BGC cites growing European black market concerns ahead of gambling act review
Trade body highlights link between heavier restrictions and rise of unlicensed operators across the continent
The Betting and Gaming Council (BGC) has implored the government to recognise the dangers of a growing black UK market ahead of the gambling act review.
Citing a report published by PricewaterhouseCoopers (PwC), the BGC said British customers using unlicensed sites had more than doubled in two years from 220,000 users to 460,000.
The PwC report also claims the amount being staked on the black market is well into the billions of pounds.
The BGC commissioned the report to explore the relationship between stricter gambling laws and the backlash of growing black markets across Europe, ahead of what will be the most major change to gambling law in the UK in almost two decades.
The report noted markets such as France and Norway where the black market now accounts for more than 50% of all money staked, with both countries operating some form of gambling monopoly.
In Spain and Italy, where gambling advertising has been all but eradicated, each market has more than 20% of its total stake money flowing into the black market.
The PwC report said: ““Whilst it is not possible to isolate the impact of individual regulatory characteristics, the above assessment suggests that jurisdictions with a higher unlicensed market share tend to exhibit one or more restrictive regulatory or licensing characteristics.”
Michael Dugher, BGC CEO, said by opening the door to black market operators it would have a severe economic impact for the government.
He said: “We support the gambling review but there is a real danger that it leads to the regulated industry being smaller and the illegal black market growing substantially.
“This research is stark about the dangers of the black market, we have to learn lessons from abroad, and make the right choice at this dangerous crossroads.
“BGC members alone employ nearly 120,000 people and pay £4.5bn in tax in the UK. The black market, of course, pays no tax and employs no one in our country,” he added.
The white paper is expected to be released in May of this year having previously been anticipated to land towards the end of 2021.