The Betting and Gaming Council (BGC) has launched a new interactive game to help bettors stay safe while playing online. 'Spot the Black Market' is an interactive quiz that has players try to differentiate unregulated betting sites from those with legitimate, lawful licences.
Player risks from black market betting
Black market gambling sites are unlicensed, which means they don't have to follow the same regulations as regulated sites. Players can lose money, with no recovery, if a gambling site chooses to withhold funds. The sites do not have the same level of fraud and theft checks in place, either.
The UK Gambling Commission website warns: "Consumers face increased risks from unfair gaming practices, financial loss, and a lack of recourse if things go wrong.
"We are also aware that some illegal gambling sites are blocking payouts or setting withdrawal limits so high they're unattainable.
"Separately, there are serious data protection concerns for players, with risks of identity theft and fraud."
It is estimated that approximately 1.4 million Brits use unregulated sites every year, risking more than £4bn of wagers.
The BGC also highlights the lack of player protection measures. Whereas regulated sites offer age, affordability, and self-exclusion checks, black-market sites do not.
Figures suggest as many as one million Brits have a gambling problem, showing the importance of implementing these safety measures.
Keeping players on licensed UK sites
Unregulated sites do not pay tax, either. According to the most recent figures, the UK Government raises approximately £4bn a year from gambling tax.
With recently announced tax rises coming into force from April, tax revenue and black market activity have been a bone of contention for the Government.
In last November's budget, Chancellor Rachel Reeves announced iGaming duty would nearly double, increasing from 21% to 40%, starting in April 2026. Online bookmakers will also see increases, albeit to a more reasonable 25%, from next year.
The Chancellor claims that the changes will raise an additional £1bn a year.
Industry and financial experts have disputed that figure and cautioned that the increases will lead more players to black market sites.
With the Chancellor unwilling to walk back the proposed changes, the BGC and the UK Gambling Commission are attempting to keep players on UK-licensed websites.
On the launch of the game, which is available now on the BGC website, a spokesperson for the BGC commented: "This campaign is about exposing the hidden dangers of the black market. These unregulated sites deliberately mimic trusted brands but play by none of the rules that keep people safe.
"Our new 'Spot The Black Market' game shows just how easily consumers can be deceived, and reinforces the importance of choosing licensed, protected operators."
The BGC is the standards body for the UK betting and gambling industry. It is one of the groups that has openly opposed tax increases, claiming they threaten the industry and will lead to unemployment, while putting players at unnecessary risk.
