Gambling Advertising

Debate between Esther McVey and Charlie Dewhirst

Thursday 23rd April 2026 Westminster Hall

[Charlie Dewhirst]

I would like to make a little bit of progress rather than just go back and forth with a Q&A.

We must recognise that betting and gaming is an entirely legitimate commercial practice for responsible gambling firms, as is advertising and sponsorship, but there are already alarming signs that businesses are facing difficulties in this area. The gambling sector is forecast to increase advertising by only 5% this year, which is a slowdown on last year’s 9% increase. Betting and gaming is declining as a share of advertising expenditure, as other sectors are expanding their advertising more rapidly.

Even more worrying is the growth of harmful and illegal gambling operators, the activities of which are unregulated both in the market in general and in gambling advertising in particular. Just a few years ago, licensed operators accounted for more than 80% of gambling advertising, but new analysis published this week by the global marketing intelligence firm WARC has shown that illegal operators now account for almost half of all gambling advertising. Within two years—by 2028—it is expected that they will account for the majority of advertising spend in the UK, overtaking regulated British-based operators.

[Esther McVey]

I know that my hon. Friend understands this arena very well. My concern is that the unregulated black market for gambling is growing at a rapid rate—as he says, it accounts for over half of advertising. The focus on licensed, regulated gambling operators is surely going to squeeze them out of the market, meaning that the illegal market can boom, as we are seeing across the world.

[Charlie Dewhirst]

Absolutely; I could not agree more with my right hon. Friend. We have seen that trend not just in gambling but in tobacco. Taxation levels have become so high that they have created an enormous black market, which I believe has led to the Treasury losing about £6 billion in revenue. Any sector that is over-taxed or over-regulated will be replaced by a black market.

[Charlie Dewhirst]

I used an example of another sector to make a wider point that, if we over-tax or over-regulate anything, it will encourage the creation of a black market. There are various issues with that, whether for those exposed to the black market or for the Treasury, which might have concerns about the impact of a black market on its bottom line. It was a wider point about over-regulation and over-taxation, and there are number of examples of that.

I have already said that we should not allow gambling firms to target children in any way because they are not legally allowed to bet, and there has been progress. The reforms under the last Government were quite robust, and I always welcome ideas about how we can go further on that, but we should not necessarily go too far. Banning gambling advertising in sport, with the exception of horseracing and greyhound racing, feels excessive to me. There are other ways that we can address this.

[Esther McVey]

We are removing advertising for regulated, licensed gambling. Illegal gambling is now so large globally that, if it were an economy, it would be smaller only than that of America and China—that is how big the gambling black market has got.

[Charlie Dewhirst]

My right hon. Friend makes an excellent point. The gambling black market is extraordinarily large globally; it is hugely significant. As I mentioned earlier, there are specific challenges elsewhere in the world where gambling is not allowed at all, but we all know that gambling exists in those countries at very significant levels. That is a matter for other nations to try to solve, but it is an example of how banning something does not stop it happening.

--- Later in debate ---

[Charlie Dewhirst]

The hon. Member has made a number of points on that subject. I will make some progress as I am sure that you, Mrs Harris, are keen for me to wrap up this contribution as soon as I can.

[Esther McVey]

Is it not right to say that we cannot regulate the black economy, so what the hon. Member for Halesowen (Alex Ballinger) is saying is not possible?

[Charlie Dewhirst]

My right hon. Friend has jogged my memory. There is a serious issue here. A lot of this advertising is online in a space that we cannot necessarily regulate, and search engines will bring up these sites with obvious key words. For example, a problem gambler who has been part of GamStop or similar will have access to non-GamStop sites and that will bring up illegal betting sites. There is no way of regulating these particularly easily. That is why we need to be very conscious about what we do to damage our own regulated market.

We are exposing people to unregulated websites where protections for those who need them do not exist. In fact, illegal operators specifically promote those sites on the internet through the various ways that they can advertise in a less regulated space. They also do other things regarding how bonuses are constructed and how they target people and so on. Regulated betting and gaming operators are already committing 20% of their advertising to safer gambling messaging, in addition to the messaging that sits within all advertising. During Safer Gambling Week, 1.53 million safer gambling tool limits were in place—an increase of 22% on the previous year. I was at a gambling shop on my high street ahead of the grand national a couple of weeks back, and it was interesting to note that they now run a similar system to Pubwatch—so it is not just online. They share information about individuals in the local area who have problems and need to be supported should they wish to try and place a bet in one of those shops.

None of those robust protections and specific licence conditions for operators, nor the strengthening of the UK advertising codes in 2022—which included new protections for children and vulnerable adults—will make any difference if the Government drive people into the black market.

In conclusion, banning something does not necessarily stop it from happening, and the Government’s policies and this report—if it were to be implemented—could in theory move more people into that less regulated illegal space. The hon. Member for Halesowen said that he is not anti-gambling, but my concern is that he is anti-regulated gambling by UK companies, and there is a very real danger that we will push people into the black market.