BGC Urges Tech Platforms to Address Black Market Gambling Threat

UK industry trade body the Betting and Gaming Council (BGC) has written an open letter to technology platforms urging them to address the threat of illegal gambling operators.

In the letter, BGC Chief Executive Grainne Hurst warned unlicensed operators are increasingly using social media platforms, search engines, messaging services and digital advertising networks to entice players, including those who have self-excluded from gambling websites.

What the BGC wants exactly

The BGC has called for these companies to make a number of changes. These include: identifying and removing illegal gambling advertising; investing more resources into disrupting the black market; strengthening cooperation with regulators and law enforcement; increasing transparency around enforcement activity; and working to prevent vulnerable players being targeted by unlicensed operators.

Hurst wrote:

"The harmful black market is growing at an alarming rate, and illegal operators are exploiting online platforms to target British consumers. Technology companies have some of the most advanced tools, data and expertise in the world. The question is no longer whether this problem can be addressed, but whether enough is being done.

"Every consumer drawn towards an illegal operator is being pulled away from the protections of the regulated market. We are calling on technology platforms to match the scale of the threat with the scale of their response."

The responsibility of social media platforms in particular is in the spotlight in the UK at the moment, with the government announcing this week a proposed social media ban for under-16s and further restrictions for people aged 16-17, including a potential curfew.

This could at least protect underage gamblers from being targeted by unlicensed operators via social media, but those operators could still advertise on the platforms.

BGC increasingly vocal

The BGC has been increasingly vocal about the threat of the black market in recent months; this has been partially as an argument against increased regulation such as the rise in remote gaming duty that was enforced in April, from 21% of gross gaming yield (GGY) to 40%, with the BGC arguing this will push more players towards the black market.

However, various data has either been commissioned or published by the BGC to illustrate its point. Research from market intelligence firm the World Advertising Research Centre (WARC) has showed unregulated firms account for close to half of all UK gambling advertising spend.

Separately, an H2 Gambling Capital study found the annual amount staked with illegal gambling operators from UK-based players has more than tripled to £16.6 billion since 2019. According to the study, the amount staked on offshore betting has grown from £5 billion in 2019, with both stakes and operator profits doubling between 2023 and 2025.

The data also shows a lower proportion of bets are being placed on regulated sites, falling from 97% of bets to 92% in 2025. Offshore GGY is estimated to have increased to £685 million for 2025, up from £200 million in 2019.

It is difficult to quantify the exact percentage of the UK online gambling market this accounts for, as regulator the Gambling Commission publishes data in financial rather than calendar years.

Illegal stakes rising

A further study by H2 Gambling Capital found black market stakes are set to almost double from £16.6 billion for 2025 to £33 billion by 2028. In the regulated market, turnover for remote betting in 2024/25 was £138.52 billion, meaning the illegal market could grow to 24% of the size of the regulated market.