The Betting and Gaming Council (BGC) has warned that illegal gambling operators could take up to £10 million in wagers during this weekend’s Betfred Derby Festival, including an estimated £5 million on the Derby itself.
The industry body said criminal operators are expected to target racing fans during the two-day meeting at Epsom, one of the most prominent events in the British horseracing calendar.
First run in 1780, the Derby remains the centrepiece of the UK flat racing season and attracts significant betting activity from consumers across the country.
According to the BGC, unlicensed operators are seeking to capitalise on the popularity of major sporting events by offering gambling products outside the regulated market.
The warning follows recent analysis from WARC, which found that unregulated operators account for almost half of all UK gambling advertising spend. Separate research from H2 Gambling Capital forecasts that stakes placed with illegal operators in Britain could increase from £17 billion this year to more than £33 billion by 2028.
The BGC argued that recent tax increases on betting operators, together with proposed financial risk checks that could require some customers to provide financial documents such as bank statements, may affect the competitiveness of licensed operators relative to unregulated alternatives.
Licensed betting operators in Britain are required to comply with regulatory obligations including age verification, anti-money laundering controls and safer gambling measures. Illegal operators are not subject to these requirements.
The BGC said the regulated betting and gaming sector supports more than 109,000 jobs, contributes £6.8 billion to the UK economy and generates more than £4 billion in annual tax revenue. The sector also provides funding to British horseracing through sponsorship, levy payments and other commercial arrangements.
Grainne Hurst, Chief Executive of the Betting and Gaming Council, 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.”
