‘A threat becoming reality’ – BHA concerned over growing illicit betting

The British Horseracing Authority (BHA) has expressed concern over a new International Federation of Horseracing Authorities (IFHA) study which demonstrates a considerable growth in traffic on sites not licensed in the UK.

The research, which covers 2021 to 2024, found that in four years, the total number of unique visits to 22 of the most popular non-UK-licensed sites which take bets on British racing grew by 522%.

Meanwhile, over 600,000 unique visits per month took place between January and September 2024.

BHA Acting CEO, Brant Dunshea, expressed that from the outset of the Gambling Act Review, British racing has ‘repeatedly warned of the unintended consequences of well-meaning policy decisions on our sport’, including the threat of inadvertently growing illegal market activity.

He said: “This study certainly demonstrates that very concerning threat becoming reality.

For every racing customer that leaves the legal market for the illegal one, they are putting themselves at increased risk with lessened consumer rights and protections. Unlicensed operators also make no financial contribution to the ecosystem of British racing or the Exchequer.

“While noting increased enforcement action in recent months by the Commission, we will be sharing these findings with the Government and hope it will work with us to encourage bettors to stay in the legal market given this growing leakage.

“The study serves as a further reminder of why it’s important for gambling regulations to be both balanced and proportionate, with those who are betting safely on racing allowed to do so without interruption.”

The report was conducted by James Porteous, Head of Research for the IFHA’s Council on Anti-Illegal Betting and Related Crime.

In the BHA’s response, the organisation also highlighted that during January to September last year, the number of unique visits per month to 10 legal UK licensed sites (all of which offer British racing) grew by just 49%.

Meanwhile, the total number of visits to these unlicensed sites increased by 131% in four years, with almost 1.3m visits per month taking place in those same months. Additionally, the total number of visits to 10 legal UK licensed sites grew by just 25%.

Although the study has been described as ‘limited in scope’ and not presenting the full picture, the BHA remained certain that while the illegal market remains small in comparison to the legal market, its growth has accelerated considerably in recent years.

The news comes at a time when British racing has lost £1.6bn worth of remote betting turnover in just two years. 

In the BHA’s October 2023 Right to Bet survey of over 14,000 racing bettors, it was found that one in 10 were already using the illegal market for betting.

The authority concluded: “While no direct causation is drawn in the study between the policy announcements made by the UK Government on gambling in recent years and a move to the illegal market, the current trend does echo that seen in other jurisdictions internationally where moves to tighten regulation in the legal market has driven customers away.”

Other concerning news for the industry was revealed last week when Grainne Hurst warned of black market gambling being used to raise funds that support illegal business empires.

Speaking of these concerns at the annual Gambling Anti-Money Laundering Group (GAMLG) training event, she added: “As a sector, we should lead the way in making certain our products are not hijacked and misused by those engaged in illegal activity, activity that has no place in our sector, activity which undermines our laws and our society.

“While we work hard in this space, as you will hear today, we are also acutely aware how black market gambling is already being used by those criminal elements to raise funds that support their illegal business empires.”