iGaming
NEW RESEARCH SHOWS UK BLACK MARKET GAMBLING IS RAPIDLY GROWING PROBLEM
New research suggests black market online gambling is a rapidly growing problem in the UK.
As pressure continues to mount in the UK for additional restrictions on licensed gambling operators, the Betting & Gaming Council (BGC) has published research commissioned from PwC showing black market gaming activity is a growing problem.
The findings are at odds with the UK Gambling Commission’s insistence that the problem of competition from unlicensed gaming operators is being exaggerated by the industry, and that introducing tighter restrictions won’t push more gamblers to unlicensed operators.
According to the BGC’s Review of Unlicensed Online Gambling in the UK, which was published earlier today and based on data collected in November and December 2020, the amount of money staked with unlicensed operators rocketed from £1.4B GBP to £2.8B year-on-year. The number of players thought to be using black market sites also surged from 210K two years ago, to 460K.
Commenting on the findings BGC chief executive, Michael Dugher, said:
“This new report by PwC is an impressive and comprehensive piece of work which demonstrates how the unsafe, unregulated black market is a growing threat to British punters.
“These illicit sites have none of the regulated sector’s consumer protections in place, such as strict ID and age verification checks, safer gambling messages and the ability to set deposit limits.
“It is important to stress that the big increase in the black market is not an argument against more changes to the regulated industry, but an argument that we need to get them right.”
With the UK government currently reviewing the 2005 Gambling Act, operators are urging politicians and regulators to avoid more restrictions that will make licensed operators less attractive, and push even more players to the black market.
Reacting to the BGC’s latest report, William Hill CEO Ukrik Bengtsson said:
“Here at William Hill, we have long been concerned by the black market in gambling and the threat it poses to customers. Our view of the gambling black market is it’s a growing problem that we must confront. Everyone who gambles in Britain deserves protection from illegal operators. We must do all that we can to make sure that remains the case.”
While Flutter Entertainment’s UK and Ireland Division Chairman, Ian Proctor, added:
“The Gambling Act Review is a moment for regulated and responsible operators to ask ourselves how we can raise our game to drive forward enhanced safer gambling practices.
“The report on the growth of the black market published by PwC today, is an important reminder of the complex challenges operators, Government and other stakeholders must address to ensure that the review of gambling regulation delivers genuine improvements in customer protection, rather than cosmetic change which might inadvertently open the door to greater unlicensed participation in the UK market.”
AYO.NEWS says:
While it is obviously true that the BGC is an industry body, and so will always be biased towards the operators it represents, the basic issue here is one of logic. That is that if there is a demand for certain types of gambling products or services, and licensed operators are not able to provide them due to legal restrictions, customers absolutely will look elsewhere. They won’t just magically disappear into thin air, no matter how much the anti-gambling lobby wants them to.
So, the choice is simple. Either stop turning the screws on licensed gambling operators so that they can realistically compete with unlicensed ones, while encouraging best practice, investing in decent education, and enforcing existing rules, and accept there will always be some problem gambling. Or, stop beating around the bush and ban gambling.
The idea that anti-gambling campaigners will ever be satisfied is naive to say the least. Although anti-gambling campaigners try to hide behind a veneer of objectivity, it is entirely fake. This is not to say their viewpoint is wrong. It is just “calling a spade a spade.” For, the undeniable truth is that anyone who has been negatively affected by problem gambling is naturally going to take issue with the gambling industry, and cannot be objective (just as the gambling industry itself cannot be objective).
And, with the anti-gambling pressure groups being increasingly appeased by virtue signalling politicians looking to score votes, and a so-called “lived experience” panel being appointed to advise the UKGC, unless something changes and we get truly neutral, objective people making the decisions, the future is looking difficult for the UK gambling industry.
‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates.
All original content featured on this site is © Pentagon Digital Limited, 2019-2021.
iGaming
BETFRED TURNOVER HITS £995.6M AS ONLINE NEARS HALF OF GROUP REVENUE
Betfred’s latest accounts show turnover of £995.6m for the 52 weeks to 29 March 2026, with online growing to 45% of the business as retail’s share fell to 55%.
Betfred generated turnover of £995.6m in the 52 weeks to 29 March 2026, according to its latest accounts filed at Companies House, with its online business now accounting for close to half of the group’s revenue.
Retail contributed 55% of turnover in the period, down from 61% a year earlier, with online making up the remaining 45%. The shift continues a long-running rebalancing for the family-owned bookmaker, which built its business on the high street.
The group traces its roots to a single shop opened by brothers Fred and Peter Done in Salford in 1967, and it remains privately controlled by the Done family. It grew into one of the largest retail estates in British betting, adding the Tote in 2011, and has since built out its online sportsbook and casino to compete with the listed groups that dominate UK digital betting.
A change of year-end
The headline numbers are not directly comparable with the prior set of accounts. Betfred moved its year-end from September to March, so the comparative period covers 78 weeks to 30 March 2025. On a like-for-like 12-month basis, group turnover rose by £23.3m, according to the filing as reported by the trade press. Management attributed part of the growth to higher marketing spend aimed at increasing market share and attracting new customers.
Gross profit for the year came in at £719.9m. Operating profit was £74.1m after a one-off £4.6m charge for aborted acquisition costs, and EBITDA was £140.6m. Profit after tax was £39.6m, as reported by SBC News.
Exceptional charges totalled £7.1m, including the aborted deal and £801,000 of closure costs for a foreign subsidiary linked to the US business the group wound down in 2023-24. Betfred had earlier sold its Spanish online business, booking a £1.6m profit on the disposal.
Costs and headcount
Employee costs rose by £19.2m on a like-for-like basis, driven largely by minimum wage increases. Employee numbers edged down to 7,795 from 7,872. The group’s tax charge fell to £24.4m from £59.8m in the longer prior period.
Betfred again declined to provide a geographical breakdown of earnings, with directors stating that doing so would be “severely prejudicial to the interests of the group”.
Tax pressure ahead
The accounts close just before the rise in Remote Gaming Duty to 40%, which took effect in April 2026, so the hit to the online business is not yet reflected in the numbers. The remote betting rate of General Betting Duty is due to rise in April 2027.
The bigger risk for Betfred sits in its shops. Founder Fred Done has been one of the most vocal opponents of a proposed doubling of Machine Games Duty, telling the Financial Times that such a rise would lead the business to close 495 shops within a year, costing 2,575 jobs. In August, Betfred said it was consulting on the possible closure of up to 132 UK shops as part of its response to the tax changes already announced.
The Betting and Gaming Council has warned this week that raising MGD to 40% could cost up to 16,000 jobs across the sector. With retail still producing the majority of Betfred’s turnover, the outcome of the Budget will weigh heavily on whether the online shift accelerates by choice or by force.
iGaming
YOUTUBE OPENS MASTHEAD TO CERTIFIED ONLINE GAMBLING ADVERTISERS
Google will let certified online gambling advertisers buy YouTube Masthead placements from 21 October, extending an existing allowance for sports betting while excluding unlicensed affiliates.
Google will allow certified online gambling advertisers to run campaigns in YouTube’s Masthead, the premium placement at the top of the YouTube home feed, from 21 October 2026.
The change was set out in a Google Ads policy notice posted on 7 October. It extends an allowance that already covered sports betting, opening the slot to online gambling operators that hold certification under Google’s Gambling and games policy.
Who qualifies
Eligibility rests on certification. Operators must be certified for the relevant market, and every ad must still comply with the wider Gambling and games policy as well as local legal, jurisdictional and age restrictions.
The notice explicitly excludes advertisers in Google’s online gambling-promoting content category that are not subject to mandatory state or national gambling registration. In practice that shuts out affiliates, comparison sites and other promotional publishers that send traffic to operators without holding an operating licence themselves, even when the operator they promote is certified.
Google has not listed the countries in which the Masthead change applies. Trade press analysis of the notice has pointed out that earlier announcements on gambling ads in Google TV and Masthead placements named specific markets, while this one does not. Masthead creative is also reviewed individually, so certification alone does not guarantee approval.
Certification itself is country by country. Google requires gambling advertisers to show they hold the appropriate licence from the regulator in each market they target, and to restrict ads to those jurisdictions. That means the Masthead opening will only matter in regulated markets where Google already accepts online gambling ads, and only for operators that have completed the process there.
Part of a wider recalibration
Google’s standard policy has long barred gambling promotion in a handful of formats, including Gmail ads, Shopping ads and Masthead placements. The company has spent 2026 tightening the certification rules that sit underneath its gambling ad policy, starting in March with new requirements for online gambling advertisers and extending them across categories in September.
The Masthead change runs the other way, adding inventory for operators that have cleared those tighter checks. It gives licensed brands access to one of the most visible and expensive placements in digital advertising.
Timing against tighter ad rules
The move arrives as gambling advertising faces mounting restrictions in several of the markets where operators would most want to use it. Denmark has tabled a whistle-to-whistle ban on gambling ads during live sport alongside curbs on affiliate marketing. France has added new sign-off requirements for gambling ad campaigns, and in the UK a House of Lords committee has called for a ban on gambling advertising, a recommendation the industry has challenged.
Platform policy is also under pressure from regulators and industry bodies focused on the black market. In the Netherlands, the Dutch online gambling association VNLOK has taken Meta to court over ads for illegal gambling, while Nordic operator Paf has launched a pilot with Meta aimed at curbing unlicensed gambling promotion.
By tying Masthead access to formal certification and excluding unregistered promoters, Google’s change is likely to favour the largest licensed brands with the budgets to buy premium reach. Operators will be watching for confirmation of which markets are covered once the policy takes effect on 21 October.
iGaming
BGC SAYS DOUBLING MACHINE GAMES DUTY COULD COST 16,000 JOBS
The Betting and Gaming Council has urged the Chancellor to rule out raising Machine Games Duty to 40%, citing EY modelling that puts up to 16,000 jobs, 1,500 betting shops and 34 casinos at risk.
The Betting and Gaming Council (BGC) has stepped up its campaign against a further rise in UK gambling taxes, warning that doubling Machine Games Duty (MGD) to 40% at the forthcoming Budget could cost up to 16,000 jobs.
In a statement published on 13 October, the trade body cited EY modelling showing that the increase would put almost 1,500 betting shops and as many as 34 casinos at risk, while leaving the Treasury up to £124m worse off as venues close and the tax base shrinks.
Betting shops and young workers
The BGC said betting shops support more than 36,000 jobs, with over 80% of them outside London. It said the workforce skews young: 19% of betting shop employees are under 25, against 11% across the wider economy, and 51% are under 35, compared with 35% nationally. Half of the workforce is female.
Of the jobs it says are at risk, 27% are in the North of England, rising to nearly 40% when Scotland is included.
“Britain’s betting shops support more than 36,000 jobs, and more than eight in ten of them are outside London,” said BGC chief executive Grainne Hurst. “Our message to the Chancellor is simple: rule out any increase in Machine Games Duty.”
Casinos warn of closures
The intervention followed a separate BGC statement on 12 October focused on land-based casinos. It said a 40% MGD rate would put up to 3,800 casino jobs at risk and could lead some operators to consider closing as much as a third of their estates. Half of the threatened closures would be in the North of England and Scotland.
The BGC said casinos directly employ more than 10,000 people, receive 14 million visits a year and contribute £515m in taxes. More than £50m of planned investment could be cancelled or scaled back if taxes rise, it added. Hurst described the proposal as “an existential threat to casinos across Britain”.
Where the proposal came from
The idea of doubling the duty on Category B gaming machines was put forward by the Social Market Foundation, which estimated it could raise between £275m and £458m a year in additional revenue. The industry disputes that estimate, arguing that closures would erode the yield.
The warnings land on a sector still absorbing the last round of increases. Remote Gaming Duty rose to 40% in April 2026, and the remote betting rate of General Betting Duty is due to rise in April 2027. Betfred founder Fred Done has said doubling MGD would force the closure of hundreds of the bookmaker’s shops, and a report by consultancy Regulus has argued the hike would put £92m of horseracing income at risk because of the sport’s reliance on betting shop turnover.
The BGC said the regulated industry as a whole supports 109,000 jobs, contributes £6.8bn to the UK economy and pays more than £4bn a year in tax.
What happens next
The Treasury has not confirmed whether MGD is under review, and the BGC’s figures come from modelling the industry commissioned. With the Budget approaching, the sector’s lobbying is now focused squarely on retail, after a year in which online operators bore the brunt of the tax changes. Whether the Chancellor treats machines as the next source of revenue will shape the size of the British high street estate for years to come.
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