The UK Gambling Commission has released the first phase of a new study that seeks to provide insight into the illegal online gambling sector in the UK.
Initially focused on consumer awareness, drivers and motivations to engage with the black market, the research, conducted by Yonder Consulting, revealed only a minority of players were aware they were straying into the illegal market.
The research also found that those using the black market were more likely to prioritise better odds, playing games unavailable in the UK and alternative payment methods.
Others chose to do so due to the lower barriers to entry, such as ID verification processes, and the ability to circumvent protection measures like self-exclusion.
Andrew Rhodes, Chief Executive of the Gambling Commission, commented: “The illegal online market is unsafe, unfair and criminal – that is why the Commission has invested heavily in this area in recent years.
“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 a crucial step in building that understanding in a very complex area to research.”
According to the research, users of illegal sites fall into four distinct categories.
‘Self excluders’, those who have previously chosen to self-exclude from licensed sites but feel the urge to gamble again.
Meanwhile, ‘social explorers’, players who typically discover sites through social media and affiliate websites, and ‘accidental tourists’, are both likely to be unaware they are playing on an illegal site.
“I didn’t realise these sites might be unlicensed. I didn’t even think about their being UK based or otherwise,” said one respondent in the latter category.
Finally, ‘skilled advocates’ are players who “knowingly and systematically engage with illegal websites”, and are motivated by the desire to acquire new skills and explore a variety of new game types.
Individuals in this group tend to find websites by engaging in conversations with other gamblers through platforms like X, Whatsapp, Facebook, Telegram and Reddit.
The Betting and Gaming Council estimates that £2.7bn is staked annually on the online black market in the UK, equivalent to 2.1% of the amount staked with regulated operators.
Despite engaging with black market sites, the majority of respondents agreed that it is important for operators to hold a licence to offer their services in the UK.
“We are determined to protect consumers and maintain confidence in the regulated sector by taking robust, evidence-led action,” Rhodes emphasised.
“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.”
The release of the study marks the start of a phased publication in the coming months, with later work focused on engagement and data trends, enforcement and disruption activity and the challenges of estimating the size of the UK’s black market.
