Black market bookmakers are projected to dominate UK advertising spend by 2028, according to research by the World Advertising Research Center, with regulators and lawmakers facing criticism over policies that are accelerating the shift. This will certainly set the panic button at the Gambling Commission – perhaps now it regrets denying the extent of the black market less than one year ago.
Unlicensed bookmakers are on course to overtake regulated gambling firms in UK advertising spend within the next few years, according to new independent analysis.
Research by the World Advertising Research Center suggests black market operators could spend more than £1bn promoting their services in the UK by 2028, surpassing the combined total of licensed companies.
By October this year alone, unregulated firms are expected to increase their advertising spend by 32 percent to £845m. In contrast, licensed operators are forecast to cut their spending by more than nine percent to £1.1bn this year. By 2028, regulated firms are expected to account for less than half of all gambling advertising expenditure.
“While ad spend within the UK’s gambling sector is set to rise to £1.9bn this year, WARC research has found that there is a two-speed market at play, with almost all growth now being driven by unlicensed firms,” said a spokesperson for WARC. “These operators are predominately based overseas and are paying ever-increasing amounts to reach UK consumers online via search and social media. Sponsorship too is heavily leveraged by unregulated firms who are, collectively, set to account for over more than half of sponsorship ad spend in the gambling sector next year.
“Most significantly, unlicensed operators are on course to account for more than half of all ad spend within the gambling sector by 2028; a sign of the tectonic shift currently occurring within the market.”
The findings come ahead of a parliamentary debate on gambling advertising, with industry leaders urging ministers to prioritise enforcement against illegal operators.
“This should ring alarm bells in Westminster,” commented Grainne Hurst, CEO of the Betting and Gaming Council, adding that it raises the question of whether advertising is coming from regulated operators, who are held to strict standards, or from those operating entirely outside the rules.
“Targeting licensed operators when their advertising spend is already falling will not reduce overall advertising, it will simply bolster the harmful illegal black market, which is aggressively targeting UK customers,” she continued. “The government must go further and faster to clamp down on the black market before it is too late.”
You got the wrong target
Grainne Hurst said……. “This should ring alarm bells in Westminster. Targeting licensed operators when their advertising spend is already falling will not reduce overall advertising, it will simply bolster the harmful illegal black market, which is aggressively targeting UK customers……
