Illegal gambling operators are estimated to have taken £16.6 billion in stakes from UK consumers in 2025, compared with an estimated £5 billion in 2019. According to the BGC, the analysis was produced by H2 Gambling Capital and showed that both stakes and operator profits doubled between 2023 and 2025.
Offshore Stakes Pull Away From Licensed Channel
As the report suggests, there has also been a shift in channelisation. H2GC estimated that 92% of UK gambling took place through licensed operators in 2025. Back in 2019, that figure stood at 97%. While the legal market dominates, the growth trend observed in illegal supply puts pressure on regulators.
Player protection is what the authorities appear to be concerned with. Offshore operators tend to ignore UK rules when it comes to safer gambling, age verification, marketing, and dispute resolution.
Advertising Adds Pressure
Visibility is becoming part of the same issue. As per the separate WARC analysis quoted by the BGC, the illegal operators now make up nearly half of UK gambling advertising spend. This share is expected to surpass the regulated sector within two years.
Black market gambling does not just consist of hidden websites. Users can now interact with offshore brands through search engines, social networks, sports-related websites, and affiliate marketing techniques.
For licensed gambling operators, the issue goes beyond compliance. They have higher tax rates, product restrictions, and rigorous customer checks. Offshore sites, in turn, can compete without such costs or compliance duties.
Risk Checks Stay Politically Sensitive
The BGC also links the figures to its warning over proposed financial risk assessments. According to the group, the checks have to be frictionless to prevent customers from switching to unlicensed websites.
However, the Gambling Commission has refuted some of those criticisms. It said in April that financial risk assessments are not live and no customer had action taken based on one during the pilot. The regulator added that the checks targeted high-spending remote gambling customers, those who might be experiencing financial difficulties.
Enforcement Is Now the Test
The UK Government has committed to providing an extra £26 million across three years to the Gambling Commission to tackle illegal gambling. The funds are intended to increase the regulator’s resources and capacity to tackle the illegal market, alongside the work of the Illegal Gambling Taskforce.
It looks like enforcement must now take the entire digital path to the consumer. Domain blocking might not be sufficient if illegal operators keep reaching users through ads, search optimization, and offshore infrastructure. For licensed play to continue to be the default, the United Kingdom needs a policy that safeguards vulnerable users but does not make the legal product easier to leave than to use.
