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 revealed that approximately £60 million in illicit wagers were placed during this year’s Cheltenham Festival. This premier four-day racing spectacle represents one of the most significant betting occasions in the United Kingdom.
This substantial sum translates to roughly £2 million in unauthorized bets per individual race throughout the entire meeting. The BGC released these figures as the Festival generated nearly £1 billion in overall betting turnover.
As a cornerstone of Britain’s racing sector, Cheltenham contributes to an industry that produces approximately £11 billion in yearly turnover. The Festival consistently represents a significant portion of this annual activity.
Based on research referenced by the BGC, approximately 6% of Britain’s total betting volume now passes through unlicensed operators. Applied to Cheltenham’s enormous betting activity, this proportion represents tens of millions in unregulated transactions.
The licensed digital betting sector processes approximately £8 billion in annual stakes. The BGC warns that the divide between legitimate and illegitimate betting continues to expand.
Tax Hikes Put Pressure on Licensed Operators
Grainne Hurst, Chief Executive of the BGC, stated that organized criminal networks attempted to exploit the Festival period. She emphasized that unlicensed betting provides no consumer safeguards available through regulated operators.
Hurst identified escalating taxation as a primary driver pushing bettors toward unlicensed platforms. Beginning in April, remote gaming duty will surge from 21% to 40%.
Remote sports betting duty faces increases as well. This levy will escalate from 15% to 25% in 2027, intensifying financial pressure on legitimate businesses.
Hurst contended that elevated taxes combined with invasive verification requirements undermine licensed operators’ competitive position. She suggested this creates additional opportunities for illegal operators to expand their market share.
The government’s 2023 white paper established affordability verification requirements for gamblers. These measures mandate bettors provide personal financial data before making substantial wagers.
Affordability Checks Draw Criticism From Racing Industry
The Jockey Club has cautioned that these verification measures could extract £250 million from horse racing revenues over a five-year period. Numerous bettors resist providing bank statements and additional financial documentation.
Critics contend this resistance drives customers toward unlicensed markets, where such requirements don’t exist. Illegal operators neither request documentation nor implement stake limitations.
The BGC has urged both industry stakeholders and government officials to intensify enforcement against criminal organizations operating unlicensed betting platforms. The council maintains that player protection and racing’s sustainability must remain paramount.
Hurst emphasized that efforts should concentrate on retaining bettors within the regulated framework. She reinforced that consumer protections exist exclusively through licensed companies.
The tax adjustments commence in April, with remote gaming duty approaching double its current rate. The sports betting duty elevation follows in 2027.
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