The illegal gambling market is no longer a marginal issue. It is a growing, sophisticated threat that targets consumers, exploits gaps in enforcement, and undermines the protections built into regulated gambling markets. The harm is real and increasing, particularly for vulnerable consumers. Tackling it requires coordinated action from regulators, policymakers, law enforcement agencies, payment providers and digital platforms.
What is the illegal gambling market?
The illegal gambling market consists of operators that accept customers or market gambling services where they are not licensed to do so. Examples include offshore casinos targeting UK consumers without a Gambling Commission licence, "Not on GAMSTOP" websites aimed at self-excluded players, crypto casinos operating outside regulated financial systems, and gambling promoted through social media and messaging platforms. Many are designed to look like legitimate operators, making them difficult for consumers to identify.
The scale of the challenge
Research from H2 Gambling Capital shows the UK illegal gambling market has more than tripled since 2019. Offshore Gross Gambling Yield (GGY) grew from £200 million to £685 million between 2019 and 2025, while offshore betting turnover increased from £5 billion to £16.6 billion. The Office for Budget Responsibility has also forecast a £500 million shortfall in gambling tax revenues by 2029–30 as consumers migrate to unlicensed operators. Across Europe, Yield Sec estimates illegal operators generated €80.6 billion in 2024, equivalent to 71% of the total online gambling market.
Key stats
The UK OFBR forecasts a shortfall of around £500 million in UK gambling tax revenues will be lost to the black market by 2029–30
of customers were unsure of the difference between licensed and unlicensed gambling sites.
of UK school children estimated to be potentially engaging with unlicenced gambling products.
Why it matters
The illegal market is a direct threat to consumer protection. Unlike licensed operators, illegal sites do not provide self-exclusion tools, safer gambling interventions, affordability protections or access to independent dispute resolution.
Entain's surveying of customers found:
- 48% of customers were unsure of the difference between licensed and unlicensed sites.
- 25% had encountered unlicensed operators.
- More than half of those encounters originated on social media.
Illegal operators actively target vulnerable consumers. "Not on GAMSTOP" has become a common marketing tactic aimed at players who have self-excluded from regulated gambling. The risks for younger audiences are also significant. Research suggests more than one in five 18–24-year-old gamblers have used unregulated sites.
The Black Market with Barry Gibson
In this exclusive interview, industry veteran and Entain Chair, Barry Gibson, uncovers the growing threat of the black market. Through real-world examples and expert insights, this interview underscores the need for regulatory action to counter the growing threat of underground gambling.
Watch the full video hereRegulation and unintended consequences
A successful regulatory framework must protect consumers while ensuring the licensed market remains attractive and competitive.
Experience shows that when regulation becomes overly restrictive or taxation becomes disproportionate, consumers do not stop gambling — they migrate to operators that offer no protections at all.
In the Netherlands, spending with unlicensed operators overtook the regulated market following a gambling tax increase in 2025, highlighting the risk of unintended consequences.
Addressing the illegal market requires action across six areas:
- Payment disruption – blocking transactions to unlicensed operators.
- Platform accountability – requiring online platforms to verify gambling advertisers are licensed.
- Sponsorship reform – preventing unlicensed operators gaining visibility through sport.
- Stronger enforcement – faster site takedowns, meaningful penalties and prosecutions.
- Consumer awareness – helping consumers identify illegal operators.
- A competitive regulated market – ensuring consumers have strong incentives to remain within the licensed sector.
Driving Action Against Illegal Gambling
Entain is not standing on the sidelines of the illegal market challenge and we are actively working to expose, disrupt and reduce it.
We are using the full breadth of our global business and expertise to shine a light on illegal gambling, bringing together data, insights and evidence that help policymakers, regulators and partners understand where and how the market operates — and how it can be tackled.
But insight alone is not enough. We are taking practical steps to drive change:
- Leading the evidence base – commissioning research and publishing insights to reveal the scale, impact and drivers of illegal gambling, ensuring the issue cannot be ignored
- Engaging policymakers and regulators – advocating for balanced, effective regulation that protects consumers while reducing the incentives that push them towards illegal markets
- Supporting enforcement efforts – partnering with stakeholders across payments, platforms and law enforcement to help identify and disrupt illegal activity
- Championing consumer awareness – helping players better understand the risks of unregulated operators and the protections they give up outside the licensed market
Alongside this, our Illegal Gambling Playbook sets out a practical, cross-sector framework for tackling the issue — from enforcement and regulation through to platform accountability and consumer education — designed to support coordinated action across markets. To request a copy, contact CorporateAffairsTeam@EntainGroup.com
We believe tackling the black market requires proactive leadership, not passive compliance. By combining our scale, data and partnerships, we are working to protect consumers and support a safer, sustainable future for regulated gambling.
To learn more, explore the latest insights and perspectives from our work on the illegal market below.
"Disproportionately increasing gambling taxes will not only have a detrimental impact on our industry but also heighten risks for customers. As seen in other countries, punitive tax increases can reduce tax revenues while driving players to illegal, unregulated operators."