UK Gambling Commission to Study Illegal Gambling Sites

The UK Gambling Commission (UKGC) is currently conducting its first comprehensive study on the UK’s black market gambling sector. This research aims to enhance the UKGC’s ability to monitor illegal betting sites and safeguard consumers. With the study’s initial results expected in spring 2025, the findings are set to help the UKGC tackle unlicensed operators, and strengthen the integrity of the UK’s gambling industry.

Why The UKGC is Monitoring Unlicenced Gambling Websites

The UKGC’s main objective is to better understand how and why consumers engage with unlicensed gambling websites. By analysing these behaviours, the Commission hopes to develop more effective tools for identifying and shutting down illegal platforms. They will conduct their study by combining web traffic analysis with gambling behaviour data, which is a similar approach used for studies by other European regulators.

One area of the study focuses on estimating the gross gambling yield (GGY) of the black market, which will provides insight into the revenue generated by illegal operators. The UKGC has taken findings from similar studies conducted by regulators in the Netherlands and Sweden who have both made efforts to estimate player spend on black market websites after they found consumers spend more on unlicensed sites than on regulated platforms.

Player Spend At Illegal Casinos

A recent study commissioned by the Betting and Gaming Council (BGC) estimated that the UK’s black market gambling sector could be generating as much as £2.7 billion in bets annually.

To estimate the GGY, the UKGC is using web traffic data alongside information on average player spend. Between July 2018 and June 2019, data was collected from over 139,000 online gambling accounts managed by seven major UK operators. Based on this data, the Commission estimates that the average GGY per minute for online slot games is £0.32. This data is particularly helpful as a significant portion of black market gambling involves online slot machines.

However, the UKGC recognises that this method may not be fully accurate given that it doesn’t include the data of high-spending players who participate in other forms of gambling, such as sports betting.

Players at online betting sites that are not licenced by the UK Gambling Commission can often use cryptocurrencies to deposit, withdraw, and wager. The rise in Bitcoin casinos is another concern with the transfer of funds being relatively anonymous, and KYC checks often overlooked.

How The UKGC Will Identify Unlicensed Websites

The UKGC will monitor search traffic related to unlicensed gambling by using Google Trends and Similarweb’s keyword generation tools. This will allow them to identify popular search terms associated with illegal gambling platforms such as ‘non gamstop betting sites‘. These search terms are analysed, and the top five pages of Google results are examined to identify unlicensed operators.

The Commission has highlighted the importance of licensed operators helping with their study. Betting sites that are licenced by the UK Gambling Commission are encouraged to share relevant data that could help decrease illegal gambling sites.

Streaming platforms like Twitch and Kick, which attract large audiences, are being scrutinised for their involvement in driving traffic to unlicensed gambling sites. Many slots and casino streamers use these platforms to post videos of high-stakes gambling on illegal platforms. They are often paid by the non-licenced casinos to play and publish videos, which can encourage UK residents to venture away from licenced brands.

Initial findings of the study are set to be released in late spring 2025.