Illegal Gambling Operators Challenge UK Market with £379m Growth in 2025

The UK gambling industry is often regarded as one of the most heavily regulated in the world, with its core authorities enforcing strict rules to protect players. Yet new figures show that the black-market sector is finding ways to thrive. According to data from anti-fraud platform Yield Sec, illegal operators now account for 9% of the overall market, generating £379m in the first half of 2025 alone. That represents a steep rise from just 0.43% in 2020, with the sector doubling in size almost every year since the pandemic.

While the regulated market continues to generate billions in revenue, concerns are mounting that unlicensed platforms are eroding consumer protection and targeting the most vulnerable players.

Are They Exploiting Self-Excluded and Underage Gamblers?

Yield Sec’s analysis points to a clear trend: unlicensed operators are not competing for mainstream gamblers but instead focusing on those who have been locked out of the legal market. The Not on Gamstop phenomenon has become the engine behind this growth, with 84% of all illegal gambling promotions tied to brands offering ways for self-excluded players to bypass the national self-exclusion scheme.

With more than 532,000 people registered with Gamstop and an estimated 25% attempting to re-enter the market, Yield Sec estimates that self-excluded players may already be losing over £426m to illegal sites. When underage gambling losses are added, the overall value of the black-market sector could be closer to £583m.

Unlicensed operators are also taking advantage of gaps in online visibility. Search engines and social media platforms have become accidental gateways, surfacing illegal sites to those looking for ways around UK regulations. Although there have been steps to improve this, the speed at which unlicensed operators adapt poses an ongoing challenge.

The Real Challenge for the UK’s Regulated Gambling Market

The rise of the illegal market comes at a time when the UK gambling industry is under increased scrutiny. Reforms linked to the government’s Gambling Act review have proposed tighter affordability checks, limits on online slots stakes, and stronger advertising restrictions. Licensed operators argue that while these measures are designed to protect consumers, they may also push players toward unregulated alternatives if the legal market feels too restrictive.

Yield Sec also flagged inconsistencies in how affiliates drive traffic. More than 1,600 affiliates now promote illegal brands compared with around 7,000 working with licensed operators, making the promotional landscape harder to police. With 700 unlicensed sites already active, the regulator faces a significant task in trying to close down access and protect consumers.

The UK Gambling Commission has repeatedly warned that black-market operators pose a serious risk because they are not required to offer player safeguards such as self-exclusion, deposit limits, or checks against underage play. The Commission has also pledged to collaborate with technology firms, financial institutions, and international regulators to disrupt illegal operators’ reach.

Yet the latest figures highlight how resilient the illegal sector has become. Without stronger enforcement and a coordinated industry response, the rise of the black market could undermine confidence in the UK’s regulatory framework and weaken the protections that have long been considered a hallmark of the country’s gambling industry.