'Everyone is losing out' - racing figures fear for sport in light of survey's findings over growth of black market

Trainers' chief Nick Alexander has claimed that “everyone is losing out apart from the illegal betting companies” after results from the Racing Post’s Big Punting Survey showed more gamblers are being lured to the black market than ever before.

The findings of nearly 10,000 bettors surveyed detailed how more than one in three high-staking punters – those who bet £1,000 and more – had used the unregulated market in the last year, while there had also been increases in the number of people subjected to affordability checks and account restrictions since the survey was last undertaken in 2023.

Alexander, the National Trainers Federation president who trains near Glenrothes, said the survey results left no doubt that the black market had thrived since affordability checks had come in and that this was impacting the funds coming back to racing via the levy.

He said: “If the Gambling Commission weren’t already aware of what’s going on with people being driven to the black market by affordability checks then they should be by now. 

“It’s obvious that the black market is just going to grow and grow. At the end of the day it’s expensive for racing and the government. Everyone is losing out apart from the illegal betting companies.”

Alexander’s position was supported by other racing and betting figures, with the Cheltenham Festival cited as potentially fertile ground for illegal bookmakers offering betting via encrypted messaging apps such as WhatsApp to expand their influence.

Former professional gambler Anthony Kaminskas, who now runs bookmaker AK Bets, said punters more often than not would find the “path of least resistance” when presented with requests for sensitive financial documentation due to affordability checks.

“The survey results are wholly unsurprising and, if anything, I think they underplay the black market,” he said “If you want to gamble at higher levels and you don’t want to send evidence about your salary etc to your bookmaker then it’s increasingly becoming the only option.

“The last time I looked at our data, 78 per cent of people said they wouldn’t provide documents if asked. On top of that, we get correspondence to our customer services inbox which says, ‘I’m not sending you anything, I’ll go and bet on the black market’. Our industry is so highly regulated and people are going to take the path of least resistance.”

He added: “People think that turnover is going down on racing because of what is happening, but that’s not the reality at all. It’s simply that the turnover is going elsewhere.”

The Cheltenham Festival could be a target for black market operators to recruit puntersCredit: Michael Steele

Chris Dixon, who combines his role as Racing TV presenter and analyst with betting and ownership via the Horse Watchers syndicates, said the survey was strong evidence to back up anecdotal views that the black market was growing in appeal because of affordability checks and bet restrictions.

He said: “Having some proper evidence from a survey like this rather than just chatting to people is helpful in showing how we have got to this position and what we need to try and change. I wish the whole thing would go back to dealing with regular bookmakers who would lay a fair bet. 

“I know plenty of people who have to bet on the black market now and have had a similar experience to the ones in the survey. I don’t know what sort of model those bookmakers are using, but it seems that someone asks for a bet and that bet gets put on. These people can’t get a bet on like that anywhere else. 

“The fact is the black market has taken hold and we’re going to struggle to get people to turn away from it as things stand.”

The underlying strength of the betting market was emphasised by Paul Leyland, co-founder of strategic advisory business Regulus Partners, with this making the festival a prime target for black market recruitment.

He said: “Cheltenham is a great opportunity for mainstream bookmakers to recruit mainstream gamblers, and that’s what will happen. But what will also be going on at the same time is that Cheltenham will be being used by illegal bookmakers to recruit new customers. 

“Let’s suppose there are ten people at Cheltenham who are well connected and already use WhatsApp betting. If they each convert ten new people and they are serious hitters, that doesn’t necessarily show up in the Cheltenham numbers for 2025 vs 2024, but it shows up in that creeping cumulative impact.” 

Read more on the Big Punting Survey here:

Failure to act on black market 'would be an act of vandalism' in wake of Big Punting Survey findings 

Betting account restrictions on the rise as two in five report being limited 

Jumps or Flat? Our survey reveals a clear winner in punters' affections 

How do young people feel about racing and betting? The results might surprise you  

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