The trade body’s letter called for improved detection techniques and cross-platform information sharing as big tech features in DCMS Illegal Gambling Taskforce.
The Betting and Gaming Council (BGC), Britain’s leading gambling industry trade body, has called on the country’s major technology platforms to take robust action against the proliferation of black market gambling operators leveraging digital channels to reach UK consumers.
The warning, delivered through an open letter published on Tuesday and signed by BGC chief executive Grainne Hurst, highlighted growing concerns over illegal gambling adverts on social media, search engines, messaging services and digital advertising networks.
Market research from H2 Gambling Capital estimates that stakes placed with illegal sites could expand from approximately £17 billion currently to £33 billion within five years.
Alarming growth of black market gambling
The BGC stressed that illegal operators were increasingly exploiting tech platforms to access UK users, including those who had self-excluded or were actively seeking help for gambling problems.
These unlicensed sites are not subject to the regulatory safeguards enforced within the UK’s licensed gambling sector.
The body flagged that illegal operators do not undergo customer protection checks, contribute to mandated research and treatment levies, or remit UK taxes.
Hurst cited Analysis from advertising insights firm WARC, which indicated that illegal gambling advertisers constituted almost half of all gambling advertising expenditures in Britain. Forecasts have suggested that black market operators may surpass licensed operators’ advertising presence by 2028.
Calls to action from technology companies
In its letter the BGC urged tech firms to heighten their responsibility and treat illegal gambling as an urgent consumer protection challenge.
The letter advocated for proactive identification and removal of illegal gambling advertisements prior to user exposure. It also called for increased investment in AI and data anlytics to tackle black market sites, and enhanced collaboration between all the relevant parties.
“We no longer question if this problem can be addressed; instead, we question if enough is being done,” Hurst said.
The Gambling Commission recently released analysis that highlighted the difficulty in tracking illegal gambling in the UK due to a rise in VPN usage. While a 30% uplift had been applied to account for VPN-hidden traffic, recent data suggested an even larger proportion of illegal gambling activity may be hidden.
‘Inaction’
Hurst acknowledged the difficulties posed by differences between paid advertising and user-generated content but dismissed complexity as a justification for inaction.
“But complexity cannot become an excuse for inertia,” she said.
The Department of Culture, Media and Sport (DCMS) also recently established a cross-body Illegal Gambling Taskforce to tackle the growing threat. It is due to meet twice a year.
Hurst said that some of the tech companies she has targeted in her letter participate in the Illegal Gambling Taskforce, “yet as the black market continues to grow, there remains little visible evidence that collective action is matching the scale of the threat”, she added.
The BGC highlighted that, without improved detection techniques and cross-platform information sharing, policing illicit gambling advertisements would remain severely constrained.
Expansion and World Cup
The BGC’s open letter positioned the issue not solely as an industry concern but as a broader public policy and consumer protection imperative requiring integrated action from government, regulators, tech platforms and the gambling industry.
The council warned that without concerted and transparent responses from digital platforms, the illegal gambling market would continue to evolve and expand unchecked.
Last week, BGC also warned that the illegal black market could bank almost £200m 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 make it harder for regulated operators to compete, strengthen the hand of the black market,” Hurst said.
The body has said it will collaborate with any platform committed to protecting consumers and combating illegal gambling operators.
Similar efforts to curb black market proliferation have been made across the sector. Last month, tier one operator Entain called on the Independent Football Regulator (IFR) to stop its clubs from accepting gambling sponsorships from operators not licensed in the UK.
This could help reduce the exposre of unlicensed operators in the UK, especially among young men.
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.