For a long time, the online gambling waters in the UK have been relatively calm. As one of the pioneers in the industry, the UK has often been the first to approach and tackle many of the challenges that have been presented by the rise of this form of online entertainment.
The objective of significantly reducing gambling addiction amongst the playing population has remained at the top of the UK Gambling Commission’s (UKGC) agenda once the Gambling Act in 2005 permitted online gambling.
However, one problem that has constantly plagued the industry in the UK and indeed in other markets worldwide is the presence of illegal, illegal market online gambling operators. Unlicensed online casinos and online bookmakers have been a constant nuisance to the industry for many reasons.
The lack of regulation allows unlicensed providers to operate outside the frameworks and regulations set up in individual markets and in the UK, the UKGC has continually worked to identify and eliminate illegal gambling activity. And with the Autumn Budget set to alter the landscape of the gambling industry in the UK, the illegal industry problem could be set to be become even greater.
Why do online gamblers seek illegal providers?
There are a variety of reasons why underground online gambling websites are sought after. Players might seek a non-UK casino for example because they are disgruntled with the raft of restrictions placed on online casino play at operators licensed under the UKGC.
Players that are underage can unfortunately access and interact with these websites that offer little in the way of verification of player protection. And probably most worrying for the UKGC, the illegal market allows self-excluders to get around the GAMSTOP and GamCare blockers that are put in place to protect their wellbeing.
Autumn Budget Anguish
Wednesday 26th November could represent a significant moment for the gambling industry in the UK. When Rachel Reeves announces her Budget in a few weeks’ time, the consequences could be dire for licensed gambling companies and could even be seen as a win for the illegal market. If, as expected, taxes on gambling companies are increased, the primary concern for legal operators is the increase in costs that could potentially drive customers away and in the worst-case scenario, towards illegal market providers.
Alarmingly for the UK government and UKGC, the illegal market currently represents 9% of the total online gambling market, which equated to £379 million worth of lost revenue in the first half of 2025. With a potential increase on taxes on gambling operators on the horizon, the issue for the UKGC is how to police and monitor a potential wave of traffic towards illegal websites.
Tense wait for the UK gambling industry
9% is already a considerable number of players playing on underground economy operators, and there is the strong potential for that figure to reach double figures, at least in the short term, if the expected tax increases are announced. In a digital environment that is already difficult to control, especially with the effectiveness of VPNs nowadays, the challenge for the UKGC could get even harder. In a country that has such a long history with gambling, the landscape could be about to significantly change.
