Illicit operators are using the branding of “trusted charities and educational institutions” to deceive customers and flaunt safeguarding checks.
A damning report for the UK Betting and Gaming Council (BGC) by researchers Alvarez & Marsal (A&M) laid bare the aggressive and immoral strategies deployed by the unlicensed sector.
Black market operators are bypassing marketing filters used by search engines and social media by assuming names and brands associated with trusted organisations.
Further information from the BGC revealed that the most common use of this technique is related to “not on GamStop” casinos, which target players viewed as the most vulnerable, as they have previously self-excluded from the regulated sector.
A search on Google for the term ‘not on GamStop’ reveals several instances of defunct websites being hijacked by affiliates promoting these unlicensed websites.
These include an archive for the Independent Review of Learning Disability and Autism in the Scottish Mental Health Act, a tourist information page for the North Devon town of Bideford and a website dedicated to news about the games console PlayStation.
The tactic is widespread and being utilised aggressively across the black market – previously, a domain of Nigel Farage’s Brexit Party was also expropriated to promote unlicensed casinos outside of the GAMSTOP network.
In each instance, the webpages carry similar messages providing information about the positives of accessing ‘non GamStop casinos’, as well as a list of such sites.
Alongside these examples, it also appears that the consumer reviewing platform Trustpilot has been infiltrated by the black market, as a search of the word ‘Gamestop’ returns 215 results for various affiliates and casino platforms.
“Illegal operators are advertising aggressively online with no safeguards, no age checks and no consumer protections, posing a huge risk to consumers,” emphasised the BGC’s CEO, Grainne Hurst, who called for a “serious approach to advertising” led by a focus on curtailing the black market.
Tim Miller, the UK Gambling Commission’s Executive Director, recently called out Facebook and Instagram owner Meta for the social media giant’s lack of action when it comes to curtailing similar adverts, accusing the firm of “taking money from criminals and scammers”.
The BGC-commissioned report states that the black market is spending between £500m and £700m on advertising each year, compared to £1.15bn for the regulated industry – split between £341m on broadcast advertising and £768m on digital advertising.
Given that the unregulated sector is unlikely to spend money on broadcast advertising, the figures suggest a comparable advertising spend between the two sectors.
Alongside the above tactic, researchers also raised a warning flag over the use of artificial intelligence to target vulnerable individuals.
“Future threats posed by advertising by illegal operators include the use of generative artificial intelligence to create appealing advertisements outside the bounds of regulatory restrictions,” the report stated.
“Developments in personalisation may allow illegal operators to target potentially lucrative customers more easily, many of whom may be vulnerable.”
Overall, the study found that advertising spend in the sector is continuing to decline year-on-year, in a theme that is only likely to continue as operators have already pledged to reduce promotional spend in reaction to upcoming tax hikes in the UK.
Meanwhile, 20% of the recorded spend was dedicated to safer gambling messaging, in addition to the messaging that is mandated to appear within all advertisements.
“Gambling advertising by licensed operators is continuing to fall, with spend increasingly concentrated on safer gambling messaging and consumer protections,” Hurst concluded.
“Our members operate within some of the strictest advertising rules of any industry and continue to raise standards across the sector.”
iGaming Expert Analysis: The scale of the fight against the black market for UK governance simply can’t be understated. As tax hikes in the UK squeeze the marketing spend of regulated operators further, the infiltration of illicit actors across social media and search engines should be a grave concern for policymakers seeking to protect the most vulnerable players.
