UKGC: Illegal Gambling Market a Threat, but Growth Not Proven

_{Illegal Online Gambling in Britain: What the Data Really Shows (Image: Hanna Kuprevich/Alamy)}

Illegal online gambling remains a persistent threat to consumers in Great Britain, but fresh analysis from the UK Gambling Commission (UKGC) suggests that growth in the market may not be as clear-cut as often claimed.

The findings come in the second report of a series from the Commission’s Data Innovation Hub, which is tracking trends in consumer engagement with unlicensed gambling sites.

Tracking the Black Market

The UKGC has made tackling illegal gambling a central part of its corporate strategy. Using new data-led methods, the regulator says it can now more effectively identify sites and disrupt their operations.

By automating intelligence gathering, investigators can prioritise action against sites with the highest traffic. This process, according to the Commission, has freed up enforcement resources and allowed quicker intervention when suspicious activity spikes.

“Closer work between our data and enforcement teams is an important way we are achieving this,” said Tim Livesley, head of the Data Innovation Hub writing on the Gambling Commission's blog. 

The latest report covers 15 months of data, drawn from sites accessible via search engines and affiliate marketing links. The sample includes both traditional gambling formats such as casino games, online slots and sports betting, as well as newer offerings like crypto casinos.

No Evidence of Sustained Growth

A key observation in the report is that while illegal gambling sites remain a serious concern, there is little sign of sustained growth in consumer engagement.

“We are often told this market is constantly growing, and definitive claims are made about what is driving this – but sustained growth is not visible in our data,” Livesley said.

That finding, however, comes with caveats. Measuring an illicit activity is inherently difficult: websites disappear, new operators emerge, and some activity takes place through mobile casino apps or hidden channels that may escape detection. VPN use also complicates traffic analysis.

The Commission emphasised that its methodology is still in development, but noted that even imperfect data can help focus disruption efforts where they are most needed.

Industry Warnings on the Black Market

The regulator’s analysis comes at a time when industry voices have warned that heavy-handed regulation could push more consumers toward unlicensed platforms.

Casinos.com has previously reported that the European Gaming and Betting Association (EGBA) and the Malta Gaming Authority (MGA) have urged lawmakers to strike a balance between consumer protections and fair taxation, warning that overly strict measures risk driving players to the black market.

Industry experts have also stressed the urgency of tackling illegal gambling head-on. In an earlier Casinos.com interview, one specialist Barry Gibson the Ex Chairman of Entain said failing to act decisively “creates a perfect storm where players are tempted into unregulated environments that lack the most basic safeguards”.

More recently, the Betting and Gaming Council cautioned Chancellor Rachel Reeves against punitive tax hikes, arguing that higher costs on licensed operators could make black market sites more appealing by comparison.

The UKGC’s finding of no proven growth adds nuance to these warnings, suggesting that while the threat remains real, its trajectory may be more complex than industry groups suggest.

Consumers Still at Risk

The absence of growth does not diminish the danger to consumers. Unlike licensed operators, unregulated platforms may fail to protect vulnerable players, safeguard funds, or ensure fair play.

“This market presents a risk to consumers, and we will use data to work harder and smarter to disrupt it,” Livesley said.

The Commission has previously warned that black market gambling appeals to some players because of perceived anonymity, aggressive affiliate marketing, and unverified bonus offers. That demand poses challenges for regulators as they attempt to balance enforcement with education.

What Comes Next?

Looking ahead, the UKGC plans to refine its tracking system, including assessing the accuracy of web traffic estimates. It has invited licensed operators to collaborate on data-sharing, which could help validate the findings.

Longer-term monitoring will also be key to identifying whether fluctuations in illegal site traffic are seasonal or part of wider shifts in gambling behaviour.

The next report in the series is expected later this year and will focus on how enforcement actions impact consumer engagement with illegal operators.