UKGC finalises report on illegal online gambling market

• UK Gambling Commission finalises research on difficulties measuring the scale of illegal online gambling.
• Sports betting is the leading illegal activity, with no clear sign of sustained growth in market size.
• Continued research and cooperation are planned to improve detection and consumer protection.

The UK Gambling Commission (UKGC) has released the final report in a four-part series on illegal online gambling, illustrating the difficulties in accurately measuring the market’s size.

Published in November 2025, the report outlines challenges caused by limited data and stresses the need for collaborative efforts to tackle illegal gambling and safeguard consumers.

Methods and findings

The UKGC analysed multiple approaches to estimate the illegal market, focusing mainly on dwell time (time British players spend on illegal sites) and channelisation, which compares activity on licensed and unlicensed sites using web traffic data.

Survey methods were found unreliable due to poor consumer recall. Although these methods offered useful insights, none provided a definitive figure for the illegal market size.

Sports betting emerged as the most popular illegal activity, involving 34% of participants in a small sample. Bingo, slots, and instant win games also featured, but the Commission advised caution due to sample size limitations. There was no clear evidence of sustained growth in illegal market participation within the monitored areas.

Data challenges and implications

The report shows difficulties in capturing app-based gambling data and calls for cooperation from licensed operators to verify information. The Commission warns that a data error as small as 0.5 per cent in channelisation estimates could significantly alter gross gambling yield (GGY) figures.

Consumer motivations vary, including unawareness of illegality and intentional avoidance of regulated markets due to restrictions or self-exclusion. These factors sustain risks to consumers and the integrity of the regulated market.

“Illicit gambling remains a serious threat to consumers and to the integrity of the regulated market,” said Andrew Rhodes, Chief Executive of the UK Gambling Commission.

“While measuring the full scale of the problem is complex, our understanding is growing—and so too is our ability to disrupt illegal operators. Our independent research has strengthened the evidence base, improved transparency, and underlined that progress depends on a collective effort across sectors.”

The Commission plans further research and enforcement efforts, including monitoring VPN use and search activity related to unlicensed operators. Updating engagement models with new data aims to enhance detection and disruption of illegal gambling. This ongoing work is essential to protect consumers and ensure a transparent, fair market for operators and regulators.

The report shows the persistent challenges regulators face in measuring and combating illegal online gambling. Improved data accuracy and broad cooperation across the gambling sector remain important for protecting vulnerable players and maintaining industry integrity.

Sources: UK Gambling Commission report, World Casino Directory