lose access to safeguards available in the regulated market, including age verification checks, safer gambling tools, affordability protections and formal dispute resolution processes.
The BGC said the Government’s Black Market Taskforce was a positive step but called for additional action to ensure regulators, law enforcement agencies, payment providers and technology companies work together to disrupt illegal gambling activity and protect consumers.
Grainne Hurst, Chief Executive of the Betting and Gaming Council, said: “The black market is growing fast, becoming more visible and attracting billions of pounds in stakes from British consumers.
“These forecasts are a wake-up call for everyone involved in protecting consumers. 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.
“That should concern anyone who cares about consumer protection and reducing gambling-related harm.
“Illegal gambling operators offer none of the protections required in the regulated sector. They do not conduct safer gambling interventions, they do not carry out identity checks, they do not verify age properly and they provide no route to redress when things go wrong.
“Every customer who is driven into the black market loses those protections.
“The evidence is already clear. Illegal operators are targeting British consumers online, advertising through social media, processing payments through legitimate financial systems and exploiting gaps in enforcement.
“If policymakers fail to tackle this growing threat, more gambling will take place in environments with no safeguards, no oversight and no consumer protections.
“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.
“Government, regulators, technology companies and payment providers must work together to stop illegal operators reaching British consumers, cut off their funding and hold those who facilitate their activities accountable.
“Our five-point plan sets out practical, targeted measures that would strike at the heart of the black market and better protect consumers.”
