A recent study reveals a significant shift in the UK gambling advertising landscape. By 2028, unlicensed operators are projected to surpass regulated firms in advertising spend. This trend is alarming for the industry, as licensed operators are decreasing their budgets while unregulated firms are increasing theirs. With calls for government action, the future of gambling advertising remains uncertain.
Recent research indicates that unlicensed gambling companies are poised to surpass their regulated counterparts in advertising expenditure by 2028. According to marketing intelligence agency WARC, this shift marks a significant transformation in the UK gambling market.
The report highlights that while the overall gambling advertising spend is projected to grow for the sixth consecutive year, nearly all of this increase is attributed to unlicensed operators. Specifically, licensed firms are expected to reduce their advertising budgets by 9.2% to £1.05 billion for the period of 2025-26, while unlicensed operators are set to see their spending soar by 32% to £844.7 million.
In the subsequent year, 2026-27, WARC forecasts that the unlicensed market will further increase its spend by 10.6% to reach £934.2 million, contrasted with a 2.6% decline in spending by licensed operators, bringing their total to £1.022 billion.
The report sheds light on the growing trend of overseas operators investing heavily in digital marketing strategies to connect with UK consumers, particularly through search engines and social media platforms. Sponsorship deals are also increasingly favoring unregulated entities.
WARC predicts that by 2026-27, more than half of all sponsorship advertising spend in the gambling sector will come from illegal operators, further complicating the landscape.
Grainne Hurst, CEO of the Betting and Gaming Council (BGC), has expressed serious concerns regarding these findings. She emphasized that the government must act swiftly to address the burgeoning black market before it escalates beyond control. Hurst stated, "The pressing question is whether the advertising we see is from regulated operators, who adhere to strict guidelines, or from the harmful illegal black market that disregards all regulations."
She added that targeting licensed operators, especially when their advertising budgets are already shrinking, will not curb overall advertising. Instead, it will only strengthen the illegal market, which aggressively seeks to attract UK customers.
Earlier this year, the Department for Culture, Media and Sport unveiled plans aimed at prohibiting unlicensed gambling operators from sponsoring Premier League teams, signaling a proactive move towards combating the illegal market. This consultation followed research commissioned by the BGC, revealing a 0.3% decrease in advertising spend by licensed firms in 2024.
WARC summarized the situation effectively, noting, "Most significantly, unlicensed operators are on course to account for over half of all advertising spend within the gambling sector by 2028; a sign of the tectonic shift currently occurring within the market."
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