The UK gambling black market is an alarming problem, according to the Director of Policy at the Betting and Gaming Council (BGC).

Alex Roberts asserted how the UK could tip into the black market which has long been kept at bay if a combination of taxation, regulation and restrictions push customers away. 

The worry is that an increased level of tax that could come from Rachel Reeves’ Autumn budget could begin pushing people to unregulated and illegal markets – something which users can access in seconds, says Roberts. 

The UK black market is “huge”

Speaking on the latest episode of the iGaming Daily Podcast, Roberts said: “The black market in the UK is huge.

“We’ve got 4.3 billion in stakes, 1.5 million players are playing on it and the awareness point is one that came through as particularly alarming in terms of how aware people were of the black market.”

Roberts did say that, in comparison to other countries, the black market in the UK is low, but the channellisation rate is a better rate despite the size of the market. 

However, he cited the ease of access as a huge risk. 

“It is a huge risk that is there and it is very easy for it to tip over into that [the black market].  It’s the ease of access that is really the biggest risk that we need to call out. 

“You and I and everybody listening could pull out the phones now and be gambling on black market sites within minutes, seconds perhaps.

“If we create a situation where people actually aren’t satisfied in the regulated market or are targeted by the black market, it is very easy for them to do that. It is an enormous risk.”

How can the UK battle back? 

The fight against these operators could come from a few areas: more research, better regulatory frameworks and better safeguards against search engines.

Roberts says the costs incurred by the legal operators due to the regulation makes it difficult to offer such glamorous bonuses that illegal companies can.

Therefore, how can the UK market fight against the black markets? Roberts began with allowing regulated companies to innovate to maintain its client base. 

He said: “The best thing that we can do is provide a diverse and attractive regulated product that customers want to engage with and want to stay.

“We’ve got to allow an environment where operators are legally allowed to provide services, products that customers want, but also where they’ve not got threats hanging over their heads. That means they’re not going to put money into innovation and development.”

Another area that can be improved is education, which Roberts says is a theme that regularly appears in the reports, with many struggling to identify a black market site.  

He rounded off by conceding that the black market won’t be entirely defeated but its impact can be reduced. He also noted that the UK has been doing much better than other European nations at driving a good channelisation rate, attributing this to the broad range of high quality products available – the battle is keeping it this way.

“We’ve got to recognize it as a shared challenge first and foremost, you know, and there’s got to be an acceptance that the black market is always going to exist, right? 

“We’ve not defeated it in any other sector. We’re not going to defeat in gambling, but we’ve got to recognize we’ve got to work together to minimise its impact as much as possible.”