Illegal Gambling on the Rise in the UK

by James Gibson, 14 May 2026

The UK’s gambling black market continues to grow as more people access illegal offshore sites.

People are visiting illegal gambling sites more often. © Aidan Howe, Unsplash

Key Facts:

• UK customers spent nearly £17 billion at illegal gambling sites in 2025
• This is more than triple the figure for 2019
• The vast majority of gambling in the UK is at licensed sites

H2 Gambling Capital (H2GC) recently carried out a study looking at illegal gambling activity in the UK. What it found was that in 2025, illegal gambling businesses earned roughly £16.6 billion from UK-based customers.

The findings were shared by the Betting and Gaming Council (BGC). The figure of almost £17 billion is more than triple the same one for 2019, which was £5 billion. Illegal gambling seems to have gained popularity since the pandemic.

Even though the pandemic has been over for quite a few years now, gambling at unlicensed sites continues to grow in popularity. Both stakes and profit margins for 2025 are double the corresponding figures for 2023.

Why People Could Be Turning Away from Licensed Sites

Some operators of licensed (and therefore legal) sites have expressed concern about regulatory reforms. These changes have been causing a range of issues for licensed sites; they may also be encouraging people to join unlicensed sites.

Grainne Hurst, the CEO of the BGC, has said the following on the subject:

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– Grainne Hurst, BGC CEO, talks about an increase in illegal gambling activity, Next.io

She also said that the regulated part of the gambling industry has to change, otherwise illegal sites will continue to thrive. Regulated sites need to be easier to use and more competitive with their offerings.

Though the illegal gambling figures may be alarming, most gambling in the UK is carried out at licensed sites. According to H2GC, 92% of British gambling took place at sites licensed by the UK Gambling Commission.

However, this figure has fallen. Back in 2019, the percentage of gambling taking place at licensed sites was higher at 97%. There might be only a 5% difference, but it represents a large number of people gambling at illegal sites.

Those in the legal gambling sector want people to spend their money at licensed sites because of the protections they offer. These include safe gambling protocols, age verification checks and fair dispute handling.

The Dominance of Advertising

An excess of advertising can be blamed for the rapid growth in illegal gambling. WARC (World Advertising Research Centre) found that nearly half of the money spent on UK gambling ads comes from unlicensed operators.

This is predicted to go beyond 50% in the next two years. The obvious result of this is that illegal gambling sites will be promoted to potential customers more than legal ones.

If ads for illegal sites continue to reach people, it will become even harder to direct them to licensed online casinos and sportsbooks. Reducing ads from illegal sites would have a positive impact.

Other Challenges the Sector Is Facing

Like other sectors, the gambling industry has faced several challenges in recent years, mainly related to regulation and finance. One of the most pressing and divisive ongoing issues is affordability checks.

These are in the proposal stage right now; they might not even gain approval. However, they’ve still attracted significant criticism from various people in the gambling sector.

Also known as financial risk assessment, they’re intended to ensure someone can afford to gamble without getting into financial problems. Those who oppose its introduction have argued it’s a step too far.

They believe some customers will find the checks frustrating and too invasive. If the checks cause delays in withdrawals, people may dislike them even more.

If checks are introduced and irritate people too much, some might turn to unlicensed sites that don’t have such checks. Even someone who helped develop the checks has now turned against them.

Stuart Andrew MP, the former Gambling Minister, wants the affordability checks to be reconsidered. His opposition is significant because he oversaw the White Paper reforms that led to the checks being created.

The checks were originally meant to be seamless so they wouldn’t cause any disruption or frustration for players. A pilot scheme has shown that the checks aren’t as seamless as previously intended.