Unlicensed gambling operators in the United Kingdom are projected to process £36 billion in betting volume by 2031, according to a new industry report. The offshore segment has expanded steadily over the past five years, drawing activity away from regulated domestic providers.
Market Shifts and Tax Impact
H2 Gambling Capital data shows offshore turnover rising from £5 billion in 2019 to £16.6 billion in 2025. Gross gaming revenue for unlicensed operators grew from £200 million to £685 million during the same timeframe, with forecasts placing the figure at £1.4 billion by 2031. Licensed UK companies currently capture 92 percent of gross gaming revenue, a share expected to fall to 85 percent within six years.
Total online gambling revenue in the United Kingdom is forecast to increase from £8.8 billion to £9.6 billion in nominal terms. Inflation adjustments, however, indicate a real decline in overall market value. The report links the offshore growth to scheduled tax increases.
Remote gaming duty will rise from 21 percent to 40 percent in April 2026, while the online betting tax will reach 25 percent in April 2027. These measures could reduce the iGaming segment gross gaming revenue by 5 percent in 2027, lowering it to £5.39 billion.