The UK government has launched an Illegal Gambling Taskforce, led by Baroness Twycross, as the latest measure in its effort to curb black market activity.

Framed as a decisive step to protect consumers and support the regulated sector, the initiative has been met with industry scepticism over whether it delivers meaningful enforcement or political cover for rising taxes and fees.

The taskforce is positioned as part of the government’s wider regulatory reset, promising intelligence-led investigations, closer agency cooperation, and faster takedowns of illegal websites.

However, ministers have yet to define its operational powers, scope, or international reach, key factors when confronting offshore operators and decentralised payment networks.

These concerns were discussed on the iGaming Daily, where host Charlie Horner was joined by SBC Editor-at-Large, Ted Menmuir, and iGaming Expert’s Editor, Joe Streeter. The trio questioned whether the taskforce acts as a practical enforcement tool or a “carrot” for licensed operators facing higher fiscal burdens.

Streeter noted that while the initiative sounds robust on paper, details remain thin. Current signals suggest a focus on two pressure points: payments and advertising. Both are critical to illegal operators’ scale and reach, but neither is easy to police without sustained funding, specialist expertise, and cooperation beyond UK borders.

£26m: scale mismatch?

The government has allocated £26m to the Gambling Commission to strengthen enforcement and intelligence. While welcomed in principle, Menmuir argued the figure is modest relative to the sophistication of illegal networks, which operate more like organised financial crime than rogue websites. He questioned whether this funding can keep pace with operators who rapidly adapt payment methods and digital distribution.

Disruption over elimination

The taskforce appears aimed at disruption rather than eradication, prioritising:

• Payments: Restricting access to financial rails used by illegal sites.
• Advertising: Reducing visibility, particularly on social platforms.
• Intelligence sharing: Improving coordination with police and other agencies.

This approach may raise friction, but it is unlikely to remove demand entirely.

Regulated sector under strain

The timing is contentious. Licensed operators face licence fee increases of 20–30% alongside higher taxes and tighter advertising rules. The panel warned of a “double whammy”: compliant firms pay more to compete in a tougher market while illegal operators face none of these costs. The risk, they argued, is consolidation or exit from the UK, weakening the legal market the policy is meant to protect.

The panel concluded that without international coordination and a competitive regulated framework, the taskforce risks being visible but limited, addressing symptoms while the underlying market dynamics remain unchanged.