{"id":6973,"date":"2024-09-25T13:33:25","date_gmt":"2024-09-25T12:33:25","guid":{"rendered":"https:\/\/sbceurasia.com\/en\/?p=6973"},"modified":"2024-09-25T13:33:30","modified_gmt":"2024-09-25T12:33:30","slug":"bgc-flags-surge-in-black-market-gambling-with-1-5-million-uk-users","status":"publish","type":"post","link":"https:\/\/sbceurasia.com\/en\/2024\/09\/25\/bgc-flags-surge-in-black-market-gambling-with-1-5-million-uk-users\/","title":{"rendered":"BGC Flags Surge in Black Market Gambling with 1.5 Million UK Users"},"content":{"rendered":"\n

The Betting and Gambling Council (BGC)<\/strong> has cautioned the government about the significant dangers posed by the unregulated gambling black market, which many Britons may underestimate.<\/p>\n\n\n\n

This warning comes in light of a recent study conducted by microeconomics consultancy Frontier Economics<\/strong>, titled “The Size and Economic Cost of the UK Black Market for Gambling.”<\/strong><\/p>\n\n\n\n

Commissioned by the BGC, this report is described as the first comprehensive analysis of the black market since the government\u2019s previous White Paper on gambling reform.<\/p>\n\n\n\n

The UK gambling industry is highly regulated, with 14 million adults<\/strong> (excluding National Lottery participants) gambling each month and generating an annual gross gambling revenue (GGY) of \u00a310.9 billion<\/strong>.<\/p>\n\n\n\n

Regulation ensures consumer protection through safer gambling measures, monitoring for compliance, responsible gambling tools, and financial oversight, all managed by the UK Gambling Commission<\/strong> (UKGC).<\/strong><\/p>\n\n\n\n

Andrew Leicester,<\/strong> Associate Director at Frontier Economics, said: \u201cThis report shows that most gambling today is done through regulated, visible channels. That is good news.<\/p>\n\n\n\n

\u201cBut there are warning signs. The landscape is evolving quickly in ways that suggest black market gambling is getting easier to find and access.<\/p>\n\n\n\n

\u201cThis report provides timely new evidence on the scale of the black market. Efforts to make gambling safer are important, but must avoid the risk of simply pushing more players and spending into unregulated providers who do not need to comply with regulations around safer play.\u201d<\/p>\n\n\n\n

Regulatory Blindspots<\/strong><\/h3>\n\n\n\n

The study highlights gaps in UK gambling regulations, noting that previous research underestimated the threat posed by the black market, suggesting it was relatively small. However, authorities must now acknowledge the evolving tactics used by black market gambling websites, which are promoted through social media and messaging apps.<\/p>\n\n\n\n

With the rise of Virtual Private Networks (VPNs)<\/strong>, accessing illegal gambling sites has become easier, allowing these operators to advertise on social media and apps, including banned entities like \u2018crypto casinos.\u2019<\/p>\n\n\n\n

In a first-of-its-kind study, Frontier Economics surveyed over 6,000 people <\/strong>to assess how individuals access black market gambling. This research was supplemented by a representative national sample to capture those who exclusively engage with unregulated gambling.<\/p>\n\n\n\n

The findings show that the black market operates alongside the regulated UK gambling sector, offering unrestricted access, no verification, and anonymity – key factors drawing customers to illegal platforms. Alarmingly, illegal sites are often advertised via affiliate websites promoting their \u2018non-GAMSTOP\u2019<\/strong> status, attracting players seeking unregulated alternatives.<\/p>\n\n\n\n

The study found that 15%<\/strong> of gamblers surveyed had heard of at least one black market site, equivalent to around 2.8 million <\/strong>people. Sponsorships (13%<\/strong>) and social media adverts (22%<\/strong>) were identified as major contributors to this awareness.<\/p>\n\n\n\n

Unaccountable Impacts<\/strong><\/h3>\n\n\n\n

The study estimates that one in 12 gamblers in the UK use black market sites or social media for their gambling, equating to 1.5 million <\/strong>people. The total black market stake is conservatively estimated at \u00a32.7 billion annually<\/strong>, roughly 2.1% of the \u00a3128 billion<\/strong> wagered on regulated gambling in the UK.<\/p>\n\n\n\n

Breaking down this \u00a32.7 billion<\/strong>, \u00a3262 millio<\/strong>n comes from players exclusively using black market operators, \u00a3433 million<\/strong> from those gambling via social media platforms like WhatsApp<\/strong>, and \u00a32 billion <\/strong>from players who split their gambling between regulated and black market sites.<\/p>\n\n\n\n

The report indicates that black market gambling is particularly prevalent among younger players, with 65%<\/strong> of black market spending coming from those aged 18-34<\/strong>. Additionally, 58%<\/strong> of the stakes come from individuals who spend more than \u00a3800 per month <\/strong>on gambling.<\/p>\n\n\n\n

The true size of the black market is likely underestimated due to the long tail of unregulated operators. The economic impact is also significant, as the black market could cost the Treasury up to \u00a3335 million in tax <\/strong>revenue over a five-year period, or \u00a339 million annually<\/strong> – funds that could instead support public services like healthcare and education.<\/p>\n\n\n\n

BGC Calls for Action Beyond Enforcement<\/strong><\/h3>\n\n\n\n

The BGC urges continued collaboration with the UK Gambling Commission (UKGC) to combat illegal gambling and better understand what drives consumers to these platforms. This will support the Commission in its mission to protect UK consumers from the dangers of unregulated gambling.<\/p>\n\n\n\n

BGC CEO Grainne Hurst<\/strong> said: \u201cThe Government and the regulator risk sleepwalking into this issue. Simply giving the GC more powers and more resources to tackle the black market won\u2019t, in itself, work. Enforcement is only part of the solution.<\/p>\n\n\n\n

\u201cThe fact is, onerous and ill-judged regulations drive customers from the regulated sector to the unsafe, unregulated gambling black market.<\/p>\n\n\n\n

\u201cProposals by anti-gambling prohibitionists, like advertising bans or intrusive, blanket, low-level affordability checks, will not protect customers. In fact, they will give another leg up to unscrupulous black market operators\u2014the last thing anyone wants.<\/p>\n\n\n\n

\u201cEvery comparable market in the world tells us the same thing. The best defence against this growing illegal gambling black market is getting the balance of regulations right.\u201d<\/p>\n\n\n\n

Don’t forget to subscribe to our Telegram channel<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

The Betting and Gambling Council (BGC) has cautioned the government about the significant dangers posed by the unregulated gambling black market, which many Britons may underestimate. 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