The British Gambling Commission has released its second report in a series examining the illegal gambling market in Great Britain. This analysis comes after the launch of the Gambling Commission’s Illegal Gambling Hub, which was introduced last month. The latest findings focus specifically on trends in consumer engagement with illegal gambling websites.
From the data collected so far, the commission has determined that there is no evidence of a sustained increase in illegal gambling activity. While there was a noted uptick in engagement with these sites between the summer and winter of 2024, this increase was temporary, and levels returned to their initial state shortly thereafter. As the study concluded, consumer interaction with illegal gambling platforms was roughly the same as when the period began.
Tim Livesley, head of the regulator’s data innovation hub, pointed out a common perception that the illegal gambling market is in constant growth. However, he emphasized that the data does not support this belief. “We are often told this market is constantly growing,” Livesley noted, “but sustained growth is not visible in our data.”
Despite these findings, Livesley was quick to clarify that the commission is not underestimating the threat posed by unlicensed gambling operations. He added, “This finding should not be taken to mean we don’t believe there is still a serious problem that we will continue to tackle. This market presents a risk to consumers, and we will use data to work harder and smarter to disrupt it.”
The report relies on data automatically collected over the last 15 months, focusing on illegal gambling websites accessed through search engine results and links on affiliate marketing websites. These platforms offer a mix of traditional gambling products, such as slots, casino games, and betting, alongside newer options like crypto casinos.
The commission acknowledges the challenges in accurately measuring engagement with illegal gambling. They consider the role of virtual private networks (VPNs), which complicate tracking efforts, and recognize that their methods may not fully capture all aspects of online illegal gambling, such as app-based platforms. The regulator intends to refine its data usage to better report trends, including enhancing the analysis of web traffic estimates to understand error margins.
Livesley elaborated on these challenges, stating, “Generating accurate and reliable estimates is challenging. When exploring an activity that is illegal and hidden, there are very few known facts.” He explained that due to the dynamic nature of the market, where websites frequently exit and enter the scene, maintaining a consistent analysis is difficult. “The websites that are used most frequently today are not the same as those which saw the highest traffic a few months ago,” he mentioned.
To address these challenges, the Gambling Commission plans to gather data over a more extended period. This will help determine whether observed fluctuations are seasonal or indicative of a long-term trend. Furthermore, the commission is open to collaborating with licensed operators to verify the accuracy of their estimates.
The commission intends to publish additional information regarding its data-driven efforts later this year, including further analysis of how disruption activities impact the illegal market and the challenges of estimating expenditure levels related to online illegal gambling. The upcoming publication will delve into enforcement efforts and the effects of targeted disruption.
While the Commission remains focused on mitigating the risks associated with illegal gambling, other perspectives highlight the difficulties in curbing such activities. Industry experts argue that the allure of unlicensed platforms lies in their often more competitive offerings compared to regulated sites. These include higher odds and a broader array of games, which continue to draw some consumers despite the risks.
Moreover, the rise of technology, particularly blockchain and cryptocurrencies, has introduced new complexities in regulating the gambling space. These innovations offer enhanced privacy features that attract users seeking anonymity, making it increasingly challenging for regulators to track and control illegal activities.
One potential solution suggested by some analysts is to focus on consumer education and awareness. By highlighting the risks and potential consequences of engaging with illegal gambling sites, regulators and industry stakeholders can deter users from turning to these platforms.
Ultimately, the conversation around illegal gambling is multifaceted. While the Gambling Commission’s report suggests no significant rise in engagement, the issue remains a significant concern for consumer protection and regulatory bodies. As the market evolves, so too must the strategies employed to safeguard consumers and maintain the integrity of the gambling industry in Great Britain.
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