Illegal bookies are expected to pay up to £30,000 for special boxes at this year’s Cheltenham Festival. [Image: Shutterstock.com]
Pampering money
Illegal bookmakers are expected to pay up to £30,000 ($38,372) for private boxes at this year’s Cheltenham Horseracing Festival in the hope of generating lucrative business. However, this type of black market betting contributes nothing to the horse racing industry, according to a report in the magazine mail online.
More than £400 million a year is placed on horse racing by licensed bookmakers
As the report notes, more than £400 million ($511 million) is placed annually on horse racing by licensed bookmakers through sponsorship, media rights and betting tax. In addition, licensed bookmakers pay £4.5 billion ($5.76 billion) in taxes and employ more than 120,000 people. However, any profit made through black market operators is taken from abroad.
On average, 65,000 people attend each day of the four-day Cheltenham Festival.
Affordability checks
Many have already raised concerns about the black market and horse racing industry. And with the UK government set to impose affordability controls on punters, things are unlikely to improve.
Affordability checks will be made on players if their net losses amount to £125 ($156) per month or £500 ($622) per year. More detailed affordability checks will be carried out at loss limits of £1,000 ($1,245) within 24 hours or £2,000 ($2,490) within 90 days. These amounts will be cut in half for those under 25 years old.
In September, the British Horseracing Authority (BHA) said the black market could have “significant financial implications” for the horse racing industry. However, despite this, Andrew Rhodes, chief executive of the Gambling Commission, said the size of the UK black industry was “very small, but estimates vary”.
But as the government prepares to introduce new gambling measures aimed at protecting gamblers, reports suggest that more people could turn to the black market. Data from the Horse Racing Bettors Forum highlighted that 73% of 296 participants would consider using the black market if they were required to hand over more private information to bookmakers to continue betting.
Threat to industry
as mail online It points out that revenue generated by licensed bookmakers is important to the survival of horse racing.
It found 231 illegal online operators and over 1,000 brokers targeting UK clients
The majority of illegal gambling has occurred in Asia or the United States, but there is a growing problem in the United Kingdom. Online intelligence firm Yield Sec has found 231 illegal online operators and more than 1,000 brokers targeting UK customers. It also discovered that illegal betting generated £270 million ($345 million) in the UK in 2023, making up four percent of the total market.
Black market operators target English speakers because horse racing is “a product that is easy to introduce illegally,” said Ismail Vali, chief executive of Yield Sec.
“The races are very clear, the data is freely available, and almost all races are broadcast on television,” he added. “You can conduct an illegal operation online from your bedroom using WhatsApp, and many people do that.”
