As the betting industry evolves, so too does its darker counterpart—the black market. Operating outside the bounds of regulation, this shadow economy poses significant risks to players, operators, and governments alike. From financial crime to compromised player protections, the black market undermines the integrity of the legal betting sector.
What is the black market?
An online gambling black market occurs when customers choose knowingly or otherwise to gamble with a provider which is not licensed in the jurisdiction where the customer is, and where a licence is required by law to either accept customers or to ‘target’ them with advertising and localised content or payment methods.
This page brings together expert analysis, research, and practical recommendations to better understand the scale of the black market and its impact on the future of the industry.
The scale of the black market
New industry studies from Frontier and Regulus shed a light on the scale of the black market in the UK.
lost to the UK Treasury over a five-year Parliamentary term with £4.3bn in stakes being placed in the UK with black market operators.
are more than twice as likely to be black market users as those over 35, being exposed to fewer player protections.
of gambling in some European countries can be black market activity, Regulus notes
The Black Market with Barry Gibson
In this exclusive interview, industry veteran and Entain Chair, Barry Gibson, uncovers the growing threat of the black market. Through real-world examples and expert insights, this interview underscores the need for regulatory action to counter the growing threat of underground gambling.
Watch the full video hereTackling online gambling black markets
A Regulus study, backed by Entain
An Entain-backed report from Regulus Partners flags that the black market can reach up to 60% of gambling activity in some European countries where product is restricted. It points to five highly achievable measures for policy makers and regulators to adopt which together could help greatly reduce the scale of the black market threat:
- Blocking payments to black market operators through payment services providers to force them out of the market
- Restricting ability to advertise on mainstream and social media (which could be done using the new Online Safety Act)
- Blocking the IP addresses of operators
- Stepping up criminal enforcement to tip the risk-reward balance against unlicensed operators doing business
- Creation of a public blacklist to educate consumers
Maintaining well-balanced regulatory frameworks to enable licensed operators to remain competitive, while taking effective enforcement against the black market is the best way to protect customers, recover lost tax revenue and crackdown on operators in unregulated markets.
In Britain, historically there has been a low level of black market participation. However, countermeasures have not been used to their full potential despite an estimated black market of £2.7 billion in staking terms. This figure is likely to be conservative and is highly likely to grow.
The ability of regulators and law enforcement to restrict the growth of the black market has been given a significant boost by the recent introduction of the Online Safety Act. It is vital for both consumer safety and protecting taxes that these new powers, as well as under-utilised existing powers, are used to mitigate the growth of black-market gambling in Britain as consumer frictions and therefore black market participation increase. In particular, DCMS should pass secondary legislation to classify illegal gambling as 'priority illegal content' for the purposes of the Online Safety Act, thereby requiring search engines and social media sites to take proactive steps to stop consumers seeing content relating to black market sites.
Taking on the black market operators should be the number one priority for policymakers around the world. We’ll protect players, tackle crime and raise money to spend on nurses, schools, and roads. It would ensure that customers get greater protection from playing with fully regulated and legitimate operators.
Download the Regulus Partners Report
Regulus Partners Black Market Analysis 2024
As the betting industry continues to evolve, so too must our approach to tackling the black market. This unregulated, dangerous sector threatens players, operators, and governments, undermining the integrity of the entire industry. Through expert insights and detailed research, it’s clear that stronger regulation, increased awareness, and collective action are essential to combat this growing threat.
The conversation doesn’t end here—it's time for the industry, policymakers, and consumers to work together to ensure a safer, more transparent betting landscape for all. The future of the industry depends on it.