A recent study conducted by the International Federation of Horseracing Authorities asserts that UK black market gambling is up 522%.
The British Horseracing Authority (BHA) has raised concerns over a substantial increase in visits by UK bettors to unlicensed bookmakers offering bets on horse racing.
According to a report by the International Federation of Horseracing Authorities (IFHA) on anti-illegal betting and related crime, as cited by Racing Post, there has been a 522% increase in unique customers visiting 22 unlicensed betting sites between August 2021 and September 2024.
This growth far outstrips the 49% rise in unique visitor traffic to 10 licensed betting platforms over the same period.
In terms of total visitor traffic from the UK, unlicensed betting websites saw a 131% rise since August 2021, whereas traffic to legal bookmakers increased by only 25%.
The report further emphasised that the 22 unlicensed operators studied do not represent the full extent of the black market, suggesting that the actual scale of unregulated gambling is even larger.
The IFHA noted that while there is no direct evidence linking this surge in black market betting to recent regulatory changes in the UK, the findings align with global trends.
These show that excessive regulation of legal gambling markets can drive consumers to unlicensed operators.
The British government’s 2023 gambling white paper, which proposed enhanced financial risk checks, has been cited as a potential contributor to this trend.
Both the racing industry and bookmakers have warned that these measures could push more bettors towards unregulated markets.
Market changes impact results
The impact of these regulations has already been observed in betting turnover figures.
Data from the Gambling Commission (UKGC) published in December 2024 showed that online betting turnover on British horseracing had declined by £1.6bn in the past two years — a £3bn drop when adjusted for inflation.
Additionally, a 2023 survey conducted by the BHA found that 10% of racing bettors were already engaging with the black market.
BHA’s acting chief executive, Brant Dunshea, acknowledged the Gambling Commission’s efforts to enforce regulations but emphasised the need for balanced policies.
He stated that the findings would be shared with the government, advocating for regulatory approaches that encourage bettors to stay within the legal market.
Dunshea also stressed the importance of ensuring that responsible gamblers are not unnecessarily disrupted by overly strict rules.
The IFHA report also highlighted a major spike in unlicensed betting activity around April 2024, attributing it largely to a single operator.
This operator benefitted from significant referral traffic generated by affiliate marketing sites targeting individuals registered with the UK’s Gamstop self-exclusion program.
UKGC continues to restrict market
As part of its broader strategy to improve consumer protection and ensure fairness in the gambling industry, the UKGC has introduced significant changes to its regulations for 2025.
These reforms focus primarily on strengthening consumer control and increasing transparency.
One of the key changes is the introduction of mandatory deposit limits. Beginning on 31 October 2025, all gambling operators will be required to prompt customers to set deposit limits before making their first deposit.
This measure aims to encourage responsible gambling habits and help players manage their spending more effectively. Additionally, gamblers will have the ability to review and alter their deposit limits at will.
To reinforce responsible gambling practices, operators must also send reminders every six months, urging customers to review their deposit limits and account details.
This move is intended to keep responsible gambling at the forefront of player engagement and ensure that consumers have ongoing opportunities to control their gambling behaviour.
These new requirements build upon existing best practices and will be standardised across the entire gambling industry.
Other measures include affordability checks and stricter gambling limits, all of which could be driving the use of non-licensed gaming alternatives.