BGC Demands Action as Illegal Gambling Stakes Forecast to Hit £33bn

^{The BGC has called on the UKGC, politicians and other relevant bodies to implement its five-point takedown of illegal gambling sites. (Image: Pixabay/Elchinator)}
 

By Daniel Smyth

The Betting and Gaming Council (BGC) has proposed a five-point plan to prevent up to £33 billion from being wagered on illegal offshore gambling sites.

Following a report by H2 Gambling Capital that UK punters are already risking £17 billion annually on unlicensed sites, the BGC has issued a warning to regulators, politicians, and other industry stakeholders. Among the proposed measures, the BGC is calling for payment processors to be scrutinised as heavily as offshore gambling sites.

Five ways to tackle illegal gambling sites

The BGC's five-point action plan was published on June 8 amid growing concerns that wagering activity with offshore gambling sites could jump from £17 billion to £33 billion by 2028.

"If current trends continue, black market gambling stakes could exceed £33 billion within three years. That should concern anyone who cares about consumer protection and reducing gambling-related harm," said BGC chief executive, Grainne Hurst.

As a standards body, the BGC can only propose new measures. However, it currently represents almost 90% of regulated online casino and sportsbook operators in the UK, so the proposal carries some weight.

It's a direct call to action from one of the largest and most respected organisations within the industry. Because of this, the plan should have some impact on the UK Gambling Commission (UKGC), politicians, and other relevant parties.

BGC wants all access points closed

The BGC's five-point proposal calls for the closure of all gateways currently being used by offshore operators to attract UK bettors. Along with blocking offshore gambling websites at the source, something the UKGC is already doing, the BGC wants to see illegal adverts taken down.

The BGC also wants "tougher criminal sanctions" for illegal operators targeting UK punters, but stops short of suggesting how these would be implemented. Payment processors and so-called "enablers" also feature on the list of proposals.

If the UKGC and politicians were able to stop money from going into illegal gambling sites, it would cut off the proverbial black market beast's head. This, however, might be the hardest proposal to implement.

Preventing payments is no easy feat

The US tried something similar in 2006 with the Unlawful Internet Gambling Enforcement Act (UIGEA). Tagged onto the SAFE Port Act, legislation to protect US borders from terrorist activity, UIGEA made it illegal for offshore gambling sites to process payments from US banks.

UIGEA was largely successful, but it didn't completely stop the flow of money from US gamblers to offshore sites. This resulted in what became known as Black Friday in the gambling industry after the Department of Justice (DOJ) shut down three major poker sites.

Today, even though it's illegal to use offshore sites in the US, some remain operational. The loophole used by many is cryptocurrency. Bitcoin and other cryptocurrencies are decentralised, which means they aren't tied to any country's central bank.

The same sites using this loophole to attract US gamblers are also available in the UK and in other countries around the world. The BGC's five-point plan has merit, but the reality of blocking access to unlicensed sites located outside of the UK is far from easy.

The good news is that change is afoot. The UKGC has committed to spending £26 million over the next three years to tackle illegal gambling. It has also blocked thousands of URLs directing players to unlicensed sites and is in the process of hiring a Head of Illegal Markets.

So, although the black market remains a threat, authorities and representative bodies are forming a united front to tackle the issue.