The Betting & Gaming Council (BGC) estimates that as much as £60 million ($79.7 million) may have been wagered with unregulated operators during the recent Cheltenham Festival.
Held last week, the Cheltenham Festival is widely recognized as horse racing’s premier event, drawing approximately £1 billion in total bets.
The BGC indicated that roughly £2 million per race at the festival could have been placed with illegal operators, citing recent figures that show the illicit market makes up about 6% of all bets in Great Britain.
Grainne Hurst, CEO of the BGC, highlighted the dangers faced by players who engage with illegal betting platforms.
“For racing enthusiasts, Cheltenham represents the most significant week of the year, and millions safely placed their wagers with licensed operators,” Hurst stated.
“However, the detrimental criminal black market also sought to profit, luring bettors with unlawful gambling that lacks the safeguards found in the regulated industry.”
Stricter Regulation Fuels Black Market Growth
Hurst and the BGC further cautioned that increasingly stringent regulation in Great Britain might be contributing to an increase in black market operations.
Numerous voices expressed concern about the specific repercussions the 2023 white paper would have on horse racing, particularly viewing the implementation of affordability checks as highly detrimental.
The Jockey Club warned in 2024 that affordability checks could inflict a £250 million cost on the racing industry over the coming five years, as bettors migrate to black market operators to avoid providing personal financial information.
Additionally, the UK government has sanctioned an increase in the remote gaming duty, moving from 21% to 40%, effective from April. The remote sports betting duty is also slated to rise from 15% to 25% in 2027.
Hurst cautioned that these shifts in the regulatory landscape are stimulating black market activity, asserting: “Higher taxes and progressively intrusive checks will only hinder legitimate operators’ ability to compete.
“The primary focus should be on retaining bettors within the regulated market, where safeguards exist, instead of pushing them towards dangerous unregulated operators.”
The BGC implored stakeholders to intensify their efforts against criminal organizations, aiming both to protect players and to secure the future of the racing sector.