Key Moments:
- Britain’s illegal gambling stakes have surged to £16.6bn, more than tripling since 2019
- The legal gambling market share has fallen from 97% in 2019 to 92% in 2025
- BGC warns shifting regulations and enforcement may push consumers to unlicensed operators
Illegal Gambling Activity Sees Significant Growth
A recent analysis conducted by H2 Gambling Capital highlights a dramatic escalation in Britain’s illegal gambling sector, with total stakes now at £16.6bn. According to the findings, the size of the black market has now tripled since 2019 and has doubled over the past two years alone.
The report, presented by the Betting and Gaming Council (BGC), underscores that the share of legal gambling has diminished from 97% in 2019 to 92% in 2025 as more aggressive and visible offshore betting sites draw away customers from regulated operators.
Regulatory Pressure and Market Shifts
The study shows that offshore betting volume rose from about £5bn in 2019 to £16.6bn in 2025. The largest uptick occurred between 2023 and 2025, when both stakes and operator profits experienced a twofold increase.
Separate findings from WARC indicate that unlicensed firms now represent nearly half of all UK gambling advertising spend, and this share is projected to surpass 50% within two years. The increase in unregulated activity is associated with higher taxes, stricter regulations, and newly proposed financial risk checks, creating a less competitive environment for legal platforms and offering an opportunity for illegal operators to expand their presence.
Industry and Consumer Protection Concerns
The BGC has raised alarms that the growth in illegal gambling not only impacts government tax revenue – estimated at £4bn annually from the sector – but also presents a risk to consumer safety. According to the BGC, unlicensed gambling firms do not pay taxes or provide player protections required from regulated businesses.
Grainne Hurst, Chief Executive of the BGC, 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 council has cautioned policymakers that if the regulated sector becomes more difficult or less competitive for consumers, bettors are likely to migrate to less safe, unregulated options. Hurst stated, “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.”
She further emphasized the need for risk assessments to be “genuinely ‘frictionless’ or not introduced at all – because anything else will push customers out of the regulated market.”
The BGC continues to urge that harm reduction initiatives should be carefully balanced to avoid further bolstering the illegal market and jeopardizing an industry that contributes significantly to the nation’s tax base.
Market Snapshot
| Year | Estimated Illegal Gambling Stakes (£bn) | Legal Gambling Market Share (%) |
|---|---|---|
| 2019 | 5 | 97 |
| 2023 | Not specified | Not specified |
| 2025 | 16.6 | 92 |
- Author
Daniel Williams
