The gambling black market in the UK has become a growing concern for regulators and law enforcement alike. With the rapid expansion of online gambling platforms, many unlicensed operators have emerged, often exploiting loopholes in regulations and offering their services without the necessary oversight. This proliferation of illegal gambling not only poses significant risks to consumers—such as exposure to fraud and addiction—but also undermines the integrity of the legal gambling market, which is heavily regulated to protect players.

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The UK Gambling Commission (UKGC) recognises the challenges the black market poses and is taking proactive steps to address them. It is initiating a comprehensive study to better understand the scope and impact of the black market in online gambling. This initiative, marking a significant step in regulatory efforts, seeks to enhance the monitoring of illegal gambling activities within the United Kingdom. The first findings of this study are anticipated to be published in late spring 2025, paving the way for more effective interventions against unlicensed operators.

The Objectives and Methodology

The study’s primary objective is to gain insights into consumer behaviour regarding unlicensed gambling websites. According to the UKGC, a better understanding of why and how consumers access unlicensed gambling websites will help them identify unlicensed websites and take action. This understanding is critical for improving data-driven responses and scaling online monitoring efforts to tackle the illicit market.

To achieve these goals, the UKGC will integrate various data sources, including web traffic analytics and gambling behaviour statistics. This approach is similar to studies conducted by European regulatory bodies, which have identified the need for precise estimations of the gross gambling yield (GGY) derived from unlicensed online activities.

Estimating Gross Gambling Yield

The UKGC will estimate the GGY by combining data on web traffic from unlicensed sites with calculated average spending per player. This spending data has been compiled from 139,152 online gambling accounts across seven leading UK operators, reflecting player behaviours observed from July 2018 to June 2019. The initial findings suggest that the average GGY per minute for online slots is approximately £0.32. However, the commission acknowledges that this metric does not adequately reflect the high expenditure by players involved in other gambling activities, such as sports betting.

The regulator is leveraging tools like Google Trends and Similarweb to gather search traffic data. This strategy enables the identification of popular search terms associated with unlicensed betting sites, allowing the UKGC to track traffic and analyse user engagement across these platforms.

Global Insights and Future Considerations

Regulatory bodies in the Netherlands and Sweden have also highlighted challenges regarding player spending within the black market. Their reports indicate a concerning trend where consumers spend more on illegal sites than on licensed platforms. The UKGC’s study recognises this trend: “There is anecdotal evidence from our Consumer Voice research into unlicensed gambling that people’s spending habits are different on unlicensed sites compared to licensed sites.”

Looking ahead, the UKGC plans to explore additional channels that connect consumers to black market gambling, including social media platforms and encrypted messaging apps like WhatsApp and Telegram. The influence of streaming platforms such as Twitch and Kick will also be evaluated for their role in driving traffic to these illegal sites.

Looking To The Future: Collaborative Efforts

The UKGC encourages licensed operators to contribute relevant data that could enhance the commission’s methodologies. In a collective effort to combat unlicensed gambling, the regulator stated, “Tackling the unlicensed market is a shared goal, and we encourage any feedback for ways we can improve our methodology.”

This collaborative approach is crucial, especially as a separate study by the Betting and Gaming Council (BGC) estimated that the UK’s online black market might generate as much as £2.7 billion in bets annually. BGC CEO Grainne Hurst expressed how serious the issues raised by the findings of the study were and how there was an urgent need to take action.

Essentially, this UKGC’s groundbreaking study is a much-needed intervention, and it is hoped that the finding will allow stakeholders to take action to strengthen the fight against