New research indicates nearly half of UK gambling ad spend comes from illegal operators.

(AsiaGameHub) –   Studies indicate that the advertising expenditure of unlicensed operators is set to surpass that of the regulated gambling industry within the next two years.

UK.- The Betting and Gaming Council, a lobby group for the British gambling industry, has highlighted research showing that illegal entities now represent nearly 50 per cent of all gambling advertising expenditure in the UK. The group cautions that this figure could exceed 50 per cent within two years.

The data from marketing intelligence firm WARC highlights these trends ahead of a voluntary prohibition on Premier League front-of-shirt gambling sponsors, and as regulated businesses reduce marketing budgets to offset increased British remote gaming taxes.

WARC predicts the total UK gambling advertising market will reach £1.9bn by October 2026. Regulated firms are expected to cut spending by 9.2 per cent this year to £1.1bn, whereas expenditure by unlicensed operators is set to climb by 32 per cent.

Only a few years ago, licensed businesses represented over 80 per cent of the total advertising spend. Based on current trajectories, illegal operators will surpass regulated companies by 2028 to claim the majority of the market’s advertising spend, according to WARC.

As Members of Parliament discuss gambling advertisements this week, the BGC argues that the priority should be identifying the advertisers rather than just the volume of ads, warning that the illicit black market is increasingly occupying the space. The BGC further warns that pressures like proposed financial risk checks and tax hikes could speed up black market growth by making the regulated industry less competitive and pushing players toward unlicensed sites.

Grainne Hurst, the Chief Executive of the BGC, remarked: “This situation should sound an alarm in Westminster. The critical issue is whether the advertising originates from regulated firms, which follow strict guidelines, or from the dangerous illegal black market that ignores all regulations.

“Restricting licensed operators while their ad spend is already declining won’t lower the total amount of advertising; it will only empower the harmful black market that is aggressively pursuing UK consumers. The Government needs to act more decisively and quickly to suppress the black market before the situation worsens.”

WARC noted: “While the UK gambling sector’s ad spend is projected to hit £1.9bn this year, our research shows a two-speed market, where almost all expansion is now coming from unlicensed entities.

“These firms are mostly based abroad and are spending more to reach UK audiences via social media and search engines. Unregulated companies are also heavily utilizing sponsorships and are expected to represent more than half of all gambling sponsorship spend by next year.

“Most notably, unlicensed operators are on track to represent more than half of the total advertising spend in the gambling industry by 2028, marking a major shift in the market landscape.”

The government has suggested a prohibition on sports sponsorships by any firm that does not hold a license from the Gambling Commission.