
Illegal gambling advertising spend is on course to outpace the regulated betting industry in the UK, which is concerning the Betting and Gaming Council (BGC) CEO Grainne Hurst.
A new independent report published by the World Advertising Research Center (WARC) shows a serious shift towards the unlicensed operators, and Hurst is worried about the driving force behind ad spending.
A champion of the regulated sphere, Hurst has spoken out on numerous occasions over the past few months about the inexorable rise of black market operators. But this time, she hasn’t held back in describing just how much of a threat rogue sites pose to the country.
Hurst was quick to label the UK as being at the cusp of a “tipping point” with regards to gambling ad spend. Although she pointed to recent forecasts suggesting that gambling ad spend could hit £1.9 billion by October, Hurst claimed this actually “masked” what is really going on behind the scenes.
Figures pulled up by Hurst in WARC’s report showed the unregulated sector’s spending is projected to grow by 32% and it will exceed £1 billion within the next two years. In contrast, the regulated industry is retreating, and ad spending this year is expected to drop by 9.2% to £1.1bn.
And Hurst believes this should send “alarm bells ringing” around Westminster, given the unregulated sphere could surpass licensed operators. She said:
“This should serve as a wake-up call to policymakers across the House. Just a few years ago, licensed operators accounted for more than 80% of gambling advertising spend.
“That share has fallen to just over half and is projected to drop below 50% within the next two years. The direction of travel is clear: regulated firms are scaling back their advertising, while the harmful black market grows rapidly. That should give policymakers pause.”
Although the tax hikes announced in the November budget forced regulated operators to rethink their plans and reduce ad spending, there is no disguising the underhanded tactics used by rogue operators to coax bettors to sign up.
In a report recently commissioned by Flutter, unlicensed sites failed to carry out basic checks, and punters could place wagers using strange pseudonyms.
The United Kingdom Gambling Commission (UKGC) have inevitably taken a dim view. Earlier this year, the body’s Executive Director, Tim Miller, used a keynote speech to reveal that the government had allocated an extra £26 million to the Commission to give them greater protection and strengthen enforcement against black market operators.
Meanwhile, the WARC figures indicated a divergence, where, by 2027, unregulated ad investment will be nearly four times higher than during the pandemic.
Apart from pointing to the involvement of unlicensed betting companies sponsoring Premier League teams, Hurst noted their increasing visibility across digital channels, with search and online display accounting for the largest share of spend.
Hurst insists no time can be wasted in taking action. And she has called on the government to be more decisive, adding:
“If current trends continue, Britain will soon reach a point where most gambling advertising no longer comes from within the regulated system.
“This is not a safer market. It is one where consumers are exposed to operators with no safeguards, no accountability, and no protections. The government must now go further and faster to clamp down on illegal operators flooding advertising channels before they overwhelm the regulated market.”
+18 | Please gamble responsibly | Commercial content | T&Cs apply GambleAware.com