The Betting & Gaming Council (BGC) has warned up to £60 million ($79.7 million) was potentially staked with illegal operators during the Cheltenham Festival.
The Cheltenham Festival, which took place last week, is widely considered the biggest event in horse racing, attracting in the region of £1 billion in total stakes.
The BGC warned around £2 million per race was potentially bet at the festival with illegal operators, based on recent data that suggests the illegal market accounts for approximately 6% of total wagers in Great Britain.
BGC CEO Grainne Hurst warned of the risks players take when betting with illegal operators.
“Cheltenham is the biggest week of the year for racing fans and millions placed bets safely with regulated operators,” Hurst said.
“But the criminal harmful black market also tried to cash in, targeting punters with illegal betting that offers none of the protections provided in the regulated sector.”
Black market aided by tightening regulation
Hurst and the BGC also warned of the tightening regulation in Great Britain and how that is potentially fostering a rise in black market activity.
Many warned of the particular impact on horse racing that the 2023 white paper would have, with the introduction of affordability checks deemed as particularly harmful.
In 2024, the Jockey Club cautioned affordability checks could cost the racing industry £250 million over the next five years, with players switching to black market operators to bypass having to submit personal financial documents.
The UK government has also approved a hike in the remote gaming duty from 21% to 40%, with the rise set to kick in from April. Remote sports betting duty is also set to increase from 15% to 25% in 2027.
Hurst warned that such changes in the regulatory environment are spurring black market activity, stating: “Rising taxes and increasingly intrusive checks will only make it harder for legitimate operators to compete.
“The priority must be keeping punters in the regulated market where protections are in place, rather than driving them towards harmful unregulated operators.”
The BGC urged stakeholders to increase efforts to tackle criminal gangs, to both ensure players are protected but also to safeguard the racing sector.
Original article: https://igamingbusiness.com/offshore-gaming/bgc-warns-60-million-illegal-cheltenham-festival-bets/
