The UK Gambling Commission has published the first in a series of reports on illegal online gambling in Britain. The regulator said the study is intended to build an evidence base on how the black market operates and why people are drawn to it. Chief executive Andrew Rhodes described unlicensed markets as unsafe, unfair, and linked to crime, emphasising that tackling them requires detailed knowledge of how they function.
Focus of the initial report
This initial report examines behaviours, motivations, and profiles, with future publications set to look at engagement patterns, enforcement strategies, and the challenges of curbing illegal play. While licensed platforms provide the basis for expert insights on large game selections, strong welcome offers, and fast payouts, the Commission notes that some gamblers still opt for unlicensed sites in search of similar benefits without the same protections. That contrast underpins the study’s mapping of consumer groups.
Why gamblers turn to unlicensed sites
The findings show that many of the motivations behind unlicensed play mirror those in the regulated sector, such as interest in odds and promotions. Other drivers stand out: cryptocurrency payments, the ability to continue betting after self-exclusion, and cases where users are unaware that a site lacks a licence. The part of research that discusses consumers of the illegal gambling market identifies four groups: self-excluders who return despite restrictions, skilled advocates seeking new game types, social explorers introduced through social media, and accidental tourists who arrive by chance. International comparisons in the report note that unlicensed gamblers are often younger men or high-stakes players looking for products unavailable in their home markets.
Scale of the black market
A 2024 report by the Betting and Gaming Council and Frontier Economics estimated that about 8% of UK gamblers – roughly 1.5 million people – had used a black-market site in the previous year. That figure, while separate from the Commission’s research, illustrates the potential scale of unlicensed play alongside the behavioural patterns described in the new report.
Licensed market versus unlicensed risks
The regulated market shows a very different picture. HMRC figures in the UK betting and gaming statistics recorded receipts of more than £3.6 billion in 2024-25, highlighting the size of licensed activity and its contribution to public finances. Set against this, the risks of unlicensed operators become clearer.
Commission actions and future plans
Rhodes said the Commission is expanding disruption measures and working with partners across government and industry to reduce harm. A new Illegal Gambling Hub has been launched to help consumers recognise and avoid unlicensed services. He added that the study marks an important first step in building knowledge of a complex area, which will guide future action. Efforts to tighten oversight in gambling echo wider moves in financial services, with the FCA preparing lending protections for BNPL customers to ensure affordability checks and complaint rights in another growing sector.
Next steps for research
The Commission has stressed that this report is only a starting point. Further studies will follow, giving policymakers and regulators the evidence needed to limit black-market activity while ensuring the licensed sector continues to provide safe and reliable services for UK consumers.
