Black market gambling in the UK surges as tax reform deadline looms
Black market gambling in the UK is surging, just as the Treasury’s consultation on a single Remote Betting and Gaming Duty nears its deadline. Officials are now analysing last-minute submissions ahead of the cut-off at 23:59 on Monday, 21 July, and new data suggests rising offshore activity could have serious consequences for racing, revenue, and player trust.
Industry leaders say the Government’s plan to replace Britain’s three existing gambling taxes with one unified duty risks triggering a mass player migration to unlicensed operators. The Betting and Gaming Council (BGC), the British Horseracing Authority (BHA), and a growing number of MPs have voiced concerns that the harmonisation plan, if set at the higher Remote Gaming Duty rate of twenty-one percent or more, could be devastating. As a previous SiGMA News two-part series shows, when trust in British gambling fades, the black market waits, and that trust is precisely what many in the industry believe is now under threat.
Grainne Hurst, CEO of the BGC, warned that a higher duty rate would be “completely self-defeating for the government, for a whole host of reasons.”
The consultation, first launched in April, proposes merging General Betting Duty, Pool Betting Duty and Remote Gaming Duty into a new regime called Remote Betting and Gaming Duty. Although the Treasury cites administrative efficiency, industry leaders argue that the reform masks a substantial tax hike, particularly for sports betting.
Nearly two-thirds of UK gamblers say they would consider switching
A YouGov poll for the BGC found that 65 percent of UK punters would consider using black market sites if taxes rise. This figure has now become the central warning in the industry’s final submissions to the Treasury. This isnt a new fear. Earlier analysis from SiGMA News highlighted the growing threat of black market gambling in the UK, especially in response to tightening controls and rising economic pressures.
The risk is no longer speculative. Since 2021, unique UK traffic to 22 unlicensed racing websites has surged by 522 percent, according to data from the International Federation of Horseracing Authorities (IFHA). Legal sites saw just a 49 percent increase over the same period. The IFHA reports that affordability checks, product restrictions, and the risk of increased taxes on regulated bets are fuelling black market gambling in the UK.
At the same time, online racing turnover in the UK has decreased by ?1.6 billion (1.9 billion), with much of the decline attributed to affordability checks and a shift in player habits. With many operators already struggling to absorb increased costs, racing’s economic foundation may now be facing a structural threat.
Black market gambling in the UK fuels tax consultation backlash
Submissions from the BHA, BGC, and licensed bookmakers argue that pushing racing bets into the same duty bracket as online 바카라 games ignores fundamental differences in how these products operate. They also say that a tax hike would reducing, not increasing, total tax revenue.
Brant Dunshea, Acting CEO of the BHA, said in a recent briefing that a twenty-one percent flat rate would cost bookmakers around ?66 million (78 million) annually on racing bets alone. Internal modelling shows that a thirty percent rate would increase that figure to ?97 million (114 million), while a forty percent rate could push the hit to ?160 million (188 million). That projection aligns closely with political concern. As covered in SiGMAs report on how the UK horseracing tax plan risks 65 percent black market shift, All-Party Parliamentary Group (APPG) for Racing and Bloodstock members have warned of systemic collapse if harmonisation goes ahead unchecked.
The UK Gambling Commission has stepped up enforcement against unlicensed operators, shutting down 264 illegal sites and issuing 770 cease-and-desist orders since April 2024. Enforcement may be stepping up, but even the sharpest crackdown means little if tax policy continues to price out the legal market.
Hurst also cautioned that racing would be uniquely exposed:
“Increased taxes will undermine the offer across the board, and the reality is, racing is vulnerable to these changes. Any further tax rises will not only slam the brakes on growth for our sector, but they will threaten jobs and completely derail horseracing.”
Dunshea echoed those fears:
“This will punch a massive hole in racing’s finances, risk thousands of jobs across Britain and threaten the future of the country’s second most-popular sport and a cherished national institution.
“We’ve got a very exercised group of MPs raising questions in parliament, and we must focus on convincing politicians that this is a bad idea.”
Policymakers under pressure ahead of the autumn budget
The consultation will officially close at 23:59 on 21 July 2025, with Treasury review and ministerial sign-off expected to follow through August and September. The final duty rate is likely to be announced during the Autumn Budget in October, with October 2027 set as the earliest possible implementation date.
With just days left before the consultation closes, pressure is mounting to address the growing surge in black market gambling in the UK. The Treasury now faces a binary choice: listen to a growing chorus of warnings or risk lighting the fuse on a black market boom that regulation alone may not contain.
The evidence is undeniable. The stakes are real. And if , the damage to racing could be irreversible. Operators, regulators, and policymakers all agree on one thing: what happens next will define the future of Britain’s legal gambling ecosystem.
