BGC warns of £60 million in illegal Cheltenham Festival bets

Cheltenham is widely regarded as the biggest event in the horse racing calendar. But the Betting and Gaming Council (BGC) has warned that up to £60 million may have been staked with illegal operators during the event, which took place between 10th and 13th March this year.

The racing event is estimated to attract around £1 billion in total wagers. However, the BGC said a growing proportion of this happens outside the regulated market.

This is based on recent estimates that around 6% of all wagers in Great Britain are placed with illegal operators. As such, the trade body believes approximately £2 million per race could have been bet through unlicensed platforms.

Player protection risks highlighted

BGC CEO Grainne Hurst warned that bettors using illegal operators are exposed to significantly higher risks due to the lack of safeguards.

“Cheltenham is the biggest week of the year for racing fans and millions placed bets safely with regulated operators, but the criminal harmful black market also tried to cash in, targeting punters with illegal betting that offers none of the protections provided in the regulated sector.” – Grainne Hurst

Unlike licensed UK operators, illegal sites do not provide consumer protections. Tools like deposit limits, self-exclusion tools or guaranteed payouts aren’t available.

Regulation and tax changes under scrutiny

The BGC also pointed to tightening regulation as a potential driver behind the growth of the black market.

Concerns raised by industry stakeholders talk of the measures introduced following the 2023 Gambling Act white paper. In particular, affordability checks because they require some customers to submit financial information before placing bets.

The Jockey Club previously warned these checks could cost the racing industry up to £250 million over five years due to potential bettors using unregulated alternatives instead.

Further pressure is expected from upcoming tax changes. The UK government has approved an increase in remote gaming duty from 21% to 40%, set to take effect in April. Remote sports betting duty is also scheduled to rise from 15% to 25% in 2027.

Hurst said these changes risk undermining the competitiveness of licensed operators.

“Rising taxes and increasingly intrusive checks will only make it harder for legitimate operators to compete,” she said.

Stronger enforcement is needed

The BGC is now urging greater action to tackle illegal operators. This is in order to protect both consumers and the racing industry. It called on regulators, enforcement agencies and policymakers to prioritise keeping bettors within the regulated market. This is where protections are in place.

According to the trade body, failure to address the issue could expose players to harm whilst also reducing funding streams that support British racing.