The True Scale of UK Black Market Gambling: A Growing National Concern

UK Black Market Gambling: The £4.3 Billion Threat and the Regulatory Dilemma.

The True Scale of UK Black Market Gambling in Great Britain has become increasingly significant. According to a study by the Betting and Gaming Council (BGC), gamblers bet approximately £2.7 billion annually through hidden-market websites1. This figure represents about 2% of the £128 billion wagered last year with licensed online gambling firms1.

The BGC’s report, authored by Frontier Economics, estimates that 1.5 million British people are placing bets with illicit operators1. However, the BGC believes this estimate is conservative and suggests that unlicensed bets could be worth up to £4.3 billion when considering in-person gambling, such as bets or poker games between friends1.

The Risks of Stricter Regulation

The BGC argues that stricter regulation of the licensed sector could inadvertently drive more people to illegal sites. Grainne Hurst, the BGC’s chief executive, emphasises that simply giving the Gambling Commission more powers won’t solve the problem entirely. “Enforcement is only part of the solution,” she states. Hurst warns that calls from “anti-gambling

The £4.3 Billion Threat and the Regulatory Dilemma

prohibitionists” for tougher regulation would only push more people towards illicit sites.

The Role of the Gambling Commission

The Gambling Commission has been actively tackling unlicensed gambling. Since April, the commission’s specialist hidden-markets unit has issued over 750 cease and desist notices and referred over 78,000 URLs to Google for removal1. Despite these efforts, the debate continues on how best to balance regulation and enforcement to protect individuals from gambling-related harm while addressing the risks posed by the hidden market1.

Political Influence and Future Policies

The change of government has left many of the measures proposed in the previous government’s white paper in limbo. This has led to a scramble among lobbyists, including the BGC, to influence the government’s next steps1. Labour, which has strong ties to the gambling industry, is yet to outline its policy on several hotly contested issues, including a cap on digital slot machine stakes and a £100 million mandatory levy on the industry to fund research, education, and treatment for gambling-related harm1.

The Path Forward

As the government and the Gambling Commission continue to navigate this complex issue, it is clear that a balanced approach is necessary. While enforcement is crucial, it must be complemented by thoughtful regulation that does not inadvertently drive gamblers towards the hidden market. The ongoing debate highlights the need for a comprehensive strategy that addresses both the risks of illegal gambling and the protection of individuals from gambling-related harm.

What are your thoughts on the balance between regulation and enforcement in the gambling industry? How do you think the government should proceed to tackle this issue effectively?