The UK Gambling Commission (UKGC) has initiated its first in-depth study of the black market for online gambling in the UK, aiming to bolster its efforts in monitoring and curbing illegal operations. The study, which is slated for release in late spring 2025, will provide the regulator with crucial data and insights into how and why consumers access unlicensed gambling websites, enabling the UKGC to refine its detection methods and estimate the overall size of the black market.
The Commission is focusing on gathering data on web traffic and player behavior across unlicensed platforms. Using web traffic analysis tools and gambling behavior data, the UKGC is developing a model to estimate the gross gambling yield (GGY) of the black market. By incorporating player spending data from licensed operators and search traffic data, the regulator aims to create a clearer picture of the scale of illegal gambling activity in the UK.
Data-Driven Approach to Tackling Unlicensed Gambling
To estimate the GGY of the unlicensed market, the UKGC is combining web traffic data from illegal gambling sites with average player spending information. The player spend data, which was collected between 2018 and 2019 from over 139,000 online gambling accounts at seven UK operators, is being used as a reference point to calculate GGY. According to the UKGC, the average spend on online slots across illegal sites is estimated at £0.32 per minute, though the regulator notes that the methodology does not yet account for higher spending on activities like sports betting.
The UKGC’s study will also focus on consumer motivations for accessing unlicensed sites. In its research, the Commission has identified key reasons, including avoiding Know Your Customer (KYC) checks, better offers, and the use of Virtual Private Networks (VPNs) to bypass restrictions. With this understanding, the regulator hopes to improve its strategies to disrupt illegal activities.
Future Phases and Collaboration
The UKGC plans to expand its study by examining additional channels that connect players to unlicensed gambling, such as social media platforms and encrypted messaging apps like WhatsApp and Telegram. It will also investigate the role of streaming services like Twitch and Kick, which may direct players to illegal gambling sites.
Licensed operators are encouraged to collaborate with the UKGC by providing data that can improve the study’s accuracy. “Tackling the unlicensed market is a shared goal, and we encourage any feedback for ways we can improve our methodology,” the Commission said.
The first results from this comprehensive study will be published in 2025, providing the UKGC with a stronger foundation to regulate and monitor the UK’s black market for gambling.
Source:
Unlicensed Gambling: Using Data to Identify Unlicensed Operators and Estimate Usage. gamblingcommission.gov.uk. October 2024.
Your feedback
Please enter your comment.
Your comment is added.
