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9 Jun 2026

BGC Flags Growing Risks of Illegal Betting During Epsom Derby Festival

Epsom Downs racecourse during the Derby Festival with crowds and betting activity visible The Betting & Gaming Council has issued a direct warning that unregulated operators stand ready to capture substantial stakes during the Betfred Derby Festival at Epsom this coming weekend, with projections reaching as high as £10 million across the two days and up to £5 million focused solely on the Derby itself. The organization points to recent tax hikes on licensed operators together with proposed financial risk checks as factors that could accelerate movement toward sites lacking any consumer safeguards, and it notes an already expanding footprint for the black market in recent periods. Observers tracking the sector note that the Derby Festival draws intense betting interest each June, creating a concentrated window where illegal platforms can operate with minimal visibility. Data compiled by the BGC indicates that higher duty burdens on compliant firms reduce their ability to compete on odds and promotions, while the same customers face new friction when attempting to place larger wagers through regulated channels.

Projected Stakes and Market Shift

Figures released alongside the statement show the potential illegal volume climbing to £10 million over the meeting, with the headline race alone accounting for half that amount. The council links this expected surge to a combination of elevated remote gaming duty and the introduction of affordability assessments that licensed operators must apply before accepting certain bets.

Those assessments require verification of a customer's financial situation, a step that some bettors reportedly bypass by moving to offshore or completely unregulated platforms. The BGC states that such platforms offer no deposit limits, no self-exclusion tools, and no contribution to harm-prevention funds, leaving participants without the protections built into the licensed market.

Regulatory Pressures Cited

Tax increases implemented in the current fiscal year have raised the cost base for legal operators, narrowing margins on high-profile events such as the Derby. At the same time, the proposed risk-check framework would require additional customer data before large stakes are accepted, a process the BGC argues can be circumvented instantly on black-market sites.

Illustration of online betting interfaces showing both licensed and unregulated gambling platforms

Independent monitoring referenced in the statement suggests the black market has already expanded its reach through targeted advertising and faster payout claims, drawing customers who previously stayed within the regulated system. The council highlights that this shift occurs without any corresponding increase in enforcement resources aimed at offshore operators.

Consumer Protection Gap

Licensed operators must maintain age-verification systems, fund research into gambling harms, and participate in GamStop, none of which apply to illegal sites. The BGC notes that any growth in black-market activity during the Epsom meeting therefore removes those layers of oversight for the estimated £10 million in wagers.

The organization points out that recent growth in unregulated activity has been documented across multiple high-profile racing weekends, with the Derby representing one of the largest single-event opportunities. Data shared by the council shows year-on-year increases in traffic to known illegal domains coinciding with major fixtures.

Industry Response

Member firms of the BGC have increased public messaging around the availability of licensed alternatives during the festival period, including promotions that remain compliant with current tax rules. The council itself has called for enforcement agencies to prioritize action against platforms that target UK customers without holding the required licences.

According to the BGC statement, continued expansion of the black market risks undermining both consumer safety adn the tax revenue generated by the regulated sector. The group presents the upcoming Epsom meeting as a clear illustration of how regulatory and fiscal changes can produce unintended migration to unregulated channels.

Conclusion

The Betting & Gaming Council’s assessment ties the expected £10 million in illegal stakes directly to the combination of higher operator costs and forthcoming customer checks, while underscoring the absence of protections on unregulated sites. The statement positions the Betfred Derby Festival as a focal point for monitoring how these dynamics unfold over the two days of racing.