The Rise of Black Market Gambling: Key Takeaways from the UKGC Report

The UKGC study follows the success of lawmakers in regulating the sector last year. Understanding the demographics most affected by illicit platforms will help target efforts to clean up the iGaming market. The investigation was carried out in partnership with Yonder Consulting and seeks to understand how people end up gambling at unlicensed platforms.

The study identified four key groups gambling illegally:

• Skilled advocates: Users who intentionally look for and visit illegal sites. They’re often on the hunt for “No KYC” casinos, cryptocurrency support and relaxed withdrawal restrictions.
• Social explorers: These are players who visit unlicensed operators following a recommendation. They may or may not be aware of their licensing status,
• Self-excluders: When individuals who struggle with gambling problems put themselves on databases such as Gamstop, they are blocked from any casino licensed by the UKGC. In times of crisis, these users can turn to unlicensed operators.
• Accidental tourists: Curious players can stumble across illegal sites from advertisements or sponsored search results. They often don’t even know they’re on an unlicensed platform.

The existence of the last demographic proves a need for greater awareness surrounding licensing laws. When questioned, a concerning proportion of the public found it difficult to distinguish a regulated operator from an unlicensed one.

Despite this, most maintained platforms should need a licence to operate in Britain. This disparity suggests users are being deceived by illegal sites feigning legitimacy.

Players’ habits on these platforms indicate many users believe they are on licensed sites. Most gaming activity mirrored what would be expected from their respective demographics on legal sites. Bingo, slot games, football betting and virtual gaming were the most popular activities on black-market platforms.

Most players active on illegal sites also gambled at licensed providers simultaneously, suggesting they have no problem with the services and requirements of UKGC licensed platforms.

Men aged 18-24 were found to be most susceptible to playing on illegal platforms, followed by individuals at the high end of the Problem Gambling Severity Index.

Ultimately, most users discovered unlicensed platforms through wanting better odds, exclusive games and more substantial promotions. Others sought to bypass KYC checks or pay in alternative currencies.

UKGC CEO Andrew Rhodes said, “We are determined to protect consumers and maintain confidence in the regulated sector by taking robust, evidence-led action. Since April 2024 we’ve seen a ten-fold increase in our disruption activity, and we intend to continue to work with a wide range of partners to build on this success.”

The industry is heading in the right direction in its approach to tackling the gambling black market. This study marks the beginning of extensive research on the black market. Subsequent reports will test how regulatory changes impact consumer behaviour, and will utilise the Gambling Survey for Great Britain to gain substantial and legitimate data over time.

The UKGC is currently evaluating the potential of awareness campaigns communicating the risks associated with unlicensed operators to help keep players safe while gambling online.

The UKGC licence provides one of the greatest standards of player protection in the iGaming sector. Thanks to their strict requirements, players can relax while gaming online – and they deserve to know when platforms are trying to deceive them.