Gambling Commission chief executive Andrew Rhodes has claimed the threat from the gambling black market has been overstated but acknowledged the importance of getting the balance of regulation right to prevent customers being driven to illegal operators.
The regulator has been warned that measures such as intrusive affordability checks could force punters to use the black market to place their bets.
This year the Racing Post’s ‘Big Punting Survey’ found that 3.6 per cent of respondents had used a black market operator in the last 12 months, while a further 11 per cent knew someone who had.
A third of respondents said they would either consider going to the black market or definitely do so if they were unable to bet what they wanted with regulated bookmakers.
However, Rhodes told the Culture, Media and Sport Select Committee on Tuesday: “Talking to a lot of people around the industry and in the GB market actually the size of the black market is very small, but estimates do vary.”
Gambling Commission chief Andrew Rhodes faces questions at a culture, media and sport select committee meeting
Rhodes said the regulator had been proactive in tackling the black market, including geoblocking four of the ten largest illegal domains.
He added: “Every time I’ve heard someone say to me, ‘Based on what’s happening here, people are going to the black market’, I have asked them the same question, ‘Tell me where’.
“And I have not once had an answer. I have not once been given the name of an operator or a person or a location or anything I can act upon and I have consistently asked that question every time.
“There’s undoubtedly a risk that if people cannot gamble in the legitimate industry for a number of reasons they may go somewhere else so we have to get the balance right which I think is what the white paper is trying to do.”
A PwC report commissioned by the Betting and Gaming Council claimed the proportion of UK online gamblers using unlicensed operators in 2020 had increased to 4.5 per cent – or around 460,000 people – from 2.2 per cent over the previous one to two years. The amount staked had doubled to £2.8 billion.
To complete the Gambling Commission’s consultation on affordability checks, visit racingpost.com/consultation and follow the instructions.
The Racing Post also wants to hear from you: What has been your experience of affordability checks since the white paper was published at the end of April, and what do you think of the government’s proposals? Have affordability checks affected your betting behaviour?
It’s a chance for your voice to be heard. Email the Racing Post at [email protected] with the subject ‘Affordability checks’ to share your experiences, your thoughts about the government’s proposals, and your contact details.
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