UK launches illegal gambling taskforce to curb black market

The UK government launched an Illegal Gambling Taskforce on May 13 to block payments to unlicensed operators and remove their online advertising. The group brings together licensed operators, technology platforms, payment firms, regulators and government departments to develop practical responses to the black market.

The taskforce has three objectives: preventing or reducing payments to and from illegal gambling operators, tackling online advertising for unlicensed sites, and improving cross-agency enforcement of land-based and remote illegal gambling. It will create three subgroups, one for each issue, which will report regularly to the main taskforce and may invite outside experts on specific topics.

The Minister of Museums, Heritage and Gambling will chair the taskforce, with the Department for Culture, Media and Sport’s director of sport and gambling as co-chair. Membership includes representatives from the gambling industry, technology platforms, payment providers, the UK Gambling Commission and other regulators and trade bodies. The government will not publish participants’ names and meetings will be held under the Chatham House Rule to allow off-the-record discussion.

A central focus is the financial infrastructure used by illegal operators. Taskforce documents list stopping or reducing payments to unlicensed sites as a primary aim, citing concerns that payment rails and processors enable the black market. The Remote Gaming Duty rose to 40% in April 2026; industry participants have warned that higher taxes could push some customers to unregulated sites.

A May 2026 study by H2 Gambling Capital found annual stakes placed with unlicensed operators reached £16.6 billion in 2025, more than triple levels in 2019. Analysis referenced by the Campaign for Fairer Gambling estimated illegal operators control roughly 9% of Britain’s online gambling market.

The taskforce’s terms of reference stress non-legislative solutions. Members must support and deliver voluntary actions on advertising and payment services within their organizations and through industry coordination rather than await new laws. The body will develop recommendations but will not direct the UK Gambling Commission’s operational decisions.

The taskforce will run for 12 months. The main body will meet twice a year and the subgroups are expected to meet at least quarterly. Officials noted the limited mandate and timetable are intended to allow the group to adjust if illegal operators change tactics.

The confidential membership and Chatham House arrangements are intended to encourage candid discussion about commercial vulnerabilities and enforcement gaps. Some stakeholders have raised concerns about the lack of public visibility for a group addressing a multibillion-pound sector.

Government documents state illegal operators operate outside consumer protections, skip age checks, avoid responsible gambling measures, pay no UK taxes and do not contribute to industry-funded safety programs. Industry and regulators will watch whether the taskforce’s subgroups can turn recommendations into binding or enforceable commitments that reduce the online black market within the year.