A recent survey conducted by the Betting and Gaming Council (BGC) found that 79% of British bettors believe that limiting the amount of money that can be wagered with licensed operators would push customers towards unregulated black market gambling sites, where unlimited bets are allowed. Additionally, the poll indicated that 70% of British bettors would rather place their bets with bookmakers who do not require them to provide private financial documents. The BGC commissioned this study ahead of the Cheltenham racing event to determine the impact of the black market on the local economy and to provide the government with relevant insights before publishing a Gambling White Paper containing new reforms for the industry.
The study further revealed that about 280,000 people are expected to attend Cheltenham, generating around £274 million for the local economy out of an estimated £1 billion handle over the four-day event. However, both bettors and bookmakers are worried that affordability checks may drive bettors away from licensed operators to unregulated ones. The BGC’s CEO, Michael Dugher, emphasized the need for non-intrusive checks to target and protect the tiny minority of vulnerable punters. Dugher warned that an intrusive and blanket approach may have the opposite effect by pushing punters into the unregulated black market, which does not offer safer gambling tools, support the economy or sport, and does not pay taxes.
Betting is a popular hobby in the UK, with around 22.5 million adults placing a bet each month. However, studies show that the number of users of unregulated bookmakers has increased from 210,000 to 460,000 over the years, driving the black market handle to billions of pounds. The BGC reports that 15% of bettors have used the services of unregulated bookmakers. The introduction of wagering restrictions may push 15% of bettors towards unlicensed bookmakers, reducing the industry’s gross generated revenue and the country’s tax revenue. Therefore, the government must balance the announced gambling reforms, taking into account the concerns of both bookmakers and bettors.