For a long time, the online gambling landscape in the UK was relatively calm. As one of the pioneers in the industry, the UK was the first to approach and tackle the many challenges posed by the rise of this form of online entertainment.
Even after the Gambling Act 2005 allowed online gambling, the goal of significantly reducing gambling addiction among the playing population remained a top priority for the UK Gambling Commission (UKGC).
However, one of the issues that has always plagued the industry in the UK, and indeed other markets around the world, is the presence of online gambling operators in the illicit illicit market. Unlicensed online casinos and online bookmakers have always been a nuisance to the industry for a variety of reasons.
The lack of regulation allows unlicensed providers to operate outside the framework and regulations set by individual markets, and in the UK the UKGC continues to work to identify and eliminate illegal gambling activity. And with the Autumn Budget set to change the landscape for Britain’s gambling industry, the illegal industry’s problems could become even bigger.
Why do online gamblers seek illegal providers?
There are many reasons why underground online gambling websites are popular. Players may ask for Casinos outside the UK For example, because they are dissatisfied with the many restrictions placed on online casino play by licensed operators under the UKGC.
Unfortunately, underage players can access and interact with these websites, which offer little in the way of ensuring player protection. And, perhaps most worryingly for the UKGC, the illicit market is allowing self-excluders to circumvent the GAMSTOP and GamCare blockers put in place to protect their health.
Fall budget woes
Wednesday the 26thth November could be a crucial month for the UK gambling industry. When Rachel Reeves releases her budget in the coming weeks, it could be seen as a disaster for licensed gambling companies, or even a victory for the illegal market. If taxes on gambling companies increase as expected, the biggest concern for legal operators will be increased costs that could potentially drive customers away, or in the worst case scenario, drive them to illegal market providers.
Worryingly for the UK Government and UKGC, the illicit market is now becoming more prominent. 9% of the total online gambling marketThis equates to £379m worth of lost revenue in the first half of 2025. With potential tax increases on gambling operators on the horizon, the question for the UKGC is how to police and monitor the potential wave of traffic to illegal websites.
Tension awaits Britain’s gambling industry
The 9% figure is already a significant number of players playing in underground economy operators, and once the expected tax increases are announced, this number is likely to reach double digits, at least in the short term. In an already difficult-to-control digital environment, the UKGC’s challenges may become even more difficult, particularly with the recent effectiveness of VPNs. In a country with a long history of gambling, things could be about to change dramatically.
Source: Our Culture – ourculturemag.com
