A rethink of prevention strategies is essential to stop the general public from engaging with black market operators, encroaching on the UK’s regulated gambling market.
The warning comes from gambling harms awareness and prevention campaigners – Deal Me Out (DMO), who have published the Evaluation Report on Black Market Gambling and its UK presence.
Significantly, the report seeks to provide the perspective of those who have engaged with unlicensed operators, offering audiences a deeper understanding of vulnerabilities and the reasons individuals turn to black market gambling.
The report states: “Over the last five years, we have become increasingly concerned about the surprising prevalence of illegal gambling in the United Kingdom, particularly among children and vulnerable people. Since our inception, we have witnessed regulation that was intended to prevent harm at a population level, but which may in fact be worsening harm for those most at risk.”
“Deal Me Out has been heartened to see a sizeable shift in rhetoric on the black market from all sides of the debate. Academics, clinicians, charities, politicians, industry and regulators are now showing greater recognition of the black market as a real threat to people in the United Kingdom.”
Black market pathways
Audiences must recognise the pathways used by black market operators to engage with individuals, including actively targeting those with lived experience of gambling harms and gamblers frustrated by restrictions and product limitations.
“Respondents who gamble responsibly told us they used the black market as a way to avoid regulation – particularly to access restricted features such as bonus buys, turbo spins, and higher bet limits. Others used it to circumvent enforced deposit limits imposed by licensed operators.”
Black market operators gain additional exposure through content creators who promote their bonuses, jackpots and games on livestreams via Kick, Twitch or TikTok. This exposure is amplified by affiliate marketers, who target search terms designed to bypass verification and self-exclusion tools.
Children and youth audiences represent a high-risk group, as private messaging platforms such as Discord and Telegram are used by operators to target them directly.
“A single UK-based YouTube gambling content creator received 1.06 million views on their videos between 1st and 31st October 2024. This influencer promoted a black market site and shared affiliate links that allowed viewers to bypass regulations.”
Social consequences
According to DMO’s survey results and interviews with individuals with direct experience of gambling, 67% of participants accessed black market websites to evade Gamstop self-exclusion restrictions.
One extreme case reported depositing £129,000 in just 14 days while receiving Universal Credit.
The report also estimates that more than 420,000 school children are engaging in black market gambling, particularly through blockchain-based platforms using virtual currencies.
A legal grey area exists, as these websites often allow gambling using in-game currency, fiat and cryptocurrency, while also featuring games developed by UK-licensed providers such as Hacksaw and Evolution.
DMO’s evaluation revealed that over £10m in deposits have been made to black market gambling platforms:
- £3.6m from individuals with gambling addiction (N=100)
- £1.9m from general consumers (N=100)
- £5.1m from just 10 content creators promoting Black Market sites
Alarmingly, 61% of addicted respondents said they had money stolen after trying to withdraw winnings. One respondent on Universal Credit deposited £129,000 within two weeks.
Policy Balance
The evaluation was carried out when the government and Gambling Commission were introducing new consumer protection measures, including deposit limits, affordability checks and the banning of features like turbo spins, bonus buys and auto spins on slot games.
However, these restrictions have created a disconnect with general gambling consumers, many of whom are turning to the black market as a result.
“Well-intentioned regulation designed to reduce gambling harm is, in some cases, having the opposite effect — pushing frustrated consumers toward the unregulated black market, where protections do not exist and risks are significantly heightened.” — Deal Me Out.
To combat the black market, policymakers must urgently rethink affordability checks and stake limits, and re-evaluate policies around the regulation of blockchain and cryptocurrency gambling.
Immediate action is needed to close loopholes in football sponsorship and social media advertising that allow black market promotion to persist.
Authorities must establish a framework involving government, health, education and industry sectors. In which public education is viewed as a critical domain to empower consumers to distinguish between regulated and illegal gambling sites.
The report concludes: “To effectively protect consumers and prevent further migration to the Black Market, we must move beyond enforcement alone. A balanced approach that combines sensible regulation, robust education, and cross-sector collaboration is essential. The future of gambling harm prevention depends on our ability to adapt — not just react.”
