Entain Proposes New Measures to Tackle Black Market Gambling
A newly published report that was supported by Entain and compiled by Regulus Partners outlines a series of policy recommendations aimed at combating the rise of black-market gambling operators.
Entain-backed report calls for strict measures to combat the black market.
LISTEN TO THIS ARTICLE:The report suggests various targeted measures designed to address the growing influence of unlicensed gaming operators to help protect consumers and reduce the tax gap created by these unlicensed operators. The proposed actions include blacklisting illegal operators, restricting their advertising and payment channels, and strengthening criminal enforcement. These steps are crucial for closing a tax shortfall projected to reach £335 million in the UK over the next parliamentary term.
At the SBC Summit in Lisbon, Barry Gibson, chair of Entain, stressed that urgent action must be taken. He warned that unchecked black-market activities pose serious financial and regulatory risks, potentially harming both the economy and consumer protection.
Black Market Participation Rising Despite Regulation
The report shows that even in regulated markets such as the UK, black market gambling continues to expand. In nations like France and Germany, where stringent bans or heavy restrictions on gambling products are enforced, the black-market accounts for a significant portion of gambling revenues, 45% in France and 60% in Germany.
To address this issue, the report proposes five primary strategies: blocking payments to illegal operators, restricting their marketing efforts, and leveraging the UK’s Online Safety Act to limit access to unlicensed sites. It also calls for more robust criminal enforcement and the development of a public blacklist to inform consumers about these illegal platforms.
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Addressing the Economic Impact of Black-Market Gambling
The report follows a study by Frontier Economics, which found that black market operators account for £4.3 billion in gambling stakes in the UK alone, contributing to a tax shortfall of up to £67.7 million annually. Young adults under 35 are particularly affected, as they make up two-thirds of black-market stakes while receiving fewer protections than those gambling on regulated platforms.
In response, Entain is calling for a unified policy approach to safeguard the integrity of regulated UK online casinos, which contributes £7.1 billion to the UK economy and supports 110,000 jobs.
Taking on the black market operators should be a key priority for policymakers around the world. It will tackle crime and raise money which could be spent on critical areas such as healthcare, education, and infrastructure. It would ensure that customers get greater protection from playing with fully regulated and legitimate operators.
This is a pivotal moment; if we go down the route of further tax increases rather than tackle the black market, it will drive even more customers towards unscrupulous operators and damage responsible, regulated businesses.
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