TLDR
- The BGC estimates £60 million was wagered illegally during the four-day Cheltenham Festival, roughly £2 million per race
- Cheltenham attracted close to £1 billion in total betting stakes, part of Britain’s £11 billion annual horse racing turnover
- Around 6% of all betting in Britain now flows through illegal operators outside the regulated market
- Remote gaming duty rises from 21% to 40% in April, with sports betting duty climbing from 15% to 25% in 2027
- The Jockey Club has warned affordability checks could drain £250 million from horse racing over five years
The Betting and Gaming Council has said that an estimated £60 million was staked illegally during this year’s Cheltenham Festival. The four-day horse racing event is one of the biggest betting weeks in Britain.
That figure breaks down to about £2 million per race across the meeting. The BGC issued the warning as the Festival drew close to £1 billion in total betting stakes.
Cheltenham is part of Britain’s wider horse racing economy, which generates roughly £11 billion in annual turnover. The Festival alone accounts for a large chunk of that activity each year.
According to analysis cited by the BGC, around 6% of all betting in Britain now goes through illegal operators. When applied to Cheltenham’s massive turnover, that percentage adds up to tens of millions outside the regulated market.
The regulated online betting market handles about £8 billion in wagers each year. The BGC says the gap between legal and illegal activity is widening.
Tax Hikes Put Pressure on Licensed Operators
Grainne Hurst, Chief Executive of the BGC, said the criminal black market tried to cash in during the Festival. She said illegal betting offers none of the protections that come with licensed operators.
Hurst pointed to rising taxes as a key factor pushing bettors toward unlicensed channels. From April, the remote gaming duty will jump from 21% to 40%.
Remote sports betting duty is also set to rise. It will climb from 15% to 25% in 2027, adding further cost pressure on legal firms.
Hurst argued that higher taxes and intrusive checks make it harder for licensed operators to compete. She said this leaves more room for illegal operators to grow.
The government’s 2023 white paper introduced affordability checks for gamblers. These require bettors to share personal financial information before placing larger wagers.
Affordability Checks Draw Criticism From Racing Industry
The Jockey Club has warned that these checks could drain £250 million from horse racing over five years. Many bettors are reluctant to hand over bank statements and other financial details.
Critics say this reluctance is pushing people toward the black market, where no such checks exist. Illegal operators do not ask for documentation or enforce spending limits.
The BGC has called on both the industry and the government to take stronger action against criminal gangs running unlicensed betting operations. The council says protecting players and safeguarding racing’s future should be the priority.
Hurst said the focus should be on keeping bettors in the regulated market. She stressed that protections are only available through licensed firms.
The tax increases take effect starting in April, with the remote gaming duty nearly doubling. The sports betting duty increase follows in 2027.
