Nov 30, 2022 | 2:28 am
Illegal gambling activity in the UK has climbed close to £17 billion ($21.25 billion) as offshore betting operators continue gaining market share, according to new industry analysis highlighting growing pressure on the regulated sector.
Research from H2 Gambling Capital found that betting stakes placed through offshore operators increased from roughly £5 billion in 2019 to £16.6 billion in 2025. The figures were shared by the Betting and Gaming Council (BGC), which warned that illegal operators are becoming more aggressive in targeting British consumers.
The latest data arrives as the UK Gambling Commission (UKGC) moves to strengthen its anti-black market strategy through the creation of a new senior position dedicated to illegal gambling enforcement.
UKGC Creates New Illegal Gambling Leadership Role
The UKGC has opened recruitment for a “Head of Illegal Markets” position as part of wider efforts to address the growing black market.
According to the regulator, the role will oversee strategy and enforcement connected to illegal gambling activity while coordinating work between intelligence, legal, sports betting integrity, and enforcement teams.
The UKGC described the position as a “high-profile position with frequent exposure to external stakeholders, as well as the Executive Team and Board.”
The regulator said the successful applicant would help “identify and manage risk, novel and contentious issues, and precedent-setting products,” while also “providing tactical and strategic resolutions.”
Applications for the role remain open until May 24, with interviews expected to take place between June 5 and June 9. The role carries a salary of £65,000 annually and is available on either a full-time or part-time basis.
The UKGC stated that the position “plays a critical part” in delivering its broader anti-illegal gambling strategy and would contribute toward creating a “safer and more transparent gambling environment across Great Britain.”
The regulator also noted that work carried out through the role could influence both domestic and international policy responses related to illegal gambling activity.
Offshore Operators Gain Ground in the UK
Alongside the expansion of the black market, regulated operators have seen their overall market share decline.
According to H2 Gambling Capital’s analysis, around 97% of UK gambling activity took place through licensed operators in 2019. By 2025, that figure had fallen to 92% as more players moved toward offshore websites.
Industry analysts linked the shift to tighter regulation, higher compliance requirements, and increasing tax pressure on licensed operators.
Separate research referenced in the report indicated that illegal operators are also expanding their advertising activity. WARC data suggested that unregulated gambling firms now account for nearly half of gambling advertising spending in the UK, with that share projected to increase further over the next two years.
At the same time, betting engagement across the country has remained high. Data from iGaming intelligence platform Blask showed consistent betting interest levels across the UK over recent months despite increased regulatory scrutiny.
The Blask Index recorded betting interest levels above 50 million during several months between mid-2025 and early 2026, supported by the UK’s large online audience of more than 65 million internet users.
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Industry Raises Concerns Over Regulation
The Betting and Gaming Council warned that current market conditions may continue pushing players toward offshore platforms.
“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,” said BGC Chief Executive Grainne Hurst.
Hurst also criticised proposed financial risk assessments and affordability checks, arguing that excessive friction could encourage players to leave regulated platforms.
“The choice for policymakers is clear. If the regulated sector becomes harder to use or less competitive, customers will not stop betting, they will simply go elsewhere,” she said.
“That is why financial risk assessments must either be genuinely ‘frictionless’ or not introduced at all, because anything else will push customers out of the regulated market.”
Debate around affordability checks intensified further after more than 400 figures from British horseracing urged the government to delay the measures, warning that stricter controls could reduce sponsorship income and damage racing finances.
The UK gambling sector is also facing increased taxation. From April 2026, the Remote Gaming Duty applied to online casino products rose from 21% to 40%, representing one of the largest tax increases introduced in the market in recent years.
Meanwhile, the UK government recently allocated an additional £26 million over three years to support UKGC investigations into illegal gambling activity.
Authorities also launched a new anti-illegal gambling task force involving companies including Google, Visa, Mastercard, and TikTok to disrupt advertising, payment processing, and digital promotion linked to unauthorised gambling operators.
Source:
“UK illegal gambling nears $21B amid rising demand”, sigma.world, May 13, 2026.