The Betting and Gaming Council says as much as £60 million may have been wagered with illegal operators during last week’s Cheltenham Festival, extending the UK industry’s argument that major racing events are becoming a bigger target for the black market. The estimate applies a 6% illegal-market share to a festival that is widely seen as attracting around £1 billion in total betting stakes.
That matters because Cheltenham remains one of the most commercially important weeks in British racing. Any meaningful drift toward unlicensed operators hits more than average bookmaker turnover. It also raises concerns about consumer protections, tax receipts, and the wider funding base that supports the sport through regulated betting activity.
The BGC’s issues a warning for Cheltenham Festival
The BGC said the implied total works out to roughly £2 million per race across the four-day meeting, which ran from March 10 to March 13. The trade body framed the figure as a sign that illegal operators are targeting high-volume sporting events where betting demand peaks and customers are easier to attract.
The warning is built on a broader market claim rather than on observed festival-only transactions. The BGC’s position is that about 6% of all betting stakes in Britain now flow to the illegal market, and Cheltenham is large enough for that share to translate into a significant volume over a single week.
The warning arrives just before a sharp jump in UK remote gambling taxes takes effect
The timing is politically important. From April 1, 2026, the UK’s Remote Gaming Duty will rise from 21% to 40%, and from April 2027 a new 25% remote betting rate will apply under General Betting Duty, with remote bets on UK horseracing excluded from that higher rate and left at 15%.
The BGC has linked those tax changes, along with tighter customer checks, to a greater risk of channeling away from licensed operators. Its argument is that higher compliance and tax costs make it harder for the regulated market to compete with offshore sites that offer none of the same safeguards.
For racing, the bigger issue is whether major events keep bettors inside the licensed market
That is why the Cheltenham figure matters beyond one festival week. The regulated betting and gaming sector supports 109,000 jobs, contributes £6.8 billion to the UK economy, raises £4 billion in tax, and remains a major funding source for British horseracing.
The immediate debate is no longer just about the size of the black market. It is about whether the UK can tighten oversight and raise taxes without making it easier for illegal operators to win more of racing’s biggest betting moments.
