Illegal operators were estimated to have taken up to £60m in bets during the Cheltenham Festival, highlighting the continued presence of the igaming black market in the UK, according to figures referenced by the Betting and Gaming Council (BGC).
The four-day racing event is one of the largest in the British betting calendar, with total wagering on Cheltenham widely reported to reach around £1bn. Based on analysis suggesting that approximately 6% of all betting stakes in Britain are placed with unregulated providers, the BGC indicated that a significant share of this activity may be shifting towards illegal igaming and betting operators.
Across the wider market, annual horse racing betting turnover in Britain is estimated at approximately £11bn, with around £8bn attributed to regulated online igaming and betting activity. The BGC stated that the proportion of betting taking place outside the regulated igaming framework represents a growing concern, particularly during high-profile events that attract increased wagering volumes.
The trade body noted that changes to the regulatory and fiscal environment could influence player behaviour, including tax increases on operators and the introduction of financial risk checks that may require customers to provide personal financial information. According to the BGC, these factors could contribute to some consumers seeking alternatives outside the regulated igaming market.
Licensed igaming and betting operators in Britain are required to comply with regulatory measures, including age verification, anti-money laundering controls and safer gambling protections. By contrast, unregulated operators are not subject to these requirements.
The BGC also highlighted the broader economic contribution of the regulated igaming and betting sector, which it said supports more than 109,000 jobs, contributes £6.8bn to the UK economy and generates approximately £4bn in tax annually, alongside providing funding for horseracing.
The organisation stated that addressing illegal igaming activity remains a priority, particularly during major sporting events, as regulators and industry stakeholders seek to maintain channelisation towards licensed operators.
Grainne Hurst, Chief Executive of the Betting and Gaming Council, said: “Cheltenham is the biggest week of the year for racing fans and millions placed bets safely with regulated operators.
“But the criminal, harmful black market also tried to cash in, targeting punters with illegal betting that offers none of the protections provided in the regulated sector.
“Rising taxes and increasingly intrusive checks will only make it harder for legitimate operators to compete.
“The priority must be keeping punters in the regulated market where protections are in place, rather than driving them towards harmful unregulated operators.”
