Great Britain’s Gambling Commission has urged consumers to become more aware of illegal gambling websites after its first in-depth report revealed that most people using these platforms did not realise they were unlicensed.
The study, “Illegal Online Gambling: Consumer Awareness, Drivers and Motivations,” is the first in a series of reports aimed at understanding the black market, and has been commissioned by the Gambling Commission. It highlights why people are drawn to unlicensed operators, which groups are most at risk, and how regulators can respond.
Low Awareness of Illegal Sites
A key finding was that many players lacked awareness of which operators are illegal. Some admitted they did not know how to check for a licence, while others assumed all sites offering services in Britain were regulated. Yet, most agreed it was important for websites to hold a licence. This lack of understanding emphasizes the need for increased involvement from the Gambling Commission.
Interestingly, consumers often used illegal sites as a supplement to licensed platforms rather than as their sole choice. This points to a blurred line in consumer behaviour between regulated and unregulated gambling.
Why Players Turn to the Black Market
The Gambling Commission identified several reasons behind the use of unlicensed websites. Players said they sought:
- A wider range of games and content unavailable on licensed platforms.
- Better odds and different currencies, including cryptocurrency.
- A way to bypass safer gambling tools such as age verification, ID checks, and deposit limits, a challenge observed by the Gambling Commission.
Worryingly, some players who had self-excluded in Britain turned to illegal sites to resume gambling before their exclusion period ended. This undermines national safeguards such as the self-exclusion scheme.
Who Are the Users?
The report grouped users of black market sites into four categories:
- Self-excluded players, who return to gambling via illegal platforms.
- Skilled players, who deliberately choose unlicensed operators to gamble with non-GBP currencies.
- Social explorers, who discover illegal sites through social media, forums, or friends.
- Accidental tourists, who stumble upon unlicensed platforms without realising they are illegal, an area of concern for the Gambling Commission.
Data showed that younger men aged 18–24 were most likely to use black market sites. People with a high Problem Gambling Severity Index were also more engaged with these operators. Popular products included online football betting, slots, bingo, and virtual games.
Next Steps from the Regulator
Although the Commission acknowledged limitations in the study—such as reliance on self-reported behaviour—it drew several clear conclusions. The top priority is to increase consumer awareness so people can identify licensed operators and understand the risks of illegal gambling.
Other recommendations included:
- Targeted education campaigns for at-risk groups.
- Stronger regulatory scrutiny of payment methods, marketing, and affiliate practices, the Gambling Commission recommended.
- Cross-border cooperation to limit access to unlicensed platforms.
- Continued monitoring to measure progress.
“The illegal online market is unsafe, unfair and criminal,” said Gambling Commission chief executive Andrew Rhodes. “That is why the Commission has invested heavily in this area in recent years. To combat the illegal market effectively, we need a deep understanding of how it operates. This report is a crucial step forward.”
Rhodes added that since April 2024, disruption activity against illegal operators has increased ten-fold, and the Commission will continue working with partners to strengthen the regulated market.
