Betting and Gaming Council has cited new research indicating that stakes placed with illegal gambling operators in the UK have risen to £16.6bn in 2025, more than triple the level recorded in 2019.
According to analysis conducted by H2 Gambling Capital, offshore betting activity has increased from approximately £5bn in 2019 to £16.6bn in 2025, with both stakes and operator profits doubling between 2023 and 2025. The report also found that the proportion of gambling activity taking place through regulated channels has fallen from 97% in 2019 to 92% in 2025.
The figures have prompted renewed debate within the UK betting and iGaming sector over the potential impact of regulatory changes and taxation on channelisation rates. The BGC stated that increased compliance requirements, higher tax burdens and proposed financial risk assessments could affect the competitiveness of licensed operators and encourage consumers to use unregulated sites.
Separate analysis from WARC found that illegal operators account for a growing share of UK gambling advertising activity online, with the BGC warning that increased visibility of offshore brands could further strengthen the black market.
The trade body reiterated that unlicensed operators operate outside UK regulatory frameworks and do not provide the same consumer protections required of licensed betting and iGaming companies. The BGC also highlighted the economic contribution of the regulated sector, which it said supports more than 109,000 jobs, contributes £6.8bn to the UK economy annually and generates £4bn in tax revenue.
The latest data adds to ongoing industry discussions around balancing consumer protection measures with maintaining the competitiveness of the regulated betting and iGaming market in the UK.
Grainne Hurst, Chief Executive of the Betting and Gaming Council, said: “What we are seeing is a harmful black market scaling up at pace.
“Illegal operators are becoming more sophisticated, more visible and more aggressive in how they reach UK customers. That should concern anyone who cares about consumer protection.
“The choice for policymakers is clear. If the regulated sector becomes harder to use or less competitive, customers will not stop betting, they will simply go elsewhere.
“That is why financial risk assessments must either be genuinely ‘frictionless’ or not introduced at all – because anything else will push customers out of the regulated market.”
