Illegal lotteries: the UK takes a tougher stance
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27 May 2026 •
Reading time: 4 minutes
The UK gambling regulator intends to step up its efforts against illegal lotteries, at a time when charitable lotteries are experiencing unprecedented growth in the UK.
A booming legal market, but already under strain
In the UK, charity lotteries have generated over £1 billion in gross gaming revenue for the second consecutive year. This result confirms the growing importance of these lotteries in British gambling habits. On the one hand, legal charity lotteries are attracting an increasingly wide audience and generating significant revenue. On the other hand, unauthorised operators continue to run lotteries outside the regulatory framework. For Ian Angus, Director of Policy at the UK regulator, this situation calls for a firmer response.
Nine million adults involved in charity lotteries
Data from the UK Gambling Survey highlights the scale of the phenomenon. Between July and October last year, around 17% of adults in the UK took part in a charity lottery. That equates to nearly nine million people. This figure makes charity lotteries the second most popular form of gambling in the country. They are ahead of traditional betting, which attracted 10% of adults over the same period. Only the National Lottery remains ahead, with a participation rate of 32%.
These figures explain why the sector is attracting so much attention from the authorities. Charity lotteries are no longer a marginal segment. They now constitute a major pillar of the British gambling landscape. Their growth can benefit recognised organisations, but it also creates an environment conducive to copycats, fraudsters and unlicensed operators.
For consumers, the difference between a legal lottery and an illegal one is not always clear. It is precisely this ambiguity that the authorities wish to reduce. When an unauthorised offer resembles a legitimate lottery, the risk of confusion increases. And with it, the risk of financial loss, misleading practices or a lack of recourse in the event of a problem.
The black market in the regulator’s sights
Ian Angus warned that illegal operators continue to pose a significant risk to consumers. In his view, if these activities are not brought under control, they could also damage the reputation of legitimate charities.
Charity lotteries rely heavily on trust. Participants agree to play because they believe they are supporting a worthy cause, association or organisation. If illegal operators exploit this image, they can undermine the credibility of the entire sector.
The regulator therefore wants to gain a better understanding of how the black market operates. This priority is not merely about enforcement. It also aims to map out illegal practices, identify the structures that enable them, and assess the real risks to players.
£26 million to strengthen public action
The regulator is to receive £26 million in funding from the UK Treasury over three years. This funding is intended to support its enforcement efforts and enable it to modernise certain processes.
According to Ian Angus, these additional resources will help, in particular, to automate essential tasks. The aim is to better analyse the structure and activity of the black market. For a regulator faced with illegal operators who are sometimes agile, scattered and difficult to identify, this automation can become a strategic tool.
Legitimate operators urged to be more vigilant
The growth of legal charity lotteries also places greater responsibilities on licensed operators. Their popularity gives them significant visibility, but also exposes them to increased scrutiny.
The regulator expects them to comply fully with their obligations. It also aims to provide them with tools to better understand regulatory requirements. It is within this framework that a new support service has been launched, aimed at licence holders. This service, officially launched earlier this year following a successful pilot programme in 2024, offers operators a dedicated point of contact. It is designed to provide technical assistance, regulatory advice and faster responses to enquiries.
The UK faces a paradox. Charity lotteries are enjoying record success and attracting millions of participants. But this growth is also attracting illegal operators, who can pose a threat to consumers and damage the reputation of legitimate operators. The UK regulator now wants to equip itself to better understand and combat this black market.