UK Offshore Gambling Market Reaches Stakes of £16.6bn in 2025

Research by H2 Gambling Capital (H2) reveals that the amount staked with illegal gambling operators in the UK has surged to £16.6bn — more than tripling since 2019 and doubling in just the past two years.

H2's research has been cited by the Betting and Gaming Council (BGC) in its calls for policymakers to carefully balance harm reduction measures against the risk of accelerating black market growth — particularly in the context of proposed financial risk assessments, which the BGC argues must be genuinely frictionless or risk driving customers away from safe, regulated platforms.

H2's analysis tracks the rapid growth of the offshore black market, which has expanded from approximately £5bn in 2019 to £16.6bn in 2025. The acceleration has been particularly sharp in recent years, with both stakes and operator profits doubling between 2023 and 2025.

The research also shows a declining share of gambling activity taking place on regulated platforms. The proportion of legal betting has fallen from 97% in 2019 to 92% in 2025, reflecting a meaningful shift of consumer activity towards unregulated operators.

H2's findings point to a combination of drivers behind this trend, including increased regulatory pressure, higher taxation on licensed operators, and the growing online visibility of illegal gambling sites.

The data forms part of a broader body of evidence highlighting the unintended consequences of regulatory and fiscal tightening on the licensed sector. When the regulated market becomes less competitive or more restrictive to use, consumers do not stop gambling — they migrate to illegal alternatives that operate outside UK rules, pay no tax, and offer none of the consumer protections required of licensed operators.

About H2 Gambling Capital H2 Gambling Capital is the most trusted provider of global gambling market data and intelligence. H2's proprietary research is the most widely cited source in company reports, regulatory filings, and transaction documentation across the gambling industry.