Unlicensed Betting Sites: A Growing Menace for the UK's Horse Racing Industry
Unauthorized betting sites experience a notable surge of 522%, according to the UK horse racing regulatory body.
Worry clouds the British Horseracing Authority (BHA) as the UK's illegal betting market expands due to a staggering surge in unlicensed betting site usage.
Last week, the BHA sounded the alarm, drawing attention to a study by the International Federation of Horseracing Authorities (IFHA). The study found a meteoric rise in the number of unique visits to over 20 of the most popular unlicensed betting sites in the UK over a four-year period between 2021 and 2024, with an astonishing 522% increase during this timeframe[3][5].
According to the IFHA study, the month-on-month unique visits to such sites topped over 600,000 during the first nine months of last year[5].
BHA's Acting CEO, Brant Dunshea, has been at the forefront in voicing concerns over the UK government about the perilous impact of the burgeoning illegal market on the industry. Dunshea stressed that the IFHA findings underscore the "concerning threat becoming a reality"[6].
A Severe Warning to the Government
In a public statement, Dunshea announced that the BHA would share the IFHA's findings with the government, hoping it would collaborate to persuade bettors to remain within the legal market[5].
The BHA has been vociferous in its opposition to the introduction of affordability checks. In a 2023 statement, the BHA cited a Racing Post editor as stating that these checks were driving bettors towards the black market and away from regulated operators[5]. Dunshea reiterated the BHA's call for a balanced and proportionate approach to gambling regulations, emphasizing the need for regulations that allow safe betting without unreasonable interruptions[6].
Contrasting the increased popularity of unlicensed sites, the IFHA study showed only a modest 49% increase in visits to the ten most popular regulated UK betting sites between January and September[5].
A Limited but Significant Study
Although the BHA deemed the IFHA study as "limited", it acknowledged the rapid growth of the unregulated sites in recent years[5]. Last week, the BHA also highlighted a troubling trend: British racing has experienced a steady decline in remote betting turnover, losing an estimated £1.6bn ($2m) worth of turnover in just two years[5]. The BHA concluded that this trend mirrors worldwide developments in regulation where tightening control in the legal market has caused customers to migrate to illegal platforms[5].
Mitigating Concerns: Potential Solutions
While specific solutions from the BHA are not detailed in the available information, addressing these concerns likely involves:
- Balanced Regulation: Ensuring that regulations are not overly restrictive and drive bettors to unlicensed sites by reviewing current rules and making legal betting more appealing and competitive.
- Product Improvement: Improving the product offered by legal betting sites to create an attractive alternative to unregulated platforms by offering more competitive odds or innovative betting options.
- Education and Awareness: Raising awareness about the risks associated with unlicensed betting sites and the benefits of using regulated platforms.
- Collaboration: Working in close collaboration with regulatory bodies like the UK Gambling Commission to strengthen enforcement against illegal sites and bolster the regulated market.
- The British Horseracing Authority (BHA) is concerned about the growth of unlicensed betting sites in the UK, stating that they pose a significant threat to the horse racing industry.
- In a public statement, BHA's Acting CEO, Brant Dunshea, announced the intention to share a study by the International Federation of Horseracing Authorities (IFHA) with the government, urging collaboration to persuade bettors to remain within the legal market.
- In contrast to the increased popularity of unlicensed sites, the IFHA study showed only a modest increase in visits to the ten most popular regulated UK betting sites.
- BHA's opposition to the introduction of affordability checks was highlighted in a 2023 statement, with concerns that these checks were driving bettors towards the black market and away from regulated operators.
- Concerned about the rapid growth of unregulated sites, BHA has outlined potential solutions to mitigate the problem, including balanced regulation, product improvement, education and awareness, and close collaboration with regulatory bodies like the UK Gambling Commission.
