UKGC Operators Warn Regulations Could Fuel Black Market Growth

2026 has seen the UK Gambling Commission (UKGC) enforce higher expectations for consumer protection and safeguards after legislation from 2025 passed, now coming into effect. With new restrictions on promotions and advertising, changing enforcement outcomes, and roadmaps for future changes in the spring and summer, operators will have a lot to manage and plan for. At the same time, the UK’s iGaming industry is backlashing against incoming tax increases, warning of potential for more illegal gambling. 

What Changed in UKGC Promotion Rules?

The key shift in policy for operators comes through the UKGC’s treatment of promotion packages, which came into effect on January 19th, 2026. There are two key changes that operators must now be aware of

1. Mixed production promotion ban

Operators can no longer offer bonuses with conditions based on playing across multiple products. 

2. Bonus wagering requirements capped at 10 plays

When bonuses require play through before withdrawals, the UKGC has limited the requirement to 10 times of play, attacking the fact that high wagering requirements can drive longer and faster gambling sessions for players. 

The Commission also reworded the LCCP’s rewards section (Social Responsibility Code 5.1.1) to create clear expectations. 

The UKGC views promotions going against its principles of consumer safety, health, and risk mitigation against gambling addiction. These changes reduce the cross-product playing and remove aggressive wagering mechanics, which operators see affecting their player acquisition and retention strategies.  

Why Headlines Spiked in January

Bonus & Promotion Rules Got Stricter. Operators Felt It. 

The new regulations rolled out this month affect how promotions for players are allowed to be designed. The UKGC specifically called for promotions to be “safer and simpler”, back in March 2025, when the regulations were just being announced. 

This was not done without basis, as the Commission claimed its proposed policy changes were rooted in the findings from a 2023 White Paper evaluating how iGaming had changed since 2005, which noted an aim to “...tackle aggressive advertising practices like using bonuses in ways which exacerbate harms”, consistent with UKGC’s stance on public health and risk. 

As a result, the “safer and simpler” regulations package banned mixed-product promotional offers (such as requiring a sportsbet to unlock casino game rewards) and cap bonus wagering requirements to 10x, which “decreases the likelihood of harm, reduces complexity, and improves transparency while maintaining consumer choice”, per the UKGC.

Last December, the UKGC’s blogpost told operators what to expect, and “crackdown” headlines came to the forefront, while product and CRM (customer relationship management) teams scrambled to re-evaluate their designs and implementations while being ready to deploy changes for compliance. Affiliates had to adapt, being careful to make sure their messaging aligned with the then-incoming regulatory changes. 

New Reporting & Consumer Laws Are Coming in March & April

Something that has flown under the radar among headlines is what operators now need to disclose, and how quickly. 

The UKGC used last December to also announce changes meant to improve transparency in ownership/financing structures while bringing the LCCP in further alignment with Digital Markets, Competition, and Consumers (DMCC) Act 2024. 

The announcement explained these changes as

• revisions in financial key reporting events to account for the “increase in complexity of mergers and acquisitions, and the increased globalisation of gambling”.

• Updates to consumer facing laws and regulations with “references to the new DMCC Act.”

The consumer updates would in effect replace two previous policies 

• Consumer Protection from Unfair Trading Regulations 2008, and 

• Alternative Dispute Regulation (ADR) for Consumer Disputes (Competent Authorities and Information) Regulations 2015

Thus updating the LCCP for new standards. The new revision for key financial reporting is set to come into effect for March 19th, 2026, while only some of the consumer laws will follow April 6th, depending on the Department for Business and Trade (DBT) to enact changes nullifying previous ADR regulations. 

For operators, this means adjusting internal triggers, reviewing legal workflows, and Mergers & Acquisitions activity. 

Deposit Limits Will Get Stricter in June

In addition to all of these changes, the UKGC also updated Remote Gambling and Software Technical Standards (RTS) regarding deposit limits and other financial elements. Starting on June 30th, revisions to RTS 12B will implement some important shifts.

• Only gross deposit limits can be described as deposit limits, and

• Operator’s systems must prevent further deposits once the limit is reached until the period resets or the customer increases the limit (subject to cooling off periods)

Now operators must contend with stricter language around user experience and technical obligations. 

Previous UKGC Enforcement Could Show What’s Next

The last quarter of 2025 showed a wave of fines, suspensions, and other enforcement measures in the UKGC’s register. 

• Maple International Ventures, operator of Lottomart.com, was ordered to pay 360,000 pounds in September after failures with AML and social responsibility compliance. 

• Spribe OU received a software license suspension after being found with “serious non-compliance with the hosting requirements of our licensing framework” in October.

• Paddy Power Betfair was ordered to pay 2,000,000 pounds in December after the Commission found failures in social responsibility, specifically around deposit and wager limits.

These are just a few of the cases, but illustrate the UKGC’s increasing push towards real enforcement with consequences, and new expectations for operator’s compliance. The fines and penalties come based on revisions announced last June, meant to create refined structure and clarity based on severity and seriousness of regulatory violations. 

UKGC Operators Warn About Black Market and Costs

UKGC isn’t alone in pressuring operators. The broader UK policy in 2026 comes with more costs and higher levels of scrutiny. Licensed online operators have a reservation about whether this will really be beneficial, or help illegal gambling spread.  

Remote Gaming Duty Will increase to 40% in April

In November 2025 The UK’s Treasury declared It would increase taxes on remote gaming from 21% to 40% by April 2026. Their reasoning was rooted in, once again, public health and safety, claiming “Online casino games and slots are associated with some of the highest levels of gambling harm and this part of the gambling sector has grown rapidly in recent years”. In addition to the increase in duties, the UKGC is set to receive a package of 26 million pounds over 3 years in order to increase enforcement against illegal operators. 

Is the UK Black Market Growing? 

iGaming industry stakeholders and the UKGC seem to have differing opinions. 

According to a report from The Campaign for Fairer Gambling, published earlier this month, 9% of the UK’s online gambling is controlled by illegal operators, who target “vulnerable audiences” throughout illegal sportstreams. 

MPs in the House of Commons argued that the increase in tax duties would add to the illegal market control and create consequences if they weren’t pulled back.

James Wild MP, Shadow Exchequer Secretary to the Treasury said 

“Rather than reducing demand, activity will move to unregulated markets where consumer protections are weaker, fraud risks are higher, and tax revenue is not collected”

He wasn’t alone in his concern. Grainne Hurst, CEO of the Betting and Gaming Council, was wary of increases as well, saying 

“The regulated betting and gaming industry currently supports 109,000 jobs across the country, contributes £4 billion in tax and plays a vital role in funding sport, charities and safer gambling. Undermining the sector with these further tax increases has handed a gift to the growing illegal operators who pay no tax and offer no protections.” 

The iGaming industry sees the tax increase as fertile grounds for furthering black market proliferation, but the UKGC has said the verdict is still out on the actual presence and market control of illegal online operators. Based on four reports published over the course of 2025, the UKGC claims it’s "challenging" to collect accurate data and urged “caution over any estimates presented by third parties or commentators” 

Nonetheless, the increase in enforcement from last year indicates the Commission is busy, and will only get busier as it ramps up regulatory standards. As policies begin to take effect, expect updates regarding the iGaming landscape across Great Britain.