Illegal Horse Race Betting in the UK Skyrockets 522%

The UK gambling black market has seen a troubling 522% surge in unique visits to unlicensed horse racing betting websites, leading to mounting concerns over regulatory policies unintentionally driving users away from legal offerings. A recent report by the International Federation of Horseracing Authorities (IFHA) revealed a spike in exposure to these unregulated platforms, prompting calls for regulatory intervention.

Regulated Platforms Are Lagging Behind

According to IFHA’s newest study, 22 unlicensed platforms targeting UK consumers saw a 522% increase in unique visitors, while overall traffic to these illegal websites shot up 131%. Meanwhile, legal horse racing wagering providers saw only a 49% increase in unique visitors and a 25% rise in overall traffic, revealing the growing prevalence of unregulated platforms.

The study implies that one possible explanation for these disconcerting results could lie in the UK’s recently updated gambling regulations, such as the affordability checks implemented as part of the 2023 Gambling Act review. According to a recent RacingPost report, British Horseracing Authority (BHA) acting CEO Brant Dunshea was also apprehensive regarding the government’s regulatory policy.

From the outset of the Gambling Act review, British racing has repeatedly warned of the unintended consequences of well-meaning policy decisions on our sport, including the threat of inadvertently growing unlicensed market activity.

Brant Dunshea, BHA acting chief executive

While the IFHA acknowledged that regulatory shifts may not be the sole explanation behind this disturbing trend, the organization drew attention to the impact of black market operators on vulnerable individuals. Most notably, such illegal entities allow users to completely bypass self-exclusion schemes like Gamstop, leading to cases of people relapsing into problem gambling.

Industry Representatives Urge Swift Changes

In addition to the humanitarian cost, the proliferation of black market entities could have significant financial implications. The BHA’s October 2023 Right to Bet survey, which polled over 14,000 racing bettors, uncovered that 10% were actively engaging with illegal operators. Meanwhile, UK Gambling Commission (UKGC) data reveals that online bets on British racing have fallen by £1.6 billion ($2 billion) during the last two years.

The Betting and Gaming Council (BGC) likewise expressed growing apprehension regarding these newest findings. Its own surveys indicated that 1.5 million Brits now spend up to £4.3 billion ($5.37 billion) annually on black-market gambling, further highlighting the necessity for regulatory balance. BGC CEO Grainne Hurst warned that if the government does not move quickly, this trend will continue.

We have been clear: balanced regulations and a stable tax regime are the best defense against the black market. If that doesn’t happen, these statistics will only go one way.

Grainne Hurst, BGC CEO

The BHA and BGC have urged the UK government to reconsider its gambling reform policy, loosen some of its regulatory restrictions, and allow the regulated sector to better compete with unlicensed entities. Intensified crackdowns against illegal operators could offer another avenue to protect consumers as policymakers continue to balance regulation and market sustainability.