UKGC Delays FRA Decision Amid Growing Black Market Concerns

A well-timed article from the Betting and Gaming Council highlighted the growing scale of the Black Market on Thursday. This came just ahead of the UK Gambling Commission meeting which set out to reach a decision on FRAs.

Following the board meeting, the UKGC is yet to reach a final decision. While they explored an extensive evidence base, their assessment isn’t yet complete.

The delay comes amid increasing political and industry pressure surrounding the proposed checks. There are particular concerns that intrusive checks could unintentionally drive more bettors toward offshore gambling operators.

Black Market Spend to Grow to £33bn

The BGC cited new forecasts from H2 Gambling Capital that suggest black market gambling stakes in the UK could rise from £17bn in 2025 to more than £33bn by 2028. That equates to around 1 in 5 bets reaching the black market.

The BGC has repeatedly argued that higher taxes, additional friction and intrusive checks risk accelerating migration toward unregulated sites. These sites bypass UK licensing rules and tax obligations, taking money out of our economy. But also, they bypass safer gambling protections such as GamStop, leaving the consumer in danger.

BGC CEO Grainne Hurst said about FRAs, “Punters care about outcomes, not process… These checks must be frictionless, genuinely targeted and based on evidence.’

The delay to the UKGC’s FRA decision highlights the difficult balancing act they’re facing. They have a duty to keep consumers safe, but they need to manage the potential costs of pushing those customers offshore.

Why Financial Risk Assessments Remain Controversial

Financial risk assessments were first proposed as part of the Gambling Act White Paper published in April 2023. The measures are intended to identify signs of financial vulnerability among customers while remaining frictionless for the vast majority of bettors.

Under the pilot programme, assessments were triggered when users recorded net deposits of more than £1,000 within 24 hours or £2,000 over a rolling 90-day period. Earlier stages of the trial used a higher £5,000 monthly threshold for frictionless checks.

The Gambling Commission has consistently argued the measures are designed to reduce gambling-related harm without unnecessarily disrupting the customer experience. However, the proposals have become one of the most divisive aspects of the White Paper reforms.

Some bettors and industry groups have claimed customers depositing significantly lower amounts were still asked to provide financial information during the trial period. This raised concerns over how targeted the checks would ultimately be in practice.

Just last week, a cross-party group of MPs representing racecourse constituencies wrote to Culture Secretary Lisa Nandy. They warned the checks could cost British horseracing £250m over five years if implemented poorly. The BGC addressed the UKGC too, stating the regulator could face legal action if it does not review the evidence properly.