The Betting and Gaming Council (BGC), the primary trade body for the gambling industry in Britain, has urged major technology companies to take urgent measures against the rise of black market gambling operators that are increasingly using digital channels to reach consumers in the UK. An open letter published on Tuesday and signed by BGC chief executive Grainne Hurst outlined serious concerns regarding illegal gambling advertisements on various platforms, including social media, search engines, messaging services, and digital advertising networks.
According to market research from H2 Gambling Capital, stakes placed with illegal gambling sites could rise from around £17 billion to £33 billion in just five years.
The BGC pointed out that illegal operators are exploiting these tech platforms to reach UK users, including individuals who have opted for self-exclusion or are actively seeking help for gambling-related issues. These unlicensed websites do not adhere to regulatory safeguards that are mandatory in the UK’s licensed gambling sector.
Illegal operators do not conduct necessary customer protection checks, contribute to essential research and treatment levies, or pay taxes in the UK. Citing findings from advertising insights firm WARC, Hurst noted that illegal gambling advertisers accounted for nearly half of all gambling advertising spending in Britain. Forecasts suggest that by 2028, the advertising presence of black market operators could surpass that of licensed operators.
The BGC’s letter called on tech firms to take greater responsibility and treat illegal gambling as an important consumer protection issue. It suggested that these companies proactively identify and remove illegal gambling advertisements before they reach users. The BGC also advocated for increased investment in artificial intelligence (AI) and data analytics to combat black market operations and encouraged enhanced collaboration among stakeholders.
"We no longer question if this problem can be addressed; instead, we question if enough is being done," Hurst stated. The Gambling Commission recently released an analysis showcasing the challenges in monitoring illegal gambling in the UK, particularly due to a rise in VPN usage. Although a 30% increase was applied to account for traffic hidden by VPNs, recent findings indicate that a larger portion of illegal gambling activity might be obscured.
Hurst acknowledged the challenges posed by the disparity between paid advertisements and user-generated content but dismissed complexity as an excuse for inaction. "But complexity cannot become an excuse for inertia," she stated.
In response to this growing concern, the Department of Culture, Media and Sport (DCMS) has launched a cross-body Illegal Gambling Taskforce aimed at addressing the issue, which will meet bi-annually. Hurst noted that some tech companies addressed in her letter are members of the Illegal Gambling Taskforce but expressed concern that visible collective action does not match the scale of the black market threat.
The BGC emphasized that without better detection methods and improved cross-platform information sharing, efforts to police illicit gambling advertisements would remain severely limited. The letter stressed that the problem is not just an industry concern but also a public policy and consumer protection issue that necessitates coordinated action from government, regulators, tech platforms, and the gambling industry.
The BGC warned that if digital platforms do not respond transparently and concertedly, the illegal gambling market will continue to grow unchecked. Recently, the BGC also indicated that the illegal black market could take in nearly £200 million during the World Cup. "At a time when illegal operators are already expected to take hundreds of millions of pounds in bets during the World Cup, policies that hinder regulated operators from competing will empower the black market," Hurst remarked.
The BGC has expressed its willingness to collaborate with any platform committed to consumer protection and tackling illegal gambling operators. Efforts to reduce black market proliferation have been ongoing, with last month’s call from tier one operator Entain urging the Independent Football Regulator (IFR) to prohibit clubs from accepting sponsorships from operators not licensed in the UK. This measure could help limit the exposure of unlicensed operators in the UK, particularly among young men.
