Black Market Alarm in Horse Racing: Illegal Betting Sites Grow Sevenfold

The alarm bells in British horse racing are ringing louder than ever. While regulatory bodies attempt to make the legal market safer through stricter controls, a new analysis by the International Federation of Horseracing Authorities (IFHA) suggests the opposite might be happening. Players are turning their backs on licensed operators in massive numbers, seeking refuge with illegal bookmakers who pay no taxes and offer no basic consumer protections. The numbers are more than just a warning; they describe a full-blown crisis for the sport and public finances.

The speed of this development is particularly concerning. Just a few years ago, the black market's share was negligible. However, the current study of 301 websites, 227 of which are unlicensed, paints a grim picture. One in five visits now goes to an illegal offering. This represents a dramatic shift compared to late 2021, when the ratio was just one illegal visit for every 100 legal visits. The industry faces the challenge of maintaining the channeling effect without driving customers into the arms of criminals.

Numbers and facts

Raw data from the report highlights the scale of the problem. Traffic to illegal platforms surged fourteen-fold between 2022 and 2025, rising from 1.8 million to over 25 million visits. During the same period, licensed sites saw a 34% drop in visits. Specifically regarding British horse racing, traffic intensity for 32 identified illegal sites climbed to 6.8 visits per 100 legal visits in 2026. This is nearly seven times the rate of 0.97 recorded in late 2021. Meanwhile, countries like Australia have already reacted, blocking over 1,154 illegal gambling and affiliate sites since November 2019 to protect their market.

Background

The conflict centers primarily on the question of proportionality. The British Horseracing Authority (BHA) emphasizes that it warned early on about the unintended consequences of the Gambling Act Review. Strict affordability checks and other restrictive measures could push customers to leave the protected environment. Brant Dunshea, head of the BHA, also criticized the lack of progress from the Illegal Gambling Taskforce, which was established in January 2026. He sees the integrity of horse racing at risk since illegal operators contribute nothing to race funding or public budgets.

"This research provides worrying evidence that those concerns are now being realised, with an increasing number of consumers seemingly conducting their betting with illegal operators. Every racing customer who moves from a licensed operator to an illegal one faces greater risks and fewer consumer protections." - Brant Dunshea, Chief Executive of the BHA

Why it matters for German players

For German players, this development serves as a significant warning. In Germany, the State Treaty on Gambling 2021 (GlüStV 2021) regulates the market extremely strictly. With the cross-operator deposit limit of 1,000 euros per month and the 1 euro stake limit per spin for slots, the Joint Gambling Authority of the States (GGL) sets high bars for player protection. However, anyone attempting to bypass these limits on sites without a German license puts themselves in danger. Illegal operators, often advertising with licenses from Curacao or the MGA but not on the official GGL whitelist, offer no legal certainty. In case of withdrawal issues or lack of player protection, German customers have almost no recourse. Connection to the LUGAS system for monitoring limits and the OASIS exclusion system are essential in Germany to ensure a safe environment. The British figures show that overly rigid rules can fuel the black market, ultimately undermining player protection.

What it means for GGL-licensed casinos

Licensed operators in Germany must balance strict regulation with attractiveness. If legal offerings become unattractive due to excessive restrictions, a migration similar to that in the UK threatens to occur. Casinos on the GGL whitelist must communicate the added value of security and reliability to their customers. The development abroad serves as a signal for German politics: regulation must be designed to keep players within the legal market rather than pushing them into uncontrolled channels through over-regulation. Strong enforcement against black market operators is just as important as an attractive legal product.