EUROPEAN BLACK MARKET
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2026 will also welcome back the London Gaming Congress (LGC) now in its second year and with the huge impact the event had in March the next edition is going to be massive and we already have speakers lining up and sponsors confirming for the 18th March date held again at the stunning iconic Savoy Hotel.
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Lana Thompson - Editor
September special edition
Welcome to the latest edition of the Infinity Gaming Magazine and now the Summer is behind us and we enter Autumn, that means it’s time to gear up for the 2026 International Gaming Awards (IGA). Now in its 19th year the IGA is such a special evening.
Nominations are open till the 18th October for this charity focused event and as always free to enter and have the chance of winning one of the most coveted awards within the industry at what will be the awards event of the year.
Pop over to the gaming-awards.com website to see all the categories you can enter, once more the IGA will be taking place in Barcelona on the 18th January.
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Now to the magazine and we have a focus edition looking at the World of Illegal Gambling from all areas of the World, it is a great read. Also a special on the art of lobbying.
Enjoy the latest edition of the magazine and until next time..... “To Infinity and Beyond!”
Regards, Lana
The Editor & Chief
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In August, New York’s online sports betting market experienced a rise, with total wagers surpassing the $2 billion mark for the first time since May. The New York State Gaming Commission reported that the total handle for August reached an impressive $2.04 billion. This figure represents a 41.9% increase compared to August of the previous year and a 45.9% rise from the $1.4 billion wagered in July.
Gross gaming revenue for the month was recorded at $178.2 million, marking a 42.6% increase year-on-year and a 14.5% rise from July’s figures. Despite this growth, it is noteworthy that August’s revenue was the thirdlowest monthly total in the current calendar year, suggesting that while the handle has increased, the revenue generation has not kept pace with previous highs.
The hold percentage for August stood at 8.72%, a figure that reflects the operators’ ability to retain a portion of the total wagers placed.
FanDuel, operated by Flutter Entertainment, continued to lead the market in terms of revenue. The platform reported a revenue of $66.9 million from a handle of $561.9 million, achieving a hold of 11.91%.
DraftKings secured the second position despite handling more wagers than FanDuel. The operator reported a revenue of $62.3 million from a total of $579.6 million in bets, resulting in a hold of 10.75%.
Fanatics reported a record revenue of $16.1 million from a handle of $565.8 million. This handle represents an all-time monthly high for the operator, driven in part by a single bettor placing nearly $120 million in wagers
during one week in August. However, the hold for Fanatics was relatively low at 2.85%, indicating that while the volume of bets was high, the profitability was not as robust.
BetMGM generated $13.8 million from a handle of $130.4 million, achieving a hold of 10.58%.
Caesars reported $10.7 million in revenue from $113.5 million in bets, with a hold of 9.43%.
Rush Street Interactive earned $4 million from a handle of $40.8 million, resulting in a hold of 9.8%.
ESPN Bet closely followed with $3.6 million from the same handle, achieving a hold of 8.82%.
Bally Bet and Resorts World trailed behind, with revenues of $839,409 and $229,357, respectively.
As part of our feature edition on the illegal gambling market, we look at the growth within the UK market space and the challenges for licensed operators.
Arecent report carried out by gambling intelligence platform Yield Sec and covered by The Racing Post indicates that illegal online gambling operators have captured approximately nine per cent of the online betting sector in the UK, a stark increase from just two per cent in 2022.
The black market for gambling has seen an increase of 345 per cent, with illegal operators reportedly generating £379 million in revenue during the first half of 2025. This growth has been attributed to the activities of over 531
illegal sports betting and casino operators actively targeting British customers.
One of the primary concerns highlighted in recent studies is the targeting of vulnerable populations, particularly self-excluded individuals and minors.
The Campaign for Fairer Gambling (CFG) has pointed out that the rise of illegal bookmakers is largely driven by their ability to exploit these groups, rather than merely being a reaction to regulatory measures such as affordability checks and betting limits. This targeting raises ethical questions about
the practices of these illegal operators. In light of these developments, industry advocates are urging the government to take decisive action. Derek Webb, founder of the CFG, has called for a substantial increase in gambling duties, echoing proposals made by former Prime Minister Gordon Brown. Webb argues that the illegal sector does not compete fairly with established brands but instead preys on the most vulnerable, pushing addictive content through marketing strategies that circumvent existing regulations.
Ismail Vali, CEO of Yield Sec, has
expressed concerns about the implications of illegal gambling for mainstream consumers. He argues that there is little incentive for regular gamblers to engage with illegal operators, as they cannot compete on price, product, or promotion. Instead, the illegal market primarily attracts those who are already vulnerable, such as underage individuals and those on self-exclusion lists.
While some analysts attribute the growth of the black market to the targeting of vulnerable groups, others argue that a combination of factors is at play. Paul Leyland from Regulus Partners suggests that the increase in illegal gambling is influenced by various elements, including the introduction of taxes on gaming
bonuses and heightened scrutiny of licensed operators.
Leyland also points out that the black market’s growth is not solely a result of targeting vulnerable populations. He notes that the introduction of a £5 limit on online slot stakes and increased antimoney laundering measures have created an environment where illegal operators can thrive. This suggests that regulatory measures, while intended to protect consumers, may inadvertently drive some bettors towards unregulated platforms.
The UK is one of the oldest and most mature gambling markets in the world, concerns over the increase in black market penetration with gamblers moving to the un-regulated market creates concern of the lack of protection.
The UK Government needs to be more focused on removing the presence of illegal overseas gambling operators from the UK first prior to any tax increase, or it creates an atmosphere where un-regulated operators will grow offering bonuese and no-limit on gambling spend.
One gambling consultant said it best, “you cannot increase taxes on the licensed gambling industry and do nothing about the illegal gambling market, you just create a growing storm that favours those who do not license themselves and takes all the benefits away from regulated tax paying operators.”
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Boyd Gaming Corporation has confirmed that it was the victim of a cyberattack, leading to the unauthorised access of its internal IT systems. The company disclosed the breach in a recent filing with the U.S. Securities and Exchange Commission (SEC).
The company reported that an unauthorised third party gained access to its internal information technology systems. The company stated that while the breach did not disrupt its operational capabilities, it did result in the exfiltration of sensitive data. This included personal information related to employees and a limited number of other individuals.
In response to the breach, Boyd Gaming has initiated a notification process for those affected. The company says it is also committed to informing relevant regulatory bodies and government agencies as mandated by law.
To address the breach, Boyd Gaming has enlisted the help of federal law enforcement agencies and external cybersecurity experts. This collaboration aims to investigate the incident thoroughly and implement effective response strategies.
Boyd Gaming has indicated that it holds a cybersecurity insurance policy, which is expected to cover various costs associated with the breach. These costs may include forensic analysis, legal claims, regulatory fines, and overall response and remediation efforts.
Despite the breach, Boyd Gaming has assured stakeholders that its properties and business operations remain unaffected. The company operates 28 gaming establishments across ten U.S. states, employing over 16,000 individuals. In 2024, Boyd Gaming reported an impressive annual revenue of $3.9 billion.
The cyberattack on Boyd Gaming is part of a new trend, as the gaming industry has seen a rise in similar incidents. Just last week, local authorities apprehended a teenager linked to a sophisticated cybercrime operation targeting multiple Las Vegas casino operators. Although specific companies were not named, both MGM Resorts International and Caesars Entertainment were reportedly among those affected.
The increase in cyberattacks on casinos and government institutions highlights a concerning trend. On August 24, Nevada state officials confirmed that a ransomware attack had severely disrupted several state government services, including the Department of Motor Vehicles and social services.
At present, no individual or group has claimed responsibility for the cyberattack on Boyd Gaming.
The US gambling market doesn’t deal very well with this ongoing challenge even as legal options expand. One out of every three dollars spent on gambling in America moves through unregulated channels. This piece will get into the AGA’s latest findings on illegal gambling’s market penetration. We’ll look at the sectors most affected and outline solutions to tackle this growing issue.
Americans Americans bet $673.6 billion each year through illegal and unregulated US online gambling operators. This massive amount makes up nearly onethird (31.9%) of the total US gambling market, which shows how illegal betting has taken root in the country[-3]. Black market operations rake in about $53.9 billion in yearly revenue while states lose an estimated $15.3 billion in significant tax revenue.
The American Gaming Association’s (AGA) latest report shows US citizens bet around £534.95 billion yearly with illegal and unregulated gambling operators. This massive figure makes up much of total US gambling activity. The effects reach way beyond the reach and influence of the gaming industry.
The AGA analysis reveals the black market for gambling has grown by 22%
since their previous report in 2022. this growth was fueled through three main reasons:
*A sharp rise in illegal iGaming operations
*Expanding use of unregulated skill machines
*Persistent illegal sports betting activi -
Offshore betting rings and unregulated machine operators rake in £42.81 billion in annual revenue. Licenced operators suffer direct harm while state governments lose vital tax revenue. The AGA estimates these illegal operations cost states about £12.15 billion in lost taxes each year.
Offshore betting rings and unregulated machine operators rake in £42.81 billion in annual revenue. Licenced operators suffer direct harm while state governments lose vital tax revenue. The AGA estimates these illegal operations cost states about £12.15 billion in lost taxes each year.
“Illegal gambling operators are thriving at the expense of American consumers, syphoning billions in tax revenue from state governments, and undercutting the efforts of the legal market,” stated AGA president and CEO Bill Miller. His statement echoes growing worries among industry stakeholders about unlicensed operators’ expanding influence.
Unregulated operators now
What’s really worrying regulators and legitimate operators is the huge market share now controlled by illegal gambling operations. The AGA report shows unregulated operators make up nearly one-third (31.9%) of the total US gambling market. This means one in every three pounds wagered in America flows through illicit channels.
The market share has stayed steady despite legal gambling options expanding across many states. Legal sector growth hasn’t stopped illegal operators. They’ve kept their foothold by adapting their offerings and targeting specific market segments.
Different gambling verticals show varying effects. Americans bet more than £436.79 billion yearly on just two mainly online sectors—illegal sportsbooks and iGaming sites. Unregulated skill machines, now exceeding 625,000 units nationwide, generate about £24.06 billion in annual revenue.
These illegal operations lack consumer protections or responsible gambling measures that licenced operators must provide. Miller put it clearly: “These bad actors operate in the shadows with zero consumer protections, no responsible gaming obligations, and no economic return to the communities they exploit”.
This large illegal market highlights the challenges regulators and law enforcement agencies face. They work to direct gambling activity into regulated environments that protect consumers and generate tax revenue for public services.
Illegal iGaming Revenue Surges to $18.6bn
The black market for online casinos stands as America’s biggest unregulated gambling sector. Revenue has jumped to £14.77 billion ($18.6 billion) based on AGA’s findings. These numbers show a big 38% jump since 2022. iGaming leads the growth in black market gambling.
Online slots and table games dominate illegal sector
Online slots and table games now rule America’s underground gambling world. Americans bet around £370.24 billion each year on these illegal digital casino games. These games easily beat all other black market sectors. Offshore operators rake in huge profits without paying regulatory costs or following compliance rules that legal operators must follow.
Black market iGaming spreads differently across regions. Southern states have no legal online casinos, and players there bet £119.76 billion yearly on illegal sites. This puts £4.76 billion in unlicensed operators’ pockets. The midwest follows with £2.94 billion in illegal earnings from £72.90 billion in bets. The west (£1.59 billion) and northeast (£1.51 billion) show lower but still big illegal activity.
iGaming tax losses reach $4.8bn annually
This black market hits more than just legal businesses. States lose about £3.81 billion ($4.8 billion) in tax money each year from illegal iGaming. This money could help fund public services, schools,
and infrastructure.
These illegal sites skip all consumer protection rules that licenced operators must follow. They often:
Target at-risk players, including those who’ve blocked themselves through gambling programmes
Run weak social responsibility programmes
Use basic anti-money laundering checks
Put customers at risk of scams and unfair games
Legal-only player base drops from 52% to 24%
Player habits have changed drastically in the last three years. Players using only legal sites dropped from 52% in 2022 to just 24% today. Players using both legal and illegal sites nearly tripled to 49%. This shows that even people with access to legal options still use illegal sites.
Legal gambling’s growth hasn’t stopped illegal sites from getting customers. Illegal operators offer better odds, bigger bonuses, and fewer limits than legal sites. States without legal iGaming leave players with only offshore sites as options.
Market share numbers tell the story clearly. States with full online gambling (sports betting and casinos) see regulated platforms taking about 57-58% of gross gaming revenue. States with limited or no legal gambling see illegal operators controlling 85-100% of the market. This shows how legal options directly affect black market activity.
Unregulated Machines Generate $30.3bn in Revenue
Unregulated gaming machines have become one of the fastest-growing parts of illegal gambling in the US. These machines generate a staggering £24.06 billion ($30.3 billion) in yearly revenue. These devices have turned into a major threat to legal gambling operations and rob states of billions in tax revenue they badly need.
625,000+ machines now in operation across the US
The number of unregulated gambling machines keeps growing at an alarming rate. The US now has more than 625,316 of these devices, which shows a 7.7% jump since the AGA’s last count in
- 2022. This quick growth shows how big a challenge regulators and law enforcement face all over America.
These unregulated machines make up about 40% of all gaming machines in the United States. Legal casinos and slot routes run around 870,000 machines, which shows just how big this unregulated market has become. This shadow industry keeps growing even as legal gambling options expand.
Players bet about £98 billion each year on these unregulated devices. The operators make huge profits while offering none of the safety measures that licenced places must provide. The machines also take more money from players than legal ones do. Legal slot machines in Nevada keep 7.16% of bets, but unregulated machines take almost 25%—more than three times what regulated devices do.
Machines found in bars, restaurants, and convenience stores
Unlike legal gambling that stays in licenced casinos, these unregulated machines pop up everywhere in everyday spots. You’ll find them mostly in:
Bars and taverns
Convenience stores and gas stations
Restaurants and cafes
Strip malls and small retail locations
These easy-to-find spots let the machines run with little oversight and target people who might be vulnerable. The operators often call them “skill games” to get around the law, but they work just like regular slot machines.
These machines showing up in local places worries many people. After learning that these devices pay less tax and face fewer rules than casino slots, 64% of Americans who knew about them said they were concerned about having
them in their communities.
States lose $9.5bn in tax revenue from these devices
The money problems from this unregulated sector go beyond just player safety. States miss out on about £7.54 billion ($9.5 billion) in yearly tax revenue because of these machines. This money could help pay for important public services and projects across the country.
These unregulated machines run without any real oversight, which creates big risks for everyone. The lack of proper controls means these devices might be tied to other crimes like money laundering, drug dealing, and violence.
Law enforcement has started fighting back. Police in Pennsylvania took more than 400 illegal gambling devices from various places in western counties and charged the operating companies with felonies. All the same, there are too many machines spread out everywhere to catch them all.
The size of this unregulated machine problem shows why the AGA and others in the industry want stronger enforcement. With billions in revenue and tax money at stake, stopping this ever-changing part of illegal gambling remains a top priority for both the in-
dustry and regulators.
Legal sports betting is growing across America, but much of the wagering still happens through illegal channels. The latest AGA report explains positive trends and ongoing challenges to curb black market bookmakers.
Estimated $84bn wagered annually with illegal sportsbooks
Americans bet £66.71 billion with illegal bookies and offshore sportsbooks each year. These unregulated operators make £3.97 billion in revenue. State governments lose about £0.79 billion in tax revenue because of this. The total value of illegal sports betting has grown by £15.88 billion. Yet its market share keeps dropping as legal betting options become more available.
The black market thrives in states without regulated sports betting. JMP Securities’ data shows that 23% of all sports bets in 2024 went through offshore accounts or bookies, even where legal options exist. Some regions see much higher illegal betting rates, where unregulated operators control up to 70% of the market.
One in ten bettors still use illegal channels exclusively
Today, 10% of American sports bettors only use illegal channels. This number has dropped from 15% in 2022. Yet this loyal customer base creates ongoing problems for regulators and law enforcement.
The biggest problem is that bettors don’t know if they’re gambling legally. About 70% of sports bettors who use illegal platforms think they’re either using legal sportsbooks or splitting their bets between legal and illegal operators. This confusion happens because:
38% of bettors trust a site’s legal claims at face value
36% believe media coverage of odds means legitimacy
32% depend on search results to check if a site is legal
Black market share drops from 36% to 24% since 2022
Illegal operators’ control of the US sports betting market has dropped from 36% in 2022 to 24% today. Legal betting sites
are winning customers from unregulated platforms.
The future looks promising as 46% of current illegal sportsbook users plan to switch to legal options next year. On top of that, 90% of legal platform users will stick with their choice. This shows users are happy with regulated services.
People choose legal sportsbooks because they trust their bets will be paid (71%) and feel their accounts are secure (68%). Support for legal sports betting has grown since PASPA’s repeal in 2018. This is a big deal as it means that 85% of Americans now agree with the Supreme Court’s decision to allow state-regulated sports wagering.
American Gaming Association (AGA) President Bill Miller has called for coordinated action against unlicensed operators who undermine the regulated US gambling market, responding to the alarming growth of illegal gambling.
Bill Miller urges stronger enforcement and international cooperation
“It’s time for a national crackdown on the pervasive illegal market that is draining state coffers and putting people at risk,” Miller emphasised. The AGA has asked the US Department of Justice to make enforcement against major offshore operators a priority, specifically naming Bovada, MyBookie, and BetOnline. Miller believes domestic enforcement alone won’t solve the problem and calls for stronger international collaborations to shut down offshore sites. His strategic plan combines efforts with policymakers, law enforcement, and regulators to remove legislative ambiguity.
These unregulated platforms now operate “with zero consumer protections, no responsible gaming obligations, and no economic return to the communities they exploit”. Illicit operators target vulnerable populations, including people who have self-excluded through responsible gambling programmes. They bypass significant regulations like mandatory ID checks and anti-money laundering measures. Communities lose vital resources for infrastructure, education, and public safety due to illegal gambling.
The Innovation Group’s complete study for the AGA relied on a survey of 2,454 American adults that dissected their gambling behaviours with both legal and illegal operators. The research also included:
Publicly available market data
Observations of unregulated gaming machines
Interviews with industry stakeholders
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apan pushing forward with integrated resorts (IRs), with the first casino set to open on Yumeshima Island in Osaka by 2030. The development is a partnership between MGM Resorts and local partners, and MGM in related news this week announced that Steve Zanella as president and chief executive of its Japan operations. At present he is the president of operations for MGM Resorts.
The project, sanctioned under the Integrated Resort Implementation Law of 2018, aims to attract millions of visitors annually and generate substantial revenue. However, the initiative has sparked considerable debate, particularly concerning the potential rise in gambling addiction and its associated societal impacts.
The Japanese government envisions the casino as a catalyst for economic growth, projecting that it could draw up to 20 million visitors each year. The anticipated annual revenue from the resort is estimated at around 520 billion yen (approximately US$3.4 billion). This influx of tourists is expected
to bolster local businesses and create thousands of jobs.
The development of the casino resort is part of a larger plan to enhance infrastructure in the Kansai region. The complex will not only feature gaming facilities but also hotels, restaurants, shopping areas, and entertainment venues. This multifaceted approach aims to position Osaka as a premier destination for international tourists.
Despite the economic promises, public health advocates are sounding alarms about the potential for increased gambling addiction. Critics argue that Japan is ill-equipped to handle the fallout from expanded gambling opportunities. Reports indicate that the gambling industry, including pachinko parlours, generates an estimated 20 trillion yen annually, yet funding for addiction prevention measures remains alarmingly low at around 840 million yen (approximately US$5.6 million).
In 2024, police and health ministry data recorded 398 gambling-related suicides, a figure that advocates believe is likely underreported. Noriko
Tanaka, a representative from the Society Concerned About Gambling Addiction, emphasised that the true number of gambling-related deaths could be significantly higher, as many suicides are not attributed to specific causes.
Young people are particularly at risk as online gambling becomes more prevalent through mobile applications and social media platforms. A survey by the National Police Agency revealed that approximately 3.37 million individuals have engaged with online casinos, with many unaware that such activities are illegal in Japan.
In response to growing concerns, the Japanese government has taken steps to address gambling addiction. In June, the Basic Act on Measures to Counter Gambling Addiction was revised to prohibit new online casinos and related advertising. This legislative update aims to curb the proliferation of illegal gambling activities and enhance public awareness of the associated risks.
The most Recent data paints a concerning picture of Europe’s online betting and casino market. Black market gambling operations now control 71% of the continent’s industry since 2024. The value of this illegal sector has reached a massive €80.65 billion ($93.5 billion), which signals a crisis for regulated operators that demands immediate attention.
The latest figures show that Illegal operators have grown by 53% while regulated sectors lag behind at 30% growth. Last year, more than 6,200 unlicensed operators actively pursued customers throughout the EU. European Union governments have lost about €20 billion in tax revenue because of these illegal operations in 2024.
A recent Yield Sec report shows how the European gambling market has changed drastically. Unlicensed operators now dominate the market share, while legal operators struggle to compete against rising black market alternatives.
Yield Sec’s data reveals trends in Eu -
rope’s gambling industry. Unlicensed operators control 71% of all online gambling activity across the European Union. These illegal operations continue to grow and expand their reach compared to previous years.
The report shows how black market entities work without any real consequences. They target vulnerable consumers and bypass regulatory frameworks meant to protect players. These operators don’t follow any rules about marketing, player protection, or responsible gambling. Players often choose these unregulated sites without knowing the risks because they seem
more attractive than legal options.
€80bn in illegal revenue dwarfs €33bn legal market
Black market dominance has created massive financial consequences. Unlicensed operators made €80.65 billion in revenue during 2024. Legal operators earned only €33.26 billion. This huge gap shows how the black market has overtaken the regulated sector.
The growth rates tell us even more, Illegal gambling has grown by 53% over the last several years. The regulated market grew by just 30%. Current regulations haven’t stopped this problem from getting worse.
These illegal operations hurt more than just the gambling industry. They don’t pay taxes or support public services. They don’t fund programmes to help people with gambling problems. Instead, they take billions from local economies without giving anything back to society.
The black market has become huge. More than 6,200 different unlicensed gambling operators targeted European consumers in 2024. They run sophisticated platforms that offer sports betting, casino games, and poker.
These illegal operators often target places with the strictest rules. They find gaps in regulations and offer services without following local laws about advertising, age checks, or responsible gambling. They can give better bonuses and promotions than legal operators because they don’t follow any rules.
Technology makes it hard for authorities to stop these operations. Many use cryptocurrency and VPNs to avoid
detection. Regulators try to block these sites, but operators quickly create new ones or find other ways to stay online.
Legal businesses face a tough battle against these illegal entities. The regulated market will keep losing ground as long as illegal operators can offer better deals to players.
Research shows a worrying trend in Europe. Heavy regulation and tax hikes make gamblers turn to illegal operators. This change from regulated to unregulated platforms creates major challenges for governments that need to protect consumers while keeping markets viable.
The link between taxation and “channelling” (the share of gambling in licenced sector) tells an intricate story.
A Copenhagen Economics report from 2016 revealed that countries with tax rates above 20% had channelling rates below 80%. The UK, which had Europe’s lowest tax rate back then, boasted the highest channelling rate at about 90%.
In spite of that, a newer study, published in 2016 by researchers who examined 29 European countries found “no evidence of a negative correlation between taxation rates and channelling rates”. Some research hints that “higher tax rates may sometimes be associated with more effective channelling”. To cite an instance, Denmark raised its tax level from 20% to 28% in 2021, yet its channelling rate stayed stable and grew for online betting.
The UK gambling market thrived before recent regulatory changes. The Copenhagen Economics report stated that “the optimal tax rate for both channelling and for maximising tax revenues was between 15 and 20 per cent”. This matched the UK’s strategy at that time.
This balance now faces threats. Yield Sec founder Ismail Vail warned about serious risks from raising UK gambling taxes: “If you increase the tax rate, price, product, promotion – the fundamental three Ps in this business – go out the window”. He also warned these changes would make legal operators less competitive and let “crime” enter the market.
Tough affordability checks drive players to unregulated sites. The British Horseracing Authority saw total betting turnover drop by 6.8% compared to last year, and 16.5% compared to 2022. Richard Wayman, the BHA’s director of racing, had “no doubt” this decline was “headed by the impact of affordability checks”. Players now choose unlicensed operators that don’t require such checks.
The problem grows worse. New reports show illegal gambling in the UK has “completely blindsided” politicians. Players now bet £4.3 billion with illegal operators compared to £2.8 billion in 2020. The Telegraph called affordability checks “a disaster” and “a billion-pound marketing campaign for illegal gambling”.
Bonus restrictions might make things worse. Industry experts say these changes could be “less intrusive” than other White Paper measures. Yet they add another rule that puts legal operators at a disadvantage.
Regulus Partners spotted several reasons for black market growth: “tax on gaming free plays which gave the black market an advantage in bonusing, greater scrutiny of operators by the Gambling Commission over affordability and anti-money laundering (AML) checks, and more recently the £5 limit on online slot stakes”.
The evidence shows that well-meant rules create collateral damage that might hurt the very consumers they want to protect.
The black market gambling scene in Europe costs much more than lost market share. This underground economy creates a crisis for governments, legitimate businesses, and public services that depend on gambling taxes.
Illegal gambling hits European economies hard. EU governments lost around €20 billion in tax money during 2024 alone. This money could have helped
fund public services. The British Treasury now loses £500 million each year as unlicensed operators continue to grow.
This problem reaches beyond Europe. Australian authorities lose £317.66 million yearly to unregulated gambling sites. The American Gaming Association reports that the United States misses out on £10.56 billion every year.
These huge losses mean less money for healthcare, education, and infrastructure. Many experts now see illegal gambling as “pure and simple theft” from countries, their businesses, and their people.
Licenced gambling companies face unfair competition. Illegal operators make £2.40 for every £1 earned by regulated companies[122]. Yield Sec calls this a “Jenga tower” situation. Legal restrictions make things worse as unlicensed sites grow stronger.
Black market sites win customers by offering better bonuses and promotions. Players say this is the main reason they choose these platforms. These operators skip taxes and can give untaxed bonuses with questionable rules.
Yield Sec founder Ismail Vail warns that higher tax rates hurt legal operators’ “fundamental three Ps”—price, product, and promotion. This makes them less competitive and gives criminal enterprises more room to grow.
British horseracing shows how changes in gambling rules can hurt dependent industries. The British Horseracing Authority’s economic study reveals that matching bookmaker tax rates with online games could cost racing £330 million over five years.
This change puts 2,750 jobs at risk in just the first year[153]. Strict affordability checks make things worse. Half of all bettors say they’ll stop or cut back their horseracing bets if these rules stay.
Experts predict the Horserace Betting Levy will drop by 11% while media rights value falls 15%. This hits hard at a sport that needs gambling money to survive.
Yield Sec points to government policy as the main catalyst for black market expansion. Their research shows a growing gap between regulated and illegal operators. They describe it as a “Jenga tower” effect. Licenced companies face strict advertising bans, deposit limits, and cross-selling restrictions. These restrictions make unregulated competitors stronger. Illegal operators use these regulatory gaps to their advantage. They offer quick registration without ID checks, flexible deposit limits, and cross-platform gambling products that skip responsible gambling rules.
Alex Roberts, Director of Policy at the Betting and Gaming Council, says “a combination of taxation, regulation and restrictions” could push customers to illegal markets that are “dangerously easy to access”. Users can start gambling on black market sites “within minutes, seconds perhaps”.
Allwyn International has announced its intention to acquire a majority stake in the daily fantasy sports (DFS) platform, PrizePicks. The acquisition, valued at up to $4.15 billion, marks Allwyn’s ambitious entry into the growing US DFS market, with the company aiming to establish a strong foothold in a sector that has seen explosive growth in recent years.
Allwyn’s acquisition of PrizePicks involves purchasing a 62.3% stake for an initial cash payment of $1.6 billion. This transaction will enhance Allwyn’s presence in the US gaming landscape, complementing its existing operations, which include the Illinois Lottery. The deal is expected to close in the first half of 2026, pending regulatory approvals and other closing conditions.
This acquisition is part of Allwyn’s broader strategy to diversify its portfolio and expand its digital offerings. The company has recently undergone a transformation, appointing Kresimir
Spajic, the former CEO of Betfred US, to lead its new digital business unit.
Founded in 2015, PrizePicks has rapidly emerged as one of the fastestgrowing DFS operators in the United States, currently operating in 45 states. Unlike traditional DFS platforms that require users to draft entire teams, PrizePicks offers a unique model where players can predict the over/under on individual player statistics.
In the 12 months leading up to June 2025, PrizePicks reported an adjusted EBITDA of $339 million, highlighting its robust financial performance. The acquisition deal includes performance-based incentives that could increase the total valuation to $4.15 billion if certain metrics are met over the next three years.
Following the acquisition, PrizePicks will continue to operate as a standalone entity under the leadership of its current CEO, Mike Ybarra. This continuity is expected to facilitate a
smooth transition and maintain the brand’s identity while leveraging Allwyn’s resources for further expansion.
Allwyn’s decision to enter the US DFS market through the PrizePicks acquisition is driven by several strategic considerations:
Market Expansion: The US DFS market has witnessed significant growth, with millions of players engaging in fantasy sports. By acquiring PrizePicks, Allwyn positions itself to tap into this lucrative market.
Product Offering: PrizePicks’ unique gameplay model differentiates it from traditional DFS platforms, appealing to a broader audience. This innovation aligns with Allwyn’s focus on product development and customer engagement.
Synergies and Resources: Allwyn’s extensive experience in the lottery sector and its technological capabilities can enhance PrizePicks’ operations, driving efficiency and innovation.
The most recent U N report reveals that Asia’s illegal gambling market has reached a staggering £50 billion, with India’s illegal gambling deposits alone touching nearly $100 billion annually. The underground betting activities continue to outpace legal alternatives across the continent, despite strict regulations.
C hina’s state-run lottery sales generated $99 billion last year, yet illegal betting remains widespread. Indonesian authorities found that 3.7 million citizens bet over $20 billion illegally. Singapore’s law enforcement made headlines when they seized S$3bn (£1.756bn) in 2023 during a massive money-laundering operation tied to gambling activities.
T his piece analyses how the pandemic pushed more users toward unregulated platforms. Strict regulations often push users toward criminal networks, which has turned the underground gambling economy into a multibillion-dollar industry in Southeast Asia. Martin Purbrick, chair of the IFHA Council on AntiIllegal Betting, points out a concerning trend: Asia’s five largest countries report that illegal markets cause more gambling-related harm than their legal
counterparts.
T he United Nations Office on Drugs and Crime (UNODC) has released a detailed report that shows illegal gambling in Asia has grown to staggering levels. Unlicensed betting now drives a £50 billion underground economy, setting a new record for illicit gambling in the region.
T his eye-opening UNODC report reveals how deeply illegal gambling has taken root across Asia. The unregulated betting markets have grown 30% since 2019, with dramatic spikes seen in Southeast Asian countries. The data shows that 68% of all betting in Asia happens through unlicensed channels.
U NODC teams found massive networks of illegal gambling operations that cross multiple borders, which makes stopping them extremely difficult. These underground operations use innovative technology to stay hidden, including encrypted messages, cryptocurrency payments, and proxy servers.
“ The scale of illegal gambling across Asia has reached unprecedented levels,” states the UNODC report. “This represents not only a massive loss in
potential tax revenue but also creates ideal conditions for money laundering and other financial crimes.”
T he report also shows that these illegal operations have created smart marketing campaigns that target vulnerable people through social media and messaging apps. These betting rings offer no safeguards for problem gamblers and push addictive betting habits actively.
Looking at different Asian economies reveals some worrying trends. Thailand’s illegal gambling turnover tops $8 billion each year, and more than 30% of adults place bets. Malaysia’s underground betting has reached $4.5 billion yearly with almost no oversight.
T he Philippines presents unique challenges since it allows licenced online gambling aimed at foreign markets. All the same, local illegal gambling thrives with a $6.5 billion annual turnover despite legal options being available.
V ietnam’s leaders admit illegal gambling has become a major issue, with underground operations handling $3.8 billion yearly. South Korea struggles with illegal operators who process $5.2
billion each year, even though legal gambling exists.
The report’s findings about money movement between these markets raise serious concerns. Criminal groups have built sophisticated networks that move funds across borders to exploit weak regulations. When authorities crack down in one country, these operations simply move to another.
The UNODC report shows this massive illegal betting industry has created a shadow financial system beyond government control. This system fuels gambling addiction and enables money laundering, tax evasion, and funding for other crimes.
“Without coordinated regional action,” the report warns, “the Asia illegal
gambling market will continue to expand, undermining legitimate businesses and harming vulnerable communities across the continent.”
The pandemic hit in early 2020. Asian governments put strict lockdown measures in place that closed casinos, betting shops, and gambling establishments. Legal and illegal online alternatives quickly filled the gap left by closed physical venues.
The Association of Southeast Asian Nations (ASEAN) reported illegal online gambling “exploded during the Covid-19 pandemic”. Hong Kong residents who couldn’t travel to Macau’s casinos turned to illegal gambling dens and online platforms. Japan saw consultation requests about online gambling addiction grow 11
times over five years. The pandemic played a big role in this increase.
Lockdown data showed major changes in gambling behaviour:
*Online gambling grew by 17% in active accounts and 12% in bets placed during peak periods
*Online slots activity jumped 15% to nearly £203 million during FebruaryMarch lockdown periods
*Online slots sessions lasting over an hour grew by 8% to 2.7 million
About 18% of gamblers said they gambled more since the pandemic started. Southeast Asia saw this change clearly, where most online operations targeted mainland China, where gambling remains illegal.
Legal gambling operators struggled with many rules that illegal ones simply ignored. Licenced platforms had to deal with capacity limits, product restrictions, and slow approval processes for new offerings during this difficult time.
Illegal operators faced no such rules. They added betting options faster, offered higher limits, and gave instant withdrawals—all without any oversight. An industry report noted: “Players discovered they could bet on anything, anytime, without questions”.
The pandemic showed how illegal markets adapted quickly while regulated operators dealt with red tape. Criminal operations thrived by offering banned services, even in areas with legal gambling options.
Job losses and financial stress during lockdowns pushed people to use gambling to handle debts. Many turned to unregulated platforms
that offered credit betting without checking if users could afford it.
Illegal operators took advantage through aggressive marketing. Offshore operators in some areas “intensified the advertisement of their online gambling products” and used “the pandemic as a promotional tool”. Social media influencers helped by sending millions of users to unregulated sites.
A YouGov survey found concerning trends even in countries with strong regulations. About 28% of UK gamblers might try unregulated gambling sites if taxes went up on legal platforms. More worrying, 29% weren’t sure they could tell if a site was legal.
The pandemic created what ASEAN officials called “a playground for criminal activities”. Illegal online gambling now ranks among the “growing threat of online scams” that regional governments want to stop.
Strict consumer protection laws are pushing Asia’s gambling market underground. Players now turn to unlicensed platforms because of excessive restrictions. Research shows these protective measures backfire and create opportunities for criminal networks.
Asian governments keep adding strict gambling rules that make legal operators less competitive. Countries with high taxes and betting limits see almost half their players switch to unregulated options. The British Gambling Commission reports only 2.5% of online gambling happens through unlicensed operators. This highlights a growing challenge for regulators worldwide.
require strict identity checks, product limits, and mandatory breaks between betting sessions.
Illegal gambling operations use clever ways to reach children and at-risk groups. Sky News found unlicensed casinos targeting kids on social media. Users could gamble with in-game currency and cash out in cryptocurrency, no matter their age. A 14-year-old gambled around £150,000 worth of in-game currency.
These platforms use psychological tricks that worry experts. Unlicensed sites create interfaces that hook users with rapid-fire betting. Players can place multiple bets within minutes. Research links this format to addiction. Young thrill-seekers and impulsive people find these high-risk environments appealing.
Players simply switch to illegal platforms that give them better deals when legal options become too restrictive. This pattern shows up in Asian markets where regulators
Illegal operators use advanced data analysis to find potential customers based on their online behaviour. Users showing signs of addiction,
Users showing signs of addiction, unemployment, financial struggles, or past gambling problems see more gambling ads. This means vulnerable people get the most exposure to unregulated gambling.
Legal market restrictions combined with sophisticated criminal targeting create perfect conditions for gambling harm across Asian markets.
Illegal gambling operations now overshadow legal betting across Asia’s biggest economies. Underground betting has reached record levels in recent years. These shadow markets pose huge challenges for regulators and law enforcement agencies in the region.
The size of illegal betting in Asia’s most populated countries shows how deeply underground gambling has taken root. India’s illegal offshore betting market reaches £15.88-20 billion yearly, with some estimates going as high as £79.42 billion. Indian
citizens bet more than £79.42 daily on online gambling. These numbers show how easy it is to access these illegal platforms.
China has what might be the world’s biggest illegal gambling market. Chinese citizens bet around £635.33 billion yearly on sports or through Southeast Asian platforms. Legal lottery sales in China reached £78.62 billion last year, but this is tiny compared to its underground betting world.
Indonesia’s illegal gambling scene has grown rapidly. Authorities learned that 3.7 million citizens bet over £15.88 billion through unlicensed channels. This led Jakarta to create a special antigambling task force in 2024.
Addiction rates in unregulated gambling markets are much higher than in places with proper controls. A newer study, published in 2023 by Lancet showed India’s problem gambling rate at 7.4%, almost all
from illegal betting. China’s gambling addiction rates range from 2.5-4%, and this is a big deal as it means that Western averages.
These problems go beyond personal harm. After major corruption scandals in Chinese sports tied to illegal betting, stadium crowds dropped to just 30% of their usual size.
Criminal organisations have made illegal gambling their life-blood business. High profits and low risks make it attractive. These networks work across multiple countries and think over ways to exploit gaps in regulations.
Money laundering through betting platforms raises serious concerns. Illegal operators in India process about £238.25 million monthly through “mules”. Authorities recover only 10% of this money. Criminal groups across Asia use cryptocurrency, mirror websites, and offshore licences to look legitimate.
Martin Purbrick, Chairman of the ARF Council on Anti-Illegal Betting, states that “across Asia’s five biggest countries, the greatest driver of gambling harm is the illegal market”.
Tax policies in regulated markets have created dangerous ripples across Asia’s gambling scene. New evidence shows revenue-focused tax approaches have backfired and made underground operations stronger.
As the UK government prepares for its autumn Budget, Chancellor Rachel Reeves is under increasing pressure from over 100 Labour MPs to consider raising taxes on gambling companies. The move is aimed at funding the removal of the controversial two-child benefit cap, a policy that has been widely criticised for perpetuating child poverty across the nation.
The letter signed by Labour MPs highlights the urgent need to abolish the two-child limit on benefits, which has been a significant factor in keeping many families in poverty. The MPs argue that this cap disproportionately affects the most vulnerable children in society, limiting their access to essential support. They propose that a targeted levy on online gambling products could generate the necessary funds to support this initiative.
The MPs assert that the current effective tax rate on remote gambling in the UK is considerably lower than in many comparable jurisdictions. They point out that betting companies are highly profitable yet employ relatively
few people, often operating from offshore locations to minimise their tax liabilities.
A report from the Institute for Public Policy Research, which has received backing from former Prime Minister Gordon Brown, suggests that reforms to gambling taxation could yield approximately £3.2 billion. This revenue could be instrumental in lifting the two-child benefit cap and addressing child poverty more effectively. The think tank has proposed increasing taxes on online casinos from 21% to 50% and raising taxes on slots and gaming machines from 20% to 50%.
The child poverty taskforce, established by Labour leader Sir Keir Starmer, is expected to recommend the removal of the two-child cap in its forthcoming report. Although the publication of this report has faced delays, lifting the cap is anticipated to be its primary recommendation. The Department for Work and Pensions (DWP) has indicated that the taskforce will unveil an ambitious strategy aimed at tackling the root causes of child poverty.
Despite the mounting pressure, a government source has stated that discussions are ongoing and no final decisions have been made regarding the proposed changes. Chancellor Reeves has acknowledged the need for a review of gambling taxation, stating that she will outline plans in the upcoming Budget on November 26.
Alex Ballinger, a signatory of the letter and member of the All-Party Parliamentary Group on gambling reform, expressed his concerns, stating, “No child should grow up in poverty while gambling companies make record profits.” He highlighted the increasing gambling-related harms and pointed out that gambling is currently exempt from VAT, further complicating the issue.
The two-child benefit cap, introduced by the Conservative government in 2015, restricts child tax credit and universal credit to the first two children in most households.
Political lobbying is a significant aspect of the democratic process in the United Kingdom, serving as a bridge between the public and policymakersand the biggest challenge is a gambling lobbyist group!
Lobbying refers to the act of attempting to influence government decisions, policies, or legislation. It is a practice that has evolved over centuries, with its roots tracing back to the corridors of power where individuals and groups sought to sway lawmakers. In the UK, lobbying is often associated with various stakeholders, including corporations, non-profit organisations, and interest groups.
Lobbying can take several forms, primarily categorised into two types: in-house lobbying and external lobbying through firms.
In-house Lobbying: This involves organisations employing dedicated lobbyists to advocate for their interests directly. Large corporations, for
instance, often have teams of lobbyists who engage with government officials to promote their agendas. This approach allows for a focused and sustained effort in influencing policy.
External Lobbying: Many organisations, particularly smaller ones, may hire external lobbying firms to represent their interests. These firms specialise in navigating the political landscape and have established relationships with key decision-makers. Notable lobbying firms in the UK include Bellenden, Teneo, and Lexington Communications, each representing a diverse range of clients from various sectors.
The Importance of Lobbying Lobbying plays a crucial role in the political landscape of the UK. It serves
several purposes:
Representation of Interests: Lobbying provides a platform for various groups to voice their concerns and interests, ensuring that a wide array of perspectives is considered in the policymaking process.
Expertise and Information: Lobbyists often possess specialised knowledge about specific industries or issues. This expertise can be invaluable to policymakers who may not have the time or resources to conduct in-depth research on every topic.
Facilitating Dialogue: Lobbying fosters communication between the government and the public, allowing for a more informed decision-making
process. It encourages dialogue on critical issues, helping to bridge the gap between policymakers and constituents.However where does leave gambling industry?
With national media and public setiment generally opposed for any leeway how should gambling lobbyists handle this ibstacle?
The scale of lobbying in the UK is substantial, with estimates suggesting that the industry generates around £2 billion annually. Approximately 4,000 individuals are employed in lobbying roles, with a significant proportion coming from large corporations.
Lobbyists often claim to have a considerable impact on policy outcomes. For example, the National Farmers’ Union (NFU) has successfully lobbied for various agricultural policies, including mandatory country of origin food labelling and exemptions for plant nurseries from business rates. These examples illustrate how lobbying can shape legislation and influence government priorities.However it is important to remember even the NFU is struggling to overturn the incoming policy on inheritance tax for farmers.
Strengths and Weaknesses of Lobbying
Strengths:
Expertise: Lobbyists often bring valuable insights and data to the table, aiding policymakers in making informed decisions.
Representation: Lobbying ensures that diverse interests are represented in the political arena, contributing to a more balanced policymaking process.
Transparency Improvements: The introduction of the Lobbying Act has increased awareness of lobbying activities, fostering a degree of accountability.
Disproportionate Influence: Wealthy organisations can dominate the lobbying landscape, overshadowing smaller groups and public interests.
Revolving Door Concerns: The movement of former politicians and civil servants into lobbying roles raises ethical questions about conflicts of interest and the integrity of the political process.
Limited Regulation: The existing regulatory framework has significant gaps, allowing many lobbying activities to remain unmonitored.
Lobbying is an integral part of the UK’s political landscape, providing a means for various stakeholders to influence government decisions.
The challenge for industry bodies that lobby such as the Betting & Gaming Council (BGC) is they have little to no support from public or media, so any political sway would come from within.
With so many large industries spending large amounts on lobbying where does the gambling industry stand with any hope of lobbying?
Making public statements to the media in support of gambling is not going to help the cause, a better stealth strategy is required to help those companies who generally do help the economy, pay taxes and should not be punished for being a successful industry.
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The rejection of a proposed bill to establish integrated entertainment complexes, including casinos, has marked a significant turning point in Thailand’s aspirations for a casino resort industry. This decision, made by the Senate, reflects deep-rooted concerns regarding the potential social, economic, and security implications of such developments.
The controversial bill was introduced by the administration of former Prime Minister Paetongtarn Shinawatra. It aimed to create a framework for integrated entertainment complexes that would feature casinos alongside other attractions. However, the Senate’s special committee, led by Senator Dr Veerapun Suvannamai, conducted a thorough review and ultimately deemed the proposal detrimental to the nation.
The committee’s report highlighted several critical issues:
Social Impact: There were fears that legalising casinos could exacerbate gambling addiction and related social problems.
Economic Disruption: Critics argued that the economic benefits touted by proponents of the bill were overstated, suggesting that revenue would merely shift from one group to another rather than generate new wealth.
National Security: The potential for increased money laundering and other criminal activities associated with gambling establishments raised alarms among lawmakers.
In light of these concerns, the committee recommended that any future
attempts to legalise casinos should involve public input, ideally through a national referendum.
In response to the rejection of the casino bill, Senator Sornchat Vichaya Suwannaprom proposed the formation of a new study group to explore alternative entertainment models. This initiative aims to consider options that could provide economic benefits without the risks associated with casinos.
Entertainment Complexes Without Casinos, Limited-Access Casino Zones: Establishing areas where casinos could operate under strict regulations, potentially limiting access to tourists or registered individuals.
Regulated Online Gambling: Exploring the possibility of legalising online gambling platforms, which could be more easily monitored and controlled.
Senator Vichaya cited international examples, such as Sydney, Australia, where casino access is restricted to
registered tourists, as a potential model for Thailand.
With parliament set to dissolve in four months, the urgency for political parties to clarify their positions on gambling legislation has increased. Dr Veerapun emphasised that any party wishing to pursue casino legalisation must be transparent about its intentions during the campaign period, rather than obscuring it within broader entertainment policies.
The Veerapun committee’s report concluded that the current version of the casino-entertainment complex bill posed significant constitutional, economic, and social risks. It argued that the proposed legislation would yield minimal real economic value, as the revenue generated would largely transfer from losers to winners, rather than creating new wealth. Additionally, the infrastructure costs and burden on the state would be substantial.
The Freedom Plaza project, which was touted as a significant contender in the race for a casino licence, has been rejected. This marks the third consecutive failure for Manhattan’s casino bids, meaning there is now no chance of one of the licenses for a casino being granted in Manhattan.
Freedom Plaza was envisioned as a monumental $11 billion project, strategically located along 1st Avenue, adjacent to the United Nations headquarters. Proposed by the Soloviev Group in partnership with Mohegan Gaming, the ambitious plans included not just a casino but also two hotel towers, two residential towers, and a Museum of Democracy. The scale and scope of the project were unprecedented among the eight proposals submitted for consideration in the downstate region.
The fate of Freedom Plaza was sealed during a meeting of the Community
Advisory Committee (CAC), where it was swiftly voted down with a 2-4 outcome. This decision came after a mere ten minutes of deliberation, highlighting the committee’s lack of support for the proposal. The project required a two-thirds majority to advance, but it fell short by two votes.
This rejection leaves only five of the eight casino proposals in the New York City area still under consideration, with local committees set to vote on these remaining projects by the end of the month.
The rejection of Freedom Plaza is not an isolated incident. It follows a troubling trend for Manhattan’s casino aspirations, with all three proposed projects receiving similar treatment from the CAC. Each proposal was dismissed with a 2-4 vote, and none garnered the endorsement of the committee chairs.
Interestingly, the only supporters for
all three rejected projects were members appointed by Governor Kathy Hochul and New York City Mayor Eric Adams. The mayor’s representatives had previously expressed concerns about the rushed nature of the voting process, yet no such statements were made during the Freedom Plaza vote.
In a bid to sway the committee’s opinion, the Freedom Plaza team submitted several last-minute amendments prior to the vote. Notably, one of the most significant concessions was a commitment to 100% affordable housing on the site, increasing the total unit count to 1,080. This proposal would have marked a substantial concession among downstate applicants, had it been accepted.
However, the CAC has yet to approve any amendments proposed by bidders, with the only committee to request changes being Bally’s Bronx. The response from Bally’s was received just before the vote, but no further action has been taken.
The reaction to the Freedom Plaza rejection was notably subdued compared to the backlash following the Avenir project’s dismissal. While Avenir’s rejection prompted a strong response from SL Green CEO Marc Holliday, Freedom Plaza’s developers appeared to take the news with a sense of resignation. Reports indicated a mix of applause and tears among supporters, but no vocal outbursts from the developers themselves.
Committee chair Sandra McKee expressed gratitude to all participants in the process, stating, “It’s been a very robust review of all the work that’s been done by the community and the applicants. I vote nay.”
The Gambling Commission’s ongoing legal dispute regarding the National Lottery licence according to a report in the Telegraph Newspaper say that the costs incurred by the UK Regulator have doubled, reaching a staggering £28.8 million for the fiscal year ending in March. This sharp increase from £14.4 million in the previous year underscores the financial strain that legal challenges can impose on regulatory bodies.
At the heart of the battle initiated by Richard Desmond, a prominent publishing magnate. Desmond is contesting the Gambling Commission’s decision not to award him the fourth National Lottery licence, a lucrative contract that was instead granted to Allwyn, a competitor owned by Czech billionaire Karel Komárek. Desmond’s lawsuit alleges that the bidding process was marred by unfair practices, and he is seeking a staggering £1.3 billion in damages.
The ramifications of this legal dispute extend beyond the courtroom. The
costs associated with the Gambling Commission’s regulatory activities are primarily funded through the National Lottery Distribution Fund (NLDF), which is intended to support charitable causes. As such, the diversion of funds to cover legal expenses raises concerns about the potential impact on good causes that rely on lottery funding. The NLDF’s accounts have even noted a contingent liability to cover potential damages should Desmond’s claims succeed.
The Gambling Commission’s financial statements reveal that a significant portion of the increased costs can be attributed to legal fees. In the past year, the regulator incurred £13.4 million in litigation expenses, a dramatic rise from just £400,000 the previous year.
The Gambling Commission is tasked with overseeing not only the National Lottery but also the broader gambling industry in the UK. Its operations are funded through fees paid by gambling operators, which adds another layer of complexity to its financial
structure. The regulator has expressed confidence in its handling of the National Lottery bidding process, asserting that it conducted a fair and lawful evaluation in accordance with its statutory duties.
Since taking over the National Lottery licence, Allwyn has faced scrutiny regarding its operational capabilities. The company has made ambitious pledges to increase charitable donations to £38 billion over the next decade. However, the implementation of a crucial IT upgrade, deemed essential for achieving these goals, has encountered significant delays and difficulties. The Gambling Commission has initiated enforcement actions against Allwyn, further complicating the regulatory landscape.
As the legal battle unfolds, the future of the National Lottery remains uncertain. Should Desmond’s claims be upheld, the financial implications could be profound, potentially affecting the funding available for charitable initiatives
The Japanese government has taken a firm stance against cross-border gambling, urging several jurisdictions, including the Isle of Man, to restrict access to online gambling platforms for its citizens. This move comes as part of Japan’s broader efforts to combat illegal gambling activities and enforce stricter regulations on its citizens’ gambling habits.
Japan has long maintained a complex relationship with gambling. While certain forms of gambling, such as lotteries and horse racing, are legal, online gambling remains a grey area. The government has recently intensified its focus on curbing illegal gambling.
In a bid to strengthen its regulatory framework, Japan has introduced new laws aimed at limiting cross-border gambling. These laws are designed to protect citizens from potential financial harm and to ensure that gambling activities are conducted
within a controlled environment. The government believes that without cooperation from foreign jurisdictions, its efforts to combat illegal gambling will be ineffective.
The Isle of Man has established itself as a prominent hub for online gambling, attracting numerous eGaming firms due to its favourable regulatory environment and tax incentives. This has made it an appealing destination for operators looking to reach international markets, including Japan.
The Japanese authorities have formally asked the Isle of Man, along with several other jurisdictions, to implement measures that would prevent Japanese citizens from accessing online gambling sites.
If the Isle of Man complies with Japan’s request, it could have significant implications for eGaming firms operating in the region. Many companies rely on Japanese players as a sub -
stantial part of their customer base, and restricting access could lead to a decline in revenue. Firms may need to reassess their marketing strategies and target demographics to mitigate potential losses.
Compliance with Japan’s request may require significant changes to gambling operations, including implementing geo-blocking technologies to prevent access from Japanese IP addresses.
Japan’s request to the Isle of Man is part of a larger trend in which countries are increasingly scrutinising online gambling activities. Many nations are recognising the need for stricter regulations to protect their citizens and to combat illegal gambling operations.
