Britain’s gambling industry has long warned of “black market” threats whenever tax hikes or tighter rules are proposed. But new research shows the real crisis is not about mainstream players moving offshore—it’s about crypto-powered illegal casinos deliberately targeting vulnerable people who tried to opt out of gambling.
Tax Fears vs. Reality
The Betting and Gaming Council (BGC) recently promoted survey results suggesting higher taxes could push nearly a third of gamblers toward unlicensed platforms. Their message to policymakers: overregulation benefits the black market.
BGC CEO Grainne Hurst even argued that stricter rules would hand an advantage to illegal operators who pay no taxes, contribute nothing to British sport, and ignore safer gambling protections.
But independent research tells a very different story.
Who Illegal Operators Really Target
A detailed investigation by marketplace intelligence firm Yield Sec found that the boom in Britain’s illegal gambling isn’t driven by price-sensitive punters chasing better odds. Instead, it’s fuelled by two groups who shouldn’t be gambling at all:
- Underage users
- Self-excluded players
Britain’s national self-exclusion program, GAMSTOP, was created in 2018 to allow problem gamblers to block themselves from all licensed sites in one step. Over half a million people are now registered. But Yield Sec’s research shows that the black market has pivoted to target these very individuals, using crypto as a loophole to bypass protections.
The “Not on GAMSTOP” Boom
A disturbing trend is the rise of “Not on GAMSTOP” marketing. Search the phrase online and you’ll find endless affiliate sites and operators openly promoting unlicensed casinos as “alternatives” for excluded gamblers.
Yield Sec identified more than 700 unlicensed sites and over 1,600 affiliates pushing them in the UK market. Since 2022, this illegal ecosystem has grown by over 300%, dwarfing the growth of the licensed sector.
For underage players, the problem extends into so-called “skin gambling” tied to popular video games, where in-game items are used as betting chips—normalizing gambling for teenagers.
Crypto’s Role in the Loophole
Cryptocurrency makes these schemes even harder to police. Licensed operators must block excluded players’ debit cards and verify their identities. But with Bitcoin, stablecoins, and other digital assets, illegal casinos can bypass banking checks and onboard players with little or no KYC.
As a result, protections like GAMSTOP become meaningless. Research suggests that self-excluded gamblers lose over £400 million per year to illegal crypto casinos—nearly three-quarters of the black market’s revenue.
Weak Enforcement and Big Tech’s Blindspot
While the UK Gambling Commission has issued hundreds of cease-and-desist notices, enforcement struggles to keep pace with the sheer scale of offshore operators—many licensed in lenient jurisdictions such as Curaçao or Malta.
Search engines and social media platforms also play a role. Although Google has restricted paid ads for “Not on GAMSTOP,” organic results still point users toward unlicensed operators. Affiliates use influencer marketing and youth-oriented content to reach vulnerable groups, deepening the problem.
Industry Narratives vs. Actual Risks
The BGC often frames illegal gambling as a side effect of tax hikes. But this narrative conveniently shifts attention away from the industry’s failure to protect those at greatest risk.
Derek Webb from the Campaign for Fairer Gambling explains it bluntly: “Illegal casinos aren’t competing for mainstream customers. They are hunting the excluded and the underage, groups defined by law as vulnerable.”
A Better Path Forward
Solving this issue requires targeted regulation—not tax breaks for licensed casinos. That means:
- Treating “Not on GAMSTOP” marketing as deliberate exploitation of vulnerable groups.
- Holding search engines and social platforms accountable for facilitating access.
- Recognizing crypto payments as a major enabler and tightening oversight of digital gambling rails.
Until regulators address these realities, Britain’s black market will keep expanding—no matter what tax rate licensed operators pay.
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