Black Market Fears Dominate BGC AGM as Regulator Signals Openness to Innovation

_{Baroness Twycross and Grainne Hurst at the BGC AGM. (Image: BGC/Linkedin)}

Illegal gambling, rising costs, and the future of crypto payments took centre stage as industry leaders and the UK Gambling Commission set out competing risks, and shared priorities – at the Betting and Gaming Council’s 2026 AGM.

The UK’s regulated gambling sector is at a crossroads.

At the Betting and Gaming Council’s Annual General Meeting on 26 February 2026, industry leaders warned that tax hikes and regulatory pressures risk pushing players towards illegal operators. At the same event, the Gambling Commission’s executive director Tim Miller signalled a willingness to support innovation, including exploring crypto payments, while insisting consumer protection remains non-negotiable.

For casino owners, online operators, and players alike, the message was clear: the battle against the black market will define the next phase of UK gambling policy.

Black Market Moves to the Top of the Agenda

“This year things were a bit different,” BGC chief executive Grainne Hurst told members in her address to the AGM.

“Perhaps inevitably, the focus of our AGM was on the harmful, illegal black market.”

Operating outside UK regulation, tax structures, and consumer protection rules, unlicensed sites have become a growing concern for licensed operators who argue they face mounting compliance costs while illegal competitors do not.

“Operating outside UK regulation, tax and consumer protections, this growing criminal market presents serious challenges for both customers and the regulated sector,” Hurst said.

She pointed to a “clear consensus in the room” that further policy changes, including last year’s tax increases, could accelerate consumer migration away from licensed brands.

“Illegal operators exploiting UK consumers must be tackled.”

The BGC has repeatedly argued that rising fiscal and regulatory burdens risk undermining the competitiveness of the regulated market. HM Treasury confirmed in the Autumn Budget 2025 that gambling duties would be restructured, prompting warnings from some operators about margin pressure and potential channelisation impacts. Channelisation refers to the proportion of players who gamble with licensed operators rather than unregulated ones, a metric widely seen as critical to consumer protection.

For casino businesses, the stakes are commercial and reputational. For players, the risk is more direct: unlicensed sites offer no recourse through UK dispute resolution, no mandatory safer gambling checks, and no oversight from the Gambling Commission.

Regulator: Change, but Not Retreat

Miller acknowledged the industry’s concerns, opening his speech with a nod to wider uncertainty.

“The fact that I am here today, does point to the fact that we are all going through a time of change right now,” he said, referencing the upcoming departure of Gambling Commission chief executive Andrew Rhodes and the ongoing implementation of the Gambling Act review.

_{Tim Miller speaking at the BGC AGM. (Image: Gambling Commission/Linkedin)}

While recognising pressure on operators, Miller rejected the suggestion that recent reforms are the main driver of black market growth.

“That is not me accepting that recent regulatory changes have been one of the top drivers to the illegal market. Our research does not provide evidence for that conclusion.”

He defended the tougher enforcement stance of recent years, noting that past compliance failures were “so widespread and so egregious that stronger regulation was both needed and was inevitable.”

At the same time, he signalled that the regulatory environment may be entering a more stable phase. Multimillion-pound penalties are no longer occurring “almost weekly,” he observed, though he warned operators not to “lose focus on compliance.”

The Commission, he said, wants to maintain early compliance and collaboration with industry, even as it expands enforcement against illegal operators.

Illegal Market Taskforce and Big Tech Pressure

Miller highlighted the Government’s Illegal Gambling Taskforce, which brings together regulators, financial institutions, and social media platforms. He confirmed he chairs one of its subgroups.

He said action cannot fall solely on licensed operators and regulators.

“As I said at ICE last month, there is more that others outside the industry need to do as well, social media firms, big tech and affiliates need to make a concerted effort.”

He added that he had recently met with Meta, which had committed to further cooperation, particularly around “not on gamstop” advertising, a common phrase used by illegal sites targeting self-excluded UK players.

For operators, this signals potential relief if tech platforms more aggressively restrict illegal gambling advertising. For players, it could mean fewer pathways to unlicensed brands.

Fees, Funding, and the Cost of Regulation

The Commission is also consulting on increases to its regulatory fees, the first review in five years. Miller acknowledged frustration over timing, given recent tax changes and the introduction of the statutory levy to fund research, prevention, and treatment of gambling harm.

He argued that the requested uplift would increase Commission income from 0.21% to 0.28% of total industry gross gambling yield, excluding the National Lottery.

The additional Treasury funding of £26 million over three years for illegal market enforcement, announced in late 2025, will be taxpayer funded. Other regulatory activity continues to rely on industry fees.

If the uplift is not approved, Miller warned the Commission may need to “scale back, slow down or stop” certain activities.

Crypto: From Red Flag to Policy Discussion

Perhaps the most notable forward-looking element of Miller’s speech was his openness to discussing cryptoassets as a payment option for licensed gambling in Great Britain.

In December 2025, the Government laid the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 before Parliament, bringing cryptoasset activities within the Financial Conduct Authority’s regulatory perimeter. The new regime is expected to take effect on 25 October 2027, subject to parliamentary approval.

Against that backdrop, Miller said the Commission now wants to examine whether there is a viable path for regulated crypto use in gambling.

“And that, as well as the growing appetite we see from punters, means we do now want to start looking at what the potential path forward would be to create a way for cryptoasset to be used as a consumer payment option for licensed and regulated gambling in Great Britain.”

He linked crypto directly to illegal market migration, stating that Commission research shows it is one of the top search routes leading British consumers to unlicensed sites.

“There will be significant challenges and risks to overcome,” he cautioned, but added he is keen to approach the issue in “the spirit of exploring the art of the possible.”

For online casino operators, this could mark a significant shift. Crypto payments are currently widespread on offshore platforms but largely absent from the UK licensed sector. For players, the debate centres on speed, privacy, and security versus volatility, affordability checks, and anti-money laundering controls.

A Shared Interest in Keeping Players Inside the Regulated Market

Despite areas of tension, both the BGC and the Commission framed the illegal market as a shared threat.

Hurst described the AGM as “an important opportunity for the industry to come together,” even amid serious challenges.

Miller closed by reaffirming the Commission’s core mission.

“At the Gambling Commission, we still want to work with you and others to make gambling safe, fair and crime free.”

The next phase of UK gambling policy may hinge less on headline reforms and more on execution: enforcement against illegal operators, measured regulatory stability, and whether innovation within the licensed market can outpace what offshore competitors offer.

For operators, the question is competitiveness. For policymakers, it is channelisation. For players, it is trust.

And for all three, the black market is no longer a side issue, it is the central battleground.