BLACK MARKET BETTING NEARS £17BN AS ILLEGAL GAMBLING TRIPLES SINCE 2019 AND DOUBLES IN TWO YEARS

The amount staked with illegal gambling operators has surged to £16.6bn, more than tripling since 2019 and doubling in just the past two years, according to new independent analysis.

The figures underline the growing scale and accelerating pace of the harmful illegal black market, raising fresh concerns about consumer safety.

Research by H2 Gambling Capital (H2GC) shows the scale and acceleration of the black market, with offshore betting growing from around £5bn in 2019 to £16.6bn in 2025. Growth has intensified sharply in recent years, with both stakes and operator profits doubling between 2023 and 2025.

At the same time, a lower proportion of bets are being placed on safe, regulated sites. The share of gambling happening legally has fallen from 97% in 2019 to 92% in 2025, with more money now flowing to unregulated operators.

The rise of the black market is being driven by a combination of factors, including increased regulatory pressure, higher taxation and the growing visibility of illegal operators online.

Separate analysis by WARC shows illegal operators now account for almost half of all UK gambling advertising spend, with that share expected to become the majority within two years.

The Betting and Gaming Council (BGC) warns this growing reach will only drive more customers towards illegal sites.

The findings come as the industry faces higher taxes and tighter rules, alongside the current proposed financial risk assessments adding further pressure on licensed operators.

The BGC says this risks making the regulated market less competitive and pushing customers towards unsafe alternatives.

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.”

The BGC reiterates that efforts to reduce harm must be carefully balanced to avoid unintended consequences that strengthen the illegal market, which operates outside UK rules, pays no tax and offers none of the protections required of licensed operators.

The regulated betting and gaming sector supports over 109,000 jobs, contributes £6.8bn to the UK economy and raises £4bn in tax each year, while also providing vital funding for British horseracing.