Illegal operators are approaching a majority share of UK igaming and gambling advertising spend, according to analysis cited by the Betting and Gaming Council, with projections indicating the unregulated sector could overtake licensed firms within the next two years.
Data from WARC suggests the total UK gambling advertising market will reach £1.9 billion by October 2026. Within this, licensed igaming operators are expected to reduce spend by 9.2 percent to approximately £1.1 billion, while unregulated operators are forecast to increase expenditure by 32 percent over the same period.
The findings indicate a shift in market dynamics, with licensed operators having accounted for more than 80 percent of advertising spend in previous years, compared to just over half currently. On current trends, the share attributed to illegal igaming operators is expected to exceed that of regulated firms by 2028.
The analysis has been published as policymakers continue to review gambling advertising frameworks in the UK. Industry stakeholders have raised concerns that increased regulatory pressures, including potential financial risk checks and higher taxation, may impact the competitiveness of licensed igaming operators.
The Betting and Gaming Council stated that attention should focus on the source of advertising activity, highlighting the risks associated with unregulated igaming operators, which are not subject to the same consumer protection standards as licensed firms. The data underscores ongoing challenges in maintaining channelisation within the regulated market as advertising dynamics evolve.
Grainne Hurst, Chief Executive of the Betting and Gaming Council, said: “This should ring alarm bells in Westminster.
“The real question is whether advertising is coming from regulated operators, who are held to strict standards, or from the harmful, illegal black market, which operates entirely outside the rules.
“Targeting licensed operators when their advertising spend is already falling will not reduce overall advertising; it will simply bolster the harmful illegal black market, which is aggressively targeting UK customers.
“The Government must go further and faster to clamp down on the black market before it is too late.”
Global marketing intelligence firm WARC said: “While ad spend within the UK’s gambling sector is set to rise to £1.9bn this year, WARC research has found that there is a two-speed market at play, with almost all growth now being driven by unlicensed firms.
“These operators are predominantly based overseas and are paying ever-increasing amounts to reach UK consumers online via search and social media. Sponsorship, too is heavily leveraged by unregulated firms who are, collectively, set to account for over half of sponsorship ad spend in the gambling sector next year.
“Most significantly, unlicensed operators are on course to account for over half of all ad spend within the gambling sector by 2028; a sign of the tectonic shift currently occurring within the market.”
