UK punters staked £16.6bn on the black market last year on the back of regulatory pressure in the licensed sector and illegal operators becoming more visible online, according to new research from H2 Gambling Capital (H2GC).
The study showed that annual black market stakes have more than tripled since 2019, when the amount stood at £5bn, and have doubled in the past two years alone.
H2GC’s independent analysis also revealed unlicensed operator profit doubled between 2023 and 2025, while the UK channelisation rate fell from 97% in 2019 to 92% in 2025.
Black market growth, according to the study, has been caused by increased regulatory pressure, higher taxes and illegal operators becoming more visible online.
Last November, Labour chancellor Rachel Reeves announced remote gaming duty would rise from 15% to 40% – coming into effect from 1 April 2026.
Next April, general betting duty will jump from 15% to 25%, although horseracing was given a reprieve.
Commenting on the study, Betting & Gaming Council (BGC) CEO Grainne Hurst said to halt the rise in black market activity, the regulated sector must be easier to use.
She pointed to financial risk assessments as an example of something that will push punters towards illegal operators.
“What we are seeing is a harmful black market scaling up at pace,” Hurst said.
“Illegal operators are becoming more sophisticated, more visible and more aggressive in how they reach UK customers. That should concern anyone who cares about consumer protection.
“The choice for policymakers is clear. If the regulated sector becomes harder to use or less competitive, customers will not stop betting, they will simply go elsewhere.
“That is why financial risk assessments must either be genuinely ‘frictionless’ or not introduced at all – because anything else will push customers out of the regulated market.”
Hurst has previously been vocal about the increase in customers playing on the black market.
In February, she warned increasing gambling duty will see players turn to illegal operators after a poll conducted by public affairs firm Anacta found 52% of participants thought a rise in taxes would correlate to more customers using the black market.
Last month, research conducted by global intelligence firm WARC reported illegal operators will outspend regulated firms on marketing within the next two years and, by October 2028, are projected to spend over £1bn on advertising in the UK.
The post H2 Research shows UK black market stakes surpassed £16bn in 2025 first appeared on EGR Intel.
New H2 Gambling Capital study says money spent with illegal gambling operators has tripled since 2019, with online visibility and regulatory reform cited as drivers
The post H2 Research shows UK black market stakes surpassed £16bn in 2025 first appeared on EGR Intel.