The UK Gambling Commission has flagged a growing concern over the increased use of virtual private networks (VPNs), which complicates the measurement of illegal gambling activities. Following the introduction of the UK’s Online Safety Act, VPN usage has surged, raising challenges in accurately assessing online gambling activities. The commission, already adjusting for VPN interference, warned that its efforts to track illegal gambling are now facing even greater uncertainty.
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VPNs and the Black Market
VPNs are essential tools for online privacy, allowing users to mask their location and encrypt their data. While helpful, they also enable users to bypass digital restrictions. But in gambling, this presents a dilemma: with VPN usage on the rise, it’s harder for regulators to determine the true size of the black market. Melanie Ellis, a partner at Northbridge Law, highlighted the issue: “The major use of VPNs means that web traffic data is an unreliable way to assess the scale of the black market.”
James Baker from the Open Rights Group urged caution, noting that reduced visibility doesn’t automatically indicate an increase in illegal activities. “Policymakers should avoid assuming that activity they can no longer measure has grown simply because it has become harder to measure,” he stated.
Industry Reactions to VPN Usage
Industry voices diverge on the threat VPNs pose. Elizabeth Cronan of GeoComply noted that while VPNs are widely available, they don’t necessarily undermine regulated markets. “Modern geolocation technology is specifically designed to detect VPNs,” she said. However, Mike Venner from Advanced Compliance Technology argued that VPNs expose weaknesses in enforcement, as basic geolocation checks no longer suffice in combating circumvention. Bethan Lloyd, from Wiggin, pointed out that as VPN technology evolves, traditional geo-blocking methods struggle to keep up. Still, “VPN providers constantly adapt their technology—such as rotating IP addresses—faster than detection methods can keep pace,” she warned.
VPNs: A Red Herring?
Ismail Vali of Gaming Compliance International calls the focus on VPNs a “red herring,” arguing they aren’t central to accessing unlicensed gambling services. He emphasized that VPNs often degrade the gambling experience. “Latency means delay,” he explained. “If you’re live sports betting or playing slots with community features, that delay becomes a major issue.”
Vali believes the real problem lies in the availability of offshore sites, rather than VPNs themselves. “In virtually every country, users can access unlicensed gambling operators without needing a VPN,” he noted.
Implications Beyond Gambling
The debate over VPN usage extends into broader realms of digital regulation. The UK’s Online Safety Act has driven up VPN usage, further complicating traffic analysis for regulatory bodies beyond the gambling industry. Venner argued that the rise in VPN adoption highlights enforcement issues across various frameworks, including those for adult content. According to Cronan, a proposed consultation could require VPN providers to verify users’ ages, potentially pushing people towards riskier, unregulated proxies.
Regulatory Challenges and the Road Ahead
The burden of enforcement remains a contentious issue. Operators can implement geo-blocking and VPN detection measures, yet none are foolproof. “Ultimately, it’s not the job of licensed operators to police the black market,” Lloyd stated. Enforcement, Cronan emphasized, requires both operator compliance and regulatory authority. As VPNs continue to be used for both legitimate privacy protection and regulatory circumvention, the UK Gambling Commission faces a complex task. But adjusting regulations to a digital market where transparency can’t be guaranteed is key moving forward. The commission is expected to release further updates on their methodological adjustments later this year, possibly amid their annual review.
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.
