Barry Gibson highlights concerns over the growing black market in gambling and its impact on consumers. (Image: Entain's Linkedin page)

In a recent interview with Simon Clare, Customer Communications Director at Entain, Barry Gibson, the Ex-Chairman of Entain, discussed the alarming rise of the black market in gambling and its implications for consumers and society as a whole.

As a global interactive entertainment company, Entain offers online sports betting and online casino gaming, but it also has a physical presence with betting shops, especially in the UK, where it operates Ladbrokes and Coral betting outlets. Gibson held significant positions positions in the two as well as in other major companies such as Littlewoods and William Hill.

Gibson is a seasoned expert in the betting and gaming industry with over 50 years of experience, whose insights paint a concerning picture of the current landscape. 

Transformative Changes in the Industry 

There are new developments in the gambling industry every year and Gibson noted that technology and regulation are the two most significant shifts he has witnessed over the decades. 

Gibson said, “Technology has revolutionised how consumers access betting products, while regulation has fostered industry growth.” 

According to him, black market operators mimic legitimate betting platforms in terms of technology and user experience. However, they lack consumer protection, do not pay taxes, and do not contribute to societal infrastructure, such as hospitals and schools. 

The Attraction of the Black Market 

Many players are drawn to black market options due to the lack of intrusive regulations, such as proof of earnings for money laundering checks, which legitimate operators enforce. This may lead some individuals to overlook the risks associated with unregulated gambling. 

During the interview, Gibson highlighted a study on black-market gambling, indicating that vast sums of money are spent on the black market across the world.

Overseas international markets are even heavily affected, with countries such as France, where around 45% of gambling revenue is spent in the black market, and Germany, where as much as 60% is lost to unlicensed operators, while in the UK, it accounts for around 5%. This translates to about £4 billion in bets placed without tax contributions.  

Solutions Needed 

Gibson emphasised that there is no single solution to effectively combat the rise of black-market gambling. Recommendations include banning unregulated operators from accessing the financial system and implementing geo-fencing to restrict gambling products in specific markets, and encouraging cooperation between financial services and gambling regulators. 

Gibson urges stakeholders, including government entities and regulated operators, to work collaboratively to address the challenges posed by the black market. He stressed that the financial benefits from regulated gambling play an essential role in funding societal needs. 

As concerns over the black market continue to grow, industry experts like Gibson emphasise the necessity for immediate action to protect consumers and ensure that gambling contributes positively to society.