Illegal gambling market under UKGC scrutiny in new study

• UKGC published initial research findings examining consumer behaviour and motivations for using illegal gambling websites
• Four distinct user groups identified, including self-excluders and those seeking alternative payment methods like cryptocurrency
• Commission reports 10x increase in disruption activity since April 2024, with over 750 cease and desist notices issued

The Gambling Commission released the first instalment of research series examining the illegal online gambling market in Great Britain. The study represents the UKGC’s most comprehensive effort to understand consumer behaviour within the unlicensed gambling sector.

The research identifies four distinct categories of illegal gambling users through surveys, interviews and focus groups:

• Self-excluders represent individuals who have blocked themselves from licensed gambling sites but continue playing on unregulated platforms.
• Skilled advocates deliberately seek unlicensed sites to access new games, cryptocurrencies or different odds.
• Social explorers typically discover these platforms through friends, family or online communities.
• The fourth group, accidental tourists, encounter illegal websites unknowingly whilst searching for better odds or specific markets.

The findings reveal that illegal gambling participation occurs predominantly amongst men, younger individuals aged 18 to 24, frequent gamblers, and those scoring eight or more on the Problem Gambling Severity Index.

Many users operate illegal sites alongside licensed operators to supplement their primary gambling experiences.

“The illegal online market is unsafe, unfair and criminal – that is why the Commission has invested heavily in this area in recent years,” said Andrew Rhodes, Chief Executive of the Gambling Commission.

“To be even more effective in combatting the illegal market it’s vital that we have both a deep and broad understanding of how it operates, and this insight is crucial step in building that understanding in a very complex area to research.”

“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.” Rhodes concluded.

The Commission has significantly intensified enforcement efforts since April 2024, issuing over 750 cease and desist notices and disruption orders.

This includes 259 notices to operators and 189 to advertisers. The regulator has also referred over 78,000 URLs to Google, resulting in 50,000 search result removals and 255 website takedowns.

The research particularly highlights concerns about illegal operators targeting consumers who have self-excluded from the legal market through GAMSTOP.

With over half a million consumers registered for self-exclusion, these vulnerable individuals face significant advertising from unlicensed operators seeking to exploit their continued desire to gamble.

Alongside the research publication, the Commission launched a new Illegal Gambling Hub, consolidating research, enforcement updates and guidance for identifying illegal or unlicensed gambling websites.

Three additional research instalments will follow over the coming months, covering engagement data and trends, enforcement and disruption activity by the Illegal Markets Team, and challenges in estimating the illegal online market size in Great Britain.

The Commission acknowledges data collection challenges within this hidden market, noting that consumer-reported intentions often diverge from actual behaviour.