The Betting and Gaming Council (BGC) in the UK has urged lawmakers to exercise caution as they prepare for a parliamentary discussion regarding gambling advertising. The BGC warns that imposing strict regulations could inadvertently encourage the rise of illegal gambling operators.
Grainne Hurst, the Chief Executive of the BGC, emphasized the importance of a thoughtful approach, urging Members of Parliament to reconsider tightening advertising rules amidst growing concerns about the increasing market share of unregulated firms.
“The trend is evident: while regulated companies are reducing their advertising efforts, the unregulated black market is expanding swiftly. This should give policymakers reason to reflect,” Hurst stated.
The parliamentary debate is scheduled for this Thursday and is organized by the Backbench Business Committee, initiated by MPs Alex Ballinger and Dr. Beccy Cooper, who have expressed worries about gambling marketing, especially regarding its impact on young individuals through social media.
“We need effective regulatory and legislative measures to address marketing practices in the industry, ensuring that children are shielded from the surge of gambling advertisements, sponsorships, and influencer promotions,” Cooper remarked in a previous discussion. “It’s crucial to revisit the White Paper and establish a timeline for a new Gambling Act.”
Ballinger also voiced concerns regarding the current protective measures: “There is a significant issue with the self-regulation of content marketing. Although the Advertising Standards Authority has guidelines requiring gambling marketing to be clearly identifiable, compliance remains inconsistent.”
“The public is clearly fatigued by gambling advertisements. I urge the Government to take the all-party parliamentary group on gambling reform seriously, as it will present recommendations on curbing the most detrimental advertising practices, particularly those affecting youth,” he added.
However, the BGC contends that the focus should be on the origins of advertising rather than its overall volume, highlighting the rapid expansion of the black market.
“The key issue is whether the advertising originates from regulated operators, who adhere to stringent standards, or from the harmful illegal black market, which operates outside legal boundaries,” Hurst explained.
According to research from WARC, a global marketing intelligence firm cited by the BGC, illegal operators now represent nearly half of the UK’s gambling advertising expenditure, with projections indicating this share will surpass 50% within the next two years.
WARC reported: “While the gambling sector's ad spending in the UK is expected to reach £1.9 billion this year, our research indicates a bifurcated market, with nearly all growth being driven by unlicensed firms.”
“Notably, unlicensed operators are on track to account for over half of all advertising expenditure in the gambling sector by 2028, signaling a significant shift in the market landscape.”
Total UK gambling advertising is anticipated to hit £1.9 billion ($2.56 billion) by October 2026, with licensed operators expected to decrease their spending by 9.2% to £1.1 billion ($1.48 billion). Conversely, advertising expenditures by unregulated operators are projected to rise by 32%.
Hurst cautioned that imposing further restrictions on licensed firms could backfire. “Targeting licensed operators, especially when their advertising spend is already declining, will not diminish overall advertising; instead, it will strengthen the harmful illegal black market that is aggressively pursuing UK customers,” she stated.
“The Government must act decisively and swiftly to combat the black market before it becomes too late,” she concluded.