BGC Warns of Black Market Boom as Licensed Ad Spend Drops

_{Legal gambling ads in the UK now make up just 2.7% of total ad spend, with much of it focused on safer gambling. (Image:Roman Lacheev/Alamy)}

Licensed gambling operators in the UK are cutting back on advertising, but as legal ads fall, illegal online promotions are filling the gap.

A new independent analysis by Alvarez & Marsal, commissioned by the Betting and Gaming Council (BGC), shows gambling ad spend by licensed UK operators fell to 2.7% of the country’s total advertising market in 2024. That’s down from 3% in 2023, continuing a downward trend since 2021.

The decline is largely due to a £30 million drop in television advertising over the past year. In contrast, digital ad spend from illegal gambling sites is on the rise, with an estimated £500-£700 million funnelled into unregulated promotions targeting UK consumers.

Safer Gambling Messaging on the Rise

While the overall volume of licensed ads is shrinking, the content is shifting.

Roughly 20% of legal gambling ads now focus on safer gambling messages, according to the Gambling Advertising and Sponsorship Report 2025. These include deposit limit tools, self-exclusion resources, and risk awareness campaigns.

The results appear promising. During the UK’s most recent Safer Gambling Week, there was a 14% increase in users setting deposit limits and a 22% rise in the use of safer gambling tools compared to the previous year.

Ad compliance remains strong as well. The Advertising Standards Authority (ASA) found that fewer than 0.02% of gambling ads breached regulations in the last year.

Grainne Hurst, CEO of the Betting and Gaming Council, said the data underscores the industry’s commitment to responsibility.

“This independent analysis shows that gambling advertising by licensed operators is continuing to fall, with spend increasingly concentrated on safer gambling messaging and consumer protections,” Hurst said. 

“Our members operate within some of the strictest advertising rules of any industry and continue to raise standards across the sector.” 

Legal gambling advertising also supports more than 9,900 jobs in the UK and generates around £500 million in Gross Value Added (GVA), reinforcing its role in the country’s media and creative sectors.

Unlicensed Ads Escalate on Unregulated Platforms

While regulated operators are scaling back, illegal gambling ads are ramping up in visibility and volume.

The report points to a growing use of influencers, search engine manipulation, and AI-generated content by black market sites. Many of these operators openly boast about not being part of GAMSTOP, the UK’s national self-exclusion scheme. Others go a step further, impersonating charities and public institutions to mislead users.

Adam Rivers, Managing Director at Alvarez & Marsal, said the research provides a “clear picture” of the growing divide between legal and illegal advertising.

“We are pleased to have worked with the BGC on this report, which offers an insight into the state of the gambling advertising and sponsorship sector in the UK,” Rivers said. 

“This is based on actual advertising expenditure data from licensed operators.” 

The BGC has warned that illegal gambling operators now pose the most significant threat to consumer safety, calling for a more targeted crackdown on black market advertising as part of the UK government’s ongoing gambling review.

Illegal Sites Exploiting Consumers

This shift highlights a potential gap in regulatory enforcement. As legal land based and online casino operators tighten their advertising standards and increase consumer protections, illegal sites are exploiting looser online channels, often beyond the UK’s jurisdiction.

With digital black market ads estimated to be outspending licensed operators by a factor of ten, regulators may need to reconsider their approach. Without action, there’s a risk that more players will be exposed to gambling environments with no age checks, no accountability, and no recourse when things go wrong.

Real-World Risks: Black Market Targeting Children, Gamers, and Football Fans

Recent enforcement cases show how illegal operators exploit vulnerabilities, especially among younger audiences and through cultural touchpoints like gaming and football.

In one high-profile case from November 2024, the Gambling Commission uncovered illegal gambling websites targeting users of a popular online platform primarily used by children. The sites tricked users into handing over login credentials, enabling them to steal in-game currency and convert it into gambling credits. The websites ignored cease-and-desist orders and were ultimately taken offline after domain registrars and search engines intervened. The legitimate platform confirmed it had not consented to the misuse of its brand or customer data and is pursuing legal action.

Another case involved a third-party gambling website using the in-game currency of a sandbox MMO video game with broad appeal to children. The game’s currency had real-world value due to a secondary market, where players exchanged it for fiat or cryptocurrency. After a cease-and-desist order, the site implemented geo-blocking. The Gambling Commission reminded the game’s developer that third-party gambling using its in-game items could fall under UK gambling law, urging more proactive action against such platforms.

In a separate incident in July 2025, leaked images showed a football club kit sponsored by an unlicensed gambling site believed to be based in Vietnam. Though the site was accessible in the UK, it was incomplete and non-functional. After intervention by the Gambling Commission, the football club dropped the sponsor and confirmed it would ensure no UK exposure to the unlicensed operator.

These cases illustrate the evolving tactics used by black market operators, from hijacking video game economies to attempting mainstream sports sponsorships, and highlight the urgent need for regulators and brands to stay vigilant.

Volume of illegal Online Ad Campaigns Not Acceptable

Posting on Linkedin Christian Heins, Director of iGaming at Tipico asked the question: 
How do black‑market online casinos and betting operators manage to run ads all across Germany? 

_{Christian Heins. (Image: Christian Heins/Linkedin)}

Heins explained: 

"It’s much easier than most people think, once you know how the system works and understand how porous the compliance frameworks of major platforms like Meta, Google, Bing Search, Snapchat for Business, Taboola DACH, Outbrain and many others really are."

Heins concluded by saying: 

"Here’s the scale of the problem: In November alone, we identified around 350k different ad campaigns on Meta targeting German users."

"The month before, the number was 75k. This is simply unacceptable.

"If we want better channelisation and a safer, regulated environment for players, we cannot continue to ignore what is happening in plain sight."