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UKGC Publishes Landmark Report on Illegal Gambling
The UK Gambling Commission (UKGC) has released the first in a new, planned series of reports on the extent of illegal online gambling in Great Britain. This publication is a significant moment for the industry, as it provides a clear, official acknowledgement from the regulator that a black market is a genuine factor in the UK landscape. Crucially, the report is a clear call for the regulated industry to engage with the UKGC’s next phase of research, which will investigate whether "regulatory and operator practices" may inadvertently contribute to customers seeking out unregulated websites.
Regulator and Industry Practices Under Scrutiny
The regulated sector, which has long raised concerns over the black market through bodies like the Betting and Gaming Council (BGC), will find both vindication and a challenge in the report. While the UKGC confirms the existence of the illegal market—which CEO Andrew Rhodes calls "unsafe, unfair and criminal"—it is also questioning the actions of licensed companies. The Commission explicitly highlights financial vulnerability checks as an area where regulatory practice could influence a customer's decision to use the black market, a concern long voiced by operators.
Key areas of regulatory and operator practice the UKGC will investigate include: (1) the impact of financial vulnerability and affordability checks, (2) the effect of commercial restrictions placed on customer accounts, and (3) the effectiveness of current efforts to block black market access.
Motivations for Moving to the Illegal Market
The UKGC has identified several key factors that motivate customers to choose illegal sites over regulated, safer ones. Understanding these drivers is crucial for the regulated sector to compete effectively on player protection and product offering. Many of these motivations revolve around circumventing the very safety measures designed to protect the vulnerable.
The motivating factors identified by the UKGC include product diversity, better incentives, circumventing protection.
Next Steps: Evidence and Consumer Campaigns
The report is the first step in a broader strategy to build a robust evidence base. The UKGC states it needs a "deep and broad understanding" of how the illegal market operates before implementing effective countermeasures. Future research will use the Gambling Survey for Great Britain (GSGB) to gather widespread data. Furthermore, the Commission is evaluating the launch of a consumer-facing campaign to raise awareness, a necessary step given that many customers are reportedly unaware of the differences and risks associated with unregulated firms.
