The Betting and Gaming Council (BGC) has raised alarms regarding Britain's illegal gambling sector, which may capture as much as £60 million ($80.14 million) in bets during the Cheltenham Festival. This prestigious horse racing event, spanning four days, is expected to generate around £1 billion ($1.34 billion) in total betting stakes, presenting a lucrative opportunity for both licensed and unlicensed operators.
Currently, the illegal gambling market accounts for approximately 6% of all betting activities in the UK. When applied to the Cheltenham Festival, this could mean up to £60 million being wagered outside of regulated platforms, averaging about £2 million per race.
Grainne Hurst, CEO of the BGC, emphasized the significance of Cheltenham for racing enthusiasts, stating, “Millions placed bets safely with regulated operators.” However, she cautioned that the illegal market is also trying to exploit this event, enticing bettors with unregulated options that lack the protections offered by legitimate channels.
The total annual turnover for horse racing betting in Britain is estimated at £11 billion, with around £8 billion wagered through legal online platforms. The BGC has expressed concerns that increasing taxes on licensed operators and potential new regulations requiring customers to provide personal financial documents could drive more bettors towards unregulated sites.
“Rising taxes and increasingly intrusive checks will only make it harder for legitimate operators to compete,” Hurst noted.
Licensed betting companies in the UK must adhere to stringent regulations, including age verification, anti-money laundering protocols, and safer gambling measures. In stark contrast, illegal operators evade these rules, offering no consumer protections.
Hurst concluded by stressing the importance of keeping bettors within the regulated market, where safeguards are in place, rather than pushing them towards harmful unregulated operators. The regulated betting and gaming sector supports over 109,000 jobs, contributes £6.8 billion to the UK economy, and generates £4 billion in annual tax revenue, while also funding British horse racing. The BGC reiterated that combating the criminal networks behind illegal gambling sites is essential to maintaining consumer safety within the regulated market.