Black market: a threat to the UK
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20 Apr 2025 •
Reading time: 3 minutes The black market in UK gambling is growing at an alarming rate, with around £4.3 billion wagered each year on unregulated platforms. This parallel economy represents around 3% of the total gambling market and exposes 1.5 million gamblers, mainly young adults, to financial and addiction risks. Despite the efforts of the authorities to combat this phenomenon, notably with the mass removal of illegal sites and law enforcement measures, the impact of the black market remains a cause for concern. Experts are calling for a more balanced approach, pointing out that excessive regulation of legal operators could inadvertently fuel this underground economy.
The UK gambling market, one of the most regulated in the world, is facing a worrying rise in the black market, an increasingly large and difficult to control parallel sector. Although the authorities are trying to curb this phenomenon, colossal sums are still gambled every year on illegal platforms, escaping all forms of regulation, taxation and control.
A parallel economy worth £4.3 billion
A recent report by Deal Me Out reveals that up to £4.3 billion is wagered each year on unregulated gambling platforms in the UK. This represents around 3% of the total gambling market, underlining the scale of this shadow economy.
According to the report, around 1.5 million Britons are involved in these illegal activities, either online or in underground establishments. This results in an estimated tax loss of £335 million over a five-year period, depriving the UK Treasury of essential resources to fund public services such as health and education.
Young people, the main targets of the black market
Young adults are particularly vulnerable to illegal operators. Around 20% of players aged between 18 and 24 use unregulated platforms, often attracted by tempting bonuses, better odds and simplified registration. The use of virtual private networks (VPNs) and secure messaging also facilitates access to these prohibited sites.
This is a worrying trend, as it exposes an entire generation to increased risks of addiction and financial loss, without the protection offered by licensed operators.
Black market promotion channels
Illegal operators use a variety of channels to promote their services, including social networks, streaming platforms and affiliations with influencers. Around 22% of players surveyed have been exposed to ads for unregulated sites on social networks, while 10% have seen them on streaming platforms.
This aggressive marketing strategy enables illegal operators to circumvent the restrictions imposed on licensed operators, thereby increasing their visibility and attractiveness to players.
The limits of law enforcement
Although the UK Gambling Commission has stepped up its efforts to combat the black market, the results remain limited. Since April, more than 750 cease and desist notices have been issued, and more than 78,000 URLs have been reported to Google, of which 50,000 have been removed. However, these measures are not enough to stem the growth of the black market.The report warns that overly strict regulations on licensed operators could inadvertently drive more players into the black market. A balanced approach is needed to protect players while maintaining a competitive regulated market.