The UK Gambling Commission (UKGC) has joined a slew of European regulators in the fight to strengthen measures against illegal online gambling.
Regulators from Austria, France, Germany, Italy, Portugal, Spain and Great Britain released a joint statement outlining the threat posed by the illicit market and how they plan to take action.
“Illegal online gambling undermines the entire regulatory framework designed to protect the public interest,” read the UKGC statement.
“Its borderless nature and the speed of technological innovation make it easier for illegal operators to evade regulatory oversight. This creates significant risks for consumer and public health protection, endangers public order and harms the activity of legitimate operators.”
The group has committed to sharing information on illegal operators, as well as knowledge and better practices in identifying, investigating and sanctioning operators outside the law.
Stark EU figures
This directive follows the release of concerning figures from a European Casino Association-commissioned Yield Sec study, which estimates that the European Union’s black market dwarfs the regulated sector by more than double, and is currently worth €80.6bn in gross gaming revenue annually.
As a result, the EU’s 27 member states could be losing out on over €20bn in vital tax revenue each year.
“Illegal online gambling is not a marginal issue; it is an economic and societal threat. Every euro lost to criminal operators is a euro stolen from European citizens, from legitimate and licensed businesses, and from our communities,” said Erwin van Lambaart, Chair of the ECA, on the findings.
A recent in-depth study from the UKGC also explored engagement within the black market, detailing that the vast majority of use comes from males between the ages of 18 and 24.
Furthermore, it also revealed that black market users are active gamblers, and usually rank eight or above on the PGSI problem gambling scale.
According to the report, they typically engage with the black market to bet on football or to play online slot games. The motivation behind searching for illegal sites is most often better odds and offers, games unavailable elsewhere, access to alternative payments like crypto, no stake limits, and a low entry barrier – meaning weak ID or financial checks.
Nonetheless, only a minority of people were able to name specific black market operators – “numerous” responses named licensed providers as such. Almost all, however, responded that having a licence in the UK is important.
As a result, the Commission’s report found a “disconnect between perceived license importance, understanding if an operator is licensed, and knowledge of how to verify that”, underpinning that the black market circles in on the most vulnerable players who are increasingly likely to be at risk of problem gambling.
Social media ads
The group of regulators also aligned on issuing a stern call to action for digital platforms and social media networks to elevate their control mechanisms to prevent advertising content from unauthorised operators.
This sentiment comes at a time when Meta is facing intense scrutiny over a Reuters report that claims the tech giant projected that 10% of its overall annual revenue for 2024 – approximately $16bn – came from running ads for scams and banned goods, including online casinos.
“We express our common concern regarding the increasing proliferation of advertising targeting our jurisdictions by unauthorised operators, particularly through digital channels such as social media, video platforms, and affiliate networks,” added the UKGC.
“These activities not only violate our national laws but also expose citizens — including minors and vulnerable individuals — to significant risks associated with illegal gambling.”
The playing field is significantly uneven when it comes to marketing, with the black market unrestricted in who they can engage with as ambassadors. This has been highlighted in recent times with the likes of Bonnie Blue and Andrew Tate both agreeing deals with crypto operators.
Gambling giant Flutter has emphasised this, accusing the black market of flooding the internet and social media “without any checks”, while the regulated market is forced to adhere to stringent advertising guidelines.
