A new report reveals 1.5 million Brits gamble at illegal offshore casinos, validating long-held concerns about the UK black market. Critics argue restrictive UKGC measures are fuelling unregulated gambling, undermining legal operators.
It is no secret that industry experts and members of Parliament have criticised the UK Gambling Commission for handling the country's legal gambling sector. One of the main concerns raised across the board is that the commission's knee-jerk approach to every problem or new report would harm licensed gambling and help feed the unregulated sector.
The UKGC has always denied this, claiming that the protections offered by playing at licensed casinos more than makes up for the discomfort caused by the restrictions they have put in place. Talk is cheap, however, as a new report commissioned by the Betting and Gaming Council (BGC) shows billions are being spent each year at illegal casinos.
UK Black Market Online Gambling Report
The BGC-commissioned study, fulfilled by the Frontier Economics consultancy, revealed that an astonishing 1.5 million British gamblers frequent unlicensed offshore casinos every year.
Betting and Gaming Council CEO Grainne Hurst said:
Quote“Proposals by anti-gambling prohibitionists like advertising bans or intrusive, blanket, low-level affordability checks will not protect customers; in fact, they will give another leg up to unscrupulous black market operators, the last thing anyone wants.”
Adding:
Quote“Every comparable market in the world tells us the same thing. The best defence against this growing illegal gambling black market is getting the balance of regulations right.”
According to the report, these players wager up to £4.3 billion at these sites, which, had they been able to bet at licensed casinos, would have meant an additional £335 million in revenue for the local government.
To put the loss that the UKGC’s decisions are causing the country in perspective, they explain that the lost revenue “is the equivalent of up to 1,700 nurses salaries, or up to 1.2 million extra GP consultations or up to 1,500 teacher salaries”.
High Gambling Taxes Need Revision
The reality is that while not all casinos that fail to hold a license from a particular gambling jurisdiction are predatory, it could be a simple cost exercise; the problem is that players will be hard-pressed to distinguish between them, with up to 54% of Brits not knowing what defines a legal gambling site.
Andrew Leicester, Associate Director at Frontier Economics, said:
Quote“Efforts to make gambling safer are important, but must avoid the risk of simply pushing more players and spend into unregulated providers who do not need to comply with regulations around safer play.”
One of the core reasons the report covers for the explosion in black market gambling is high taxes.
Pointing to the negative impact of over-taxation on channelisation, Leicester said:
Quote“Restrictions in Norway resulted in a black market that now accounts for over 66% of all money staked. Another report found that in Bulgaria, 47% of money staked goes to unregulated gambling; in Portugal, it is 31%. Both countries face high rates of gambling taxes.”
While welcome bonuses and other inducements might draw players, licensed operators need to be able to compete due to the cost of doing business in the region.
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