Illegal bookmakers now control nine per cent of UK market, explosive black market report claims

Explosive growth in the use of black market bookmakers means illegal operators now control nine per cent of Britain’s online betting market, according to a report published this week. 

The report by gambling intelligence platform Yield Sec found that illegal operators earned £379 million in the first half of 2025, with 531 black market sports betting and casino operators actively targeting British customers.

That represents a more than tripling in market share since 2022, when just two per cent of betting revenues were attributed by Yield Sec to the black market.

The report, which was commissioned by the Campaign for Fairer Gambling (CFG), claimed that the increase in black market bookmakers was "entirely explained" by the targeting of self-excluded customers and under 18s, rather than other well-publicised factors such as the migration of bettors affected by wagering restrictions and affordability checks. The report claimed there was no "black-market menace" preying on the mainstream.

CFG founder Derek Webb called on the government to adopt plans for a major hike in gambling duties proposed by former prime minister Gordon Brown last month, arguing: "The illegal sector does not compete with established brand names here. It targets the vulnerable underage and self-excluded groups, pushing the most addictive content via 'casinos not on Gamstop' marketing."

Ismail Vali, chief executive of Yield Sec, said: "For mainstream consumers, what possible benefit would you gain from using an illegal gambling operator in Great Britain? Illegals in Great Britain cannot beat legals across price, product or promotion, consistently. There is no good reason for mainstream consumers to use illegal gambling operators, so, crime targets only those consumers who have bad reasons for requiring illegal gambling operators: they are under 18 and they are on the Gamstop self-exclusion scheme."

The report found that illegal operators now control nine per cent of Britain’s betting marketCredit: Edward Whitaker (racingpost.com/photos)

Yield Sec's report's conclusions appeared to contradict recent comments made by Vali, who said the result of a doubling of tax rates in the UK would be that "crime comes in".

Responding to the report, Paul Leyland of industry analysts Regulus Partners argued that black market growth had been the result of a number of factors, while there was a lack of material underage online gambling, and 'not on Gamstop' marketing by illegal sites targeted all players and not just the self-excluded.

Regulus maintains there is a smaller online gambling black market in Britain of 5.3 per cent of the British betting market online, having been just 2.1 per cent in 2018.

Before then the key driver had been restricted customers, but others have since emerged, including tax on gaming free plays which gave the black market an advantage in bonusing, greater scrutiny of operators by the Gambling Commission over affordability and anti-money laundering (AML) checks, and more recently the £5 limit on online slot stakes.

Leyland said of the new report's claims: "While the figure is perhaps approaching reality from a gross gaming revenue perspective, that is mostly because the black market can offer untaxed bonuses with dubious terms and conditions.

"We see the key reasons for recent black market growth from minimal levels before 2018 as the 2017 tax on gaming bonuses, increasing anti-money laundering-affordability pressures for licensed operators – especially the big brands – and most recently £5 slots.

Former prime minister Gordon Brown has called for gambling duties to be raisedCredit: Leon Neal (Getty Images)

"Gamstop is a secondary driver accounting more for search than underlying behaviour, while we do not see material underage online gambling even in the black market, albeit content streaming alongside gaming has made this an issue."

The CFG said that legal online gambling grew by 19 per cent between 2022 and 2024, compared to 345 per cent for the illegal sector, "a shocking number and one that industry advocates will wish to use to argue for no changes to their revenue reality, gambling regulation and taxes".

However, it added: "That number is entirely explained by what is going on in Great Britain’s black-market basement: vulnerability victimisation of under 18s and self-excluded players."

Reiterating his call for substantial tax increases, Webb said: "Labour, responsible for the 2005 Gambling Act, has a chance to atone for the economic harms caused by electronic gambling by accepting the tax proposal of ex-prime minister Gordon Brown."

That did not tally with comments made by Vali in a recent YouTube interview with financial research and media firm Hedgeye.

Vali told them increasing taxes would mean that "price, product, promotion […] go out the window".

He added: "If you start giving them surprises like 'we are doubling the tax rates', what do you think will happen? People will pull back, there will be less spent, there will be fewer hires, there will be less money going back to the community, and what will happen? Because they are not pricing themselves as competitively as they used to, crime comes in." 

Yield Sec was approached for comment.

Read these next:

Europe's €80bn gambling black market shows the unintended consequences of hiking gambling duty - but will the UK government listen? 

‘The only winners will be the black market’ – Entain warns against betting tax hike 

Punters will be footing the gambling tax bill – or simply moving to the black market to avoid it 

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