UK Casino: BGC foresees black market expansion due to gaming review

UK Casino: BGC foresees black market expansion due to gaming review

The Betting and Gaming Council is encouraging government officials to “take lessons” from a variety of European nations, warning that the UK is “at a critical crossroads” in terms of online casino black market concerns. This comes on the heels of publishing industry research by PwC on behalf of the BGC, as the government continues work on the highly anticipated gaming review.

Delayed Review of Gaming Act 2005

However, recent reports indicated that the review of the Gambling Act 2005 by the Department for Digital, Culture, Media, and Sport will be delayed until May 2022. Following that, the industry standards organization states that the investigation uncovered the appalling scope of black-market gambling in European countries, noting that “British gamblers using unlicensed sites more than doubled in just two years, from 220,000 to 460,000 users.”

This analysis indicates that the UK’s online gambling sector is more ‘open’ and currently has a lower unlicensed market share than our European comparator. While it is impossible to isolate the effect of particular regulatory features, the preceding assessment indicates that jurisdictions with a greater unlicensed market share are likely to have one or more restrictive regulatory or licensing characteristics. According to the analysis of comparable regions, illicit markets currently account for 66%, 57%, and 23% of all money staked in Norway, France, Italy, and Spain, respectively.

In addition, Denmark has warned of a possible 9% increase in black market share, with much-reported difficulties in Sweden also mentioned. It supports the gambling study, but there is a serious risk that it will result in a smaller regulated industry and a significant increase in the illegal black market,” noted Michael Dugher, BGC CEO.

Critical Time for British Gaming Sector

This research is unequivocal about the hazards of the illegal market; they must take lessons from other countries and make the correct option at this difficult fork in the road. BGC members employ approximately 120,000 people and contribute £4.5 billion to the UK’s tax revenue. Of course, the illicit market pays no taxes and provides no employment in our country. Any shift to the dangerous illegal market would also jeopardize the £350 million per year that members presently contribute to horseracing through sponsorship, media rights, and the betting levy – financial assistance that was critical during the pandemic.

About Lou De Aguila

Lou Aguila is a news and feature writer for Golden Casino News. For over a decade, Lou has published news and featured articles for some of the most reputable sports betting and online casino sites in the world, including BetNow.UK, VegasOdds, and BWin. Apart from being a hardcore live casino punter, he also covers sports stories in North American leagues from time to time.