The United Kingdom’s Gambling Commission (UKGC) has unveiled its second report on the state of the illegal gambling market in Great Britain, revealing that there is no consistent upward trend in activity, despite a noticeable increase in the latter half of 2024. This report, part of an ongoing series, relies on data automatically gathered over a 15-month period, scrutinizing illegal gambling websites that consumers can access through search engines and affiliate marketing channels. These sites offer a variety of gambling products, spanning traditional options like slots, casino games, and sports betting, along with newer formats such as crypto casinos.
Tim Livesley, who leads the Gambling Commission’s Data Innovation Hub, remarked that while the illegal gambling market is often portrayed as perpetually expanding, with numerous claims made regarding what drives its growth, the UKGC’s findings do not support the notion of sustained growth. He highlighted that this lack of evidence does not imply that the regulator is downplaying the inherent risks of unlicensed gambling. Livesley clarified that even though the findings are suggestive rather than definitive, they should not be seen as minimizing the issue. The illegal market still poses a significant threat to consumers, and the UKGC is determined to leverage data-driven strategies to more effectively counter this threat.
However, the UKGC acknowledges that generating accurate and reliable estimates of the illegal gambling market remains profoundly challenging. In a blog post accompanying the report, the regulator pointed out that the clandestine nature of illegal activities severely limits verifiable data. The commission has built its estimates on the most reliable data available, being transparent about the associated margins of error and the inherent caveats.
An additional complication in assessing trends within this market is its highly fluid nature. Websites continuously enter and exit the scene, leading to a scenario where platforms that are popular today may not have been prominent just a few months earlier. This continuous turnover, partially driven by enforcement actions and disruption efforts, complicates the task of establishing historical trends since the dataset is in constant flux.
The UKGC has committed to enhancing its data usage to improve trend reporting within the illegal gambling market. This will involve deeper analytical dives to more accurately understand the margins of error in web traffic estimates. The commission has expressed interest in working with licensed operators to validate the accuracy of these estimates. Furthermore, it acknowledges the necessity to collect data over extended periods to discern whether observed fluctuations are due to seasonal variations or indicative of longer-term trends.
In the industry context, the gambling sector in the UK has seen significant regulatory changes in recent years. The introduction of stricter regulations has been aimed at ensuring consumer protection and maintaining market integrity. Licensed operators are under increased scrutiny to comply with these regulations, which has been a push factor for some consumers to explore unlicensed alternatives that promise fewer restrictions and potentially higher returns.
A spokesperson familiar with the market dynamics suggested that while illegal sites may appear attractive due to these factors, the inherent risks are considerably higher. The lack of regulatory oversight means that consumers are more vulnerable to fraud and other unethical practices. The spokesperson emphasized that, without the safety nets provided by regulated entities, consumers should exercise extreme caution.
Conversely, some industry analysts argue that the focus on illegal gambling might overshadow the broader issues facing the sector. They point out that while illegal operations indeed pose risks, they are part of a more comprehensive set of challenges that include responsible gambling measures and the sector’s adaptation to technological advancements. The debate continues as to where regulatory energies should be concentrated to yield the most significant benefit for consumer safety and market health.
The UKGC’s report illustrates a complex landscape where illegal gambling exists but does not seem to be on an unstoppable growth trajectory. The commission’s commitment to refining its data methodologies and engaging with industry partners could prove crucial in understanding and eventually curbing the illegal market. As the regulatory body enhances its approach, the broader conversation within the industry will likely continue to evolve, balancing the need for stringent oversight with the realities of a rapidly changing market environment.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
