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The Betting and Gaming Council warned that the black market was ready to cash in during the Cheltenham Festival, with as much as £60 million staked illegally over the four‑day meeting.
That figure works out to about £2 million per race. Cheltenham itself is estimated to attract close to £1 billion in betting stakes during the Festival, making it one of the biggest weeks in Britain’s £11 billion annual horse racing turnover.
Analysis suggests that around 6% of all betting in Britain now flows through illegal operators. Applied to Cheltenham alone, this share translates to tens of millions wagered outside the regulated market.
With roughly £8 billion placed legally online each year, the BGC says the Festival highlights how much money continues to slip into unlicensed channels despite the strength of the regulated industry.
“Cheltenham is the biggest week of the year for racing fans and millions placed bets safely with regulated operators,” Grainne Hurst, Chief Executive of the Betting and Gaming Council.
“But the criminal harmful black market also tried to cash in, targeting punters with illegal betting that offers none of the protections provided in the regulated sector. Rising taxes and increasingly intrusive checks will only make it harder for legitimate operators to compete. The priority must be keeping punters in the regulated market where protections are in place, rather than driving them towards harmful unregulated operators.”
UK’s strict gaming market might be aiding black market, analysts warn
Warnings have grown that tighter rules in Britain’s gambling sector are pushing more players toward unlicensed operators.
The Betting and Gaming Council and Grainne Hurst pointed to the government’s 2023 white paper, which introduced affordability checks, as a major concern for horse racing. The Jockey Club later cautioned that these checks could drain £250 million from the sport over five years, with bettors turning to the black market to avoid handing over personal financial details.
Tax hikes are adding further pressure. From April, the remote gaming duty will rise from 21% to 40%, while the remote sports betting duty is set to climb from 15% to 25% in 2027.
“The priority must be keeping punters in the regulated market where protections are in place, rather than driving them towards harmful unregulated operators.”
Hurst argued that higher taxes and intrusive checks make it harder for licensed firms to compete, leaving space for illegal operators to grow. The BGC has urged industry and government to step up efforts against criminal gangs, stressing that stronger action is needed both to protect players and to safeguard racing’s future.
