A new YouGov poll commissioned by the Betting and Gaming Council (BGC) suggests that almost a third of regular punters could turn to unlicensed gambling operators if government tax reforms significantly impact offers from regulated igaming firms. The findings come as the UK Treasury continues its consultation on changes to the way online betting and gaming are taxed.
According to the poll, 28 per cent of respondents said they would be likely to consider using unregulated sites if promotions and odds from licensed operators were reduced. The research also found that 14 per cent of bettors have already used black market sites, while nearly a third admitted they would not be confident identifying an unregulated platform. The BGC estimates that around 1.5 million UK customers currently use the gambling black market, with annual stakes potentially reaching £4.3 billion. Industry stakeholders have raised concerns that further tax burdens on igaming operators could erode regulated market protections, diverting consumers to offshore alternatives that do not contribute to UK sport, tax revenues, or safer gambling initiatives.
Betting and Gaming Council CEO Grainne Hurst said: “Punters are clear, get the balance on tax and regulation wrong and you hand a competitive advantage to the black market where operators pay no tax, contribute nothing to British sport, and offer no safer gambling protections.
“The gambling black market is growing and actively targeting UK customers. Any tax rise, whether on betting or gaming, makes that offer more attractive and puts more players at risk.
“Any tax hike would be catastrophic. This would put thousands of jobs and millions in investment at risk, while threatening the future of all sports that rely on regulated betting for funding – from racing and football to rugby league, darts and snooker.”
“Balanced regulations and a stable tax regime are the best defence against the black market.”
“This is a wake up call for Government, punters have been loud and clear, hit them with further taxes and they will walk away from the legal, regulated market, straight to the black market, triggering a spiral of decline which raises less tax, and undermines player protections.”