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UK Government Activates Illegal Gambling Taskforce as Black Market Stakes Hit £16.6bn

DCMS confirmed the taskforce remit and membership on 13 May, the same week the Gambling Commission opened its first Head of Illegal Markets role to target offshore operators.

Category: iGaming News - UK · By Growl Games Editorial Team · Mon May 18 2026 · Updated Thu Jul 23 2026

UK Government Activates Illegal Gambling Taskforce as Black Market Stakes Hit £16.6bn

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Summary

The UK Department for Culture, Media and Sport (DCMS) published the terms of reference for its new Illegal Gambling Taskforce on 13 May 2026, ending months of uncertainty over how the unit will operate. The taskforce will run for 12 months under the chairmanship of Baroness Fiona Twycross, the Minister for Museums, Heritage and Gambling, with DCMS Director of Sport and Gambling Ben Dean as co-chair. Its launch coincides with research showing UK black market stakes have more than tripled since 2019, and with the Gambling Commission's decision to recruit a dedicated Head of Illegal Markets.

Inside the Illegal Gambling Taskforce

According to the DCMS terms of reference, the taskforce will focus on three priorities: preventing payments to and from illegal operators, disrupting black market online advertising, and improving cross-agency enforcement across both online and land-based illegal gambling. A dedicated subgroup will work on each area and is recommended to meet at least quarterly, while the main taskforce will convene twice a year under Chatham House rules.

Membership combines licensed gambling operators, tech platforms, payment providers, the Gambling Commission, other regulators and trade bodies, although individual names will not be made public. The unit sits within the government's £26 million budget for tackling black market activity and is explicitly framed as complementary to, rather than a replacement for, the Gambling Commission's enforcement functions.

A £16.6bn Black Market Problem

Research published by H2 Gambling Capital and cited by the Betting and Gaming Council found that stakes with unlicensed operators reached £16.6bn in 2025, more than triple the 2019 figure and roughly double the level recorded just two years earlier. The share of UK gambling taking place on regulated platforms has slipped from 97 per cent in 2019 to 92 per cent in 2025.

The taskforce launch comes weeks after the Remote Gaming Duty increased to 40 per cent in April 2026, a change critics warn could accelerate migration to unlicensed sites. Industry analysts have linked the black market's expansion to a combination of tighter regulation, higher duties on licensed operators and the growing visibility of offshore brands in search and social channels.

UKGC's New Head of Illegal Markets

In parallel with the DCMS announcement, the Gambling Commission opened applications for a newly created Head of Illegal Markets role, salaried at £65,000. Applications close on 24 May, with interviews scheduled between 5 and 9 June. The successful candidate will lead enforcement and intelligence work, oversee investigations into unlicensed operators, and coordinate with tech platforms, payment firms and other regulators.

Acting chief executive Sarah Gardner, speaking at the Bingo Association AGM on 7 May, also confirmed that the regulator welcomes the £26 million in additional government funding, which she said allows it to address land-based illegal gambling at scale for the first time.

What It Means for Licensed Operators

For licensed online operators, the taskforce represents the most concrete government response yet to a problem the regulated industry has flagged for years. Entain has separately written to the Premier League and the Independent Football Regulator calling for an immediate ban on sponsorship and advertising deals with unlicensed operators ahead of the 2026/27 season, citing analysis that projects unlicensed sponsorship spend will exceed half of all UK sports sponsorship by October 2027 if left unchecked.

How quickly the taskforce delivers measurable results will be closely watched. With biannual meetings as the main cadence and a 12-month initial remit, some industry commentators have already questioned whether the schedule matches the pace at which offshore operators evolve. The first review point arrives in May 2027, when the government will decide whether to renew, expand or wind down the unit.

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