UK Illegal Gambling Market Climbs to £16.6bn After Tripling Since 2019, Report Says

A new report, H2 Gambling Capital, has revealed that Britain’s illegal gambling market has grown sharply, with stakes reaching £16.6bn. The report, shared by the Betting and Gaming Council (BGC), shows how much the black market has expanded, more than tripling since 2019 and doubling in just the last two years.

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Offshore betting has become more aggressive and more visible, while fewer bets are being placed on regulated sites. The share of legal gambling has dropped from 97% in 2019 to 92% in 2025.

The BGC warns that this rise is not only about money but also about safety, since unlicensed operators pay no tax and offer none of the protections required of licensed firms.

Higher taxes and tighter rules linked to black market rise

The H2 Gambling Capital research found offshore betting rising from about £5bn in 2019 to £16.6bn in 2025. The steepest increase came between 2023 and 2025, when both stakes and operator profits doubled.

Separate analysis by WARC shows illegal operators now account for nearly half of all UK gambling advertising spend, with that share expected to become the majority within two years.

The rise has been linked to higher taxes, tighter rules, and new proposals for financial risk checks that make the regulated market less competitive. Illegal operators have taken advantage, becoming more visible online and more aggressive in reaching customers.

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Grainne Hurst, Chief Executive of the BGC, said,  “What we are seeing is a harmful black market scaling up at pace. Illegal operators are becoming more sophisticated, more visible and more aggressive in how they reach UK customers. That should concern anyone who cares about consumer protection.”

The BGC has also warned that if the regulated sector becomes harder to use, customers will not stop betting but will move to unsafe sites. As Hurst explained, “the choice for policymakers is clear. If the regulated sector becomes harder to use or less competitive, customers will not stop betting, they will simply go elsewhere.”

She added that financial risk assessments must be “genuinely ‘frictionless’ or not introduced at all – because anything else will push customers out of the regulated market.” 

The council stresses that efforts to reduce harm must be balanced carefully to avoid strengthening the illegal market and ruining an industry that raises £4bn in tax each year for the UK.

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