Gambling Commission Probes Consumer Habits in Illegal Online Market

_{Gambling Commission research informs drivers and motivations that lead consumers to gamble with unlicensed operators. (Image: Alan Evans/Casinos.com}

 The Gambling Commission has released the first in a series of reports examining the illegal online gambling market in Great Britain. Published 18 September, the report looks at how consumers interact with unlicensed sites, their motivations, and the risks they face.

Andrew Rhodes, chief executive of the Gambling Commission, said the research provides critical intelligence in an area that has been notoriously hard to measure.

 “The illegal online market is unsafe, unfair and criminal, that is why the Commission has invested heavily in this area in recent years,” Rhodes said. 

The regulator has increased its enforcement efforts since April 2024, recording what Rhodes described as “a ten-fold increase in our disruption activity.” He added:

“We are determined to protect consumers and maintain confidence in the regulated sector by taking robust, evidence-led action. We intend to continue to work with a wide range of partners to build on this success.” 

Insights From Consumer Research

The Commission’s director of research and statistics, Ben Haden, said building an evidence base for the illegal market is particularly complex because the activity is hidden, unregulated, and often crosses international borders.

“Our work begins with the experiences of consumers themselves and the digital footprints they leave behind,” Haden wrote in a blog post accompanying the report.

 “This tells us about the drivers and motivations that lead them to gamble with unlicensed operators.”

The study, carried out with Yonder Consulting through the Commission’s Consumer Voice programme, found that:
    •    Most gamblers in Britain do not use illegal websites.
    •    Those who do often gamble on illegal sites alongside licensed operators.
    •    Illegal gambling participation is more common among men, younger people (18–24), frequent gamblers, and those scoring 8+ on the Problem Gambling Severity Index (PGSI).

One area of concern is consumers who have self-excluded through GAMSTOP but continue to gamble with illegal operators. With more than half a million people registered with GAMSTOP, Haden noted this group represents a significant target for unlicensed sites.

Why Consumers Turn to Illegal Sites

Motivations vary. Some knowingly choose illegal operators to access new markets, alternative currencies, or different games. Others are drawn by advertising, social media recommendations, or search engine results without realising the sites lack a licence.

Previous research shows British consumers value regulation and expect operators to be held accountable. The Commission says a key question is why some players disregard these protections. Haden said future studies will explore whether industry actions such as account restrictions push players toward unlicensed platforms.

What Comes Next

This report is the first in a phased series that will roll out over the coming months. Upcoming sections will explore:
    •    Engagement data and trends among illegal market users.
    •    Enforcement and disruption activity carried out by the Commission’s Illegal Markets Team.
    •    The challenges of estimating the size of the illegal online market in Great Britain.

A subsequent report will use big data and analytics to track trends in consumer engagement over time. The Commission has also launched an Illegal Gambling Hub, bringing together research, enforcement updates, and guidance on spotting unlicensed operators.

What it Means for Consumers

The Commission’s findings come as concerns grow about the accessibility of illegal online gambling, particularly for vulnerable consumers. Many who turn to illegal sites are already at risk of gambling harms, and without regulatory oversight they face added dangers such as fraud, loss of funds, and misuse of personal data.

A deeper understanding of who uses illegal operators, and why, is seen as essential to designing effective enforcement strategies and protecting players. Haden also raised a wider question: when consumers spend money in the illegal market, is that revenue the regulated industry would want back, given the high proportion of vulnerable players involved?