Gambling Commission report on illegal gambling in UK

The Gambling Commission, the United Kingdom’s national regulator for gambling activities, has released its first detailed report examining the scope and characteristics of the illegal gambling market in Britain. Conducted in partnership with Yonder Consulting, this multi-phase study sheds light on a complex and often misunderstood area of the gambling industry.

The findings highlight a crucial issue: many members of the public are unaware whether they are engaging with regulated platforms licensed in Britain or with unregulated, potentially illegal operators. The research offers valuable insights into player motivations, demographics, and behaviors, while also providing a framework for future education and regulatory initiatives.

The objectives of the study

The Commission’s study was designed to answer a fundamental question: who is using illegal gambling websites in the UK, and for what reasons? The regulator sought to identify not only player awareness levels but also the circumstances under which individuals engage with these platforms.

This was not a simple survey of player habits. Instead, it was a comprehensive analysis that combined quantitative and qualitative methods. More than 2,000 individuals were interviewed through structured surveys, supplemented by two extended focus groups lasting 90 minutes each, and ten one-hour in-depth interviews with selected participants.

By triangulating data across these different sources, the Commission was able to develop a nuanced picture of the market and the types of individuals who interact with illegal platforms.

The four categories of players

The study identified four distinct groups of individuals engaging with illegal gambling websites. Each group is defined by specific behaviors, levels of awareness, and motivations.

Self-excluders

This group consists of individuals who have previously self-excluded from regulated gambling platforms under schemes such as GAMSTOP. These individuals intentionally seek out unregulated websites in order to bypass restrictions they have imposed on themselves.

Skilled advocates

These are players who knowingly pursue unregulated operators. Their motivations include experimenting with digital currencies, testing new products, or accessing gambling features unavailable on regulated sites. Skilled Advocates often see themselves as informed and deliberate in their choices.

Social explorers

This group discovers illegal websites through online communities, friends, or social media networks. Their involvement is often the result of curiosity or peer influence rather than a deliberate decision to seek out illegal operators.

Accidental tourists

Perhaps the most striking group, these individuals are unaware they are gambling on unregulated platforms. They believe they are using legitimate services but, in reality, are engaging with operators that do not hold a licence from the Gambling Commission.

As the report notes: “These audiences have varying awareness levels of engagement with illegal websites, different entry pathways into the websites, and motivations for using them.”

Why players use unregulated gambling sites

The study highlights that motivations for engaging with illegal websites vary widely across the identified groups. Among the most frequently mentioned factors were:

• Access to promotions and bonuses perceived as more attractive than those offered by licensed operators
• The desire to play games unavailable in the UK market, particularly certain slot or bingo formats
• Avoiding stake or spending limits imposed under British regulations
• Lack of mandatory identity checks, known as KYC (Know Your Customer) procedures
• Alternative payment methods, including cryptocurrencies

It is notable that many participants did not exclusively use illegal platforms. Instead, they engaged with both regulated and unregulated sites, suggesting that convenience, game choice, or promotional offers often dictated their behavior.

Popular gambling products in the illegal market

The research also examined which gambling products were most commonly sought on unregulated websites. Betting on football emerged as one of the most popular activities, reflecting football’s status as Britain’s most widely followed sport.

Surprisingly, online bingo ranked highly as a motivating factor. Despite being a long-established and regulated activity in the UK, players often turned to unregulated sites in search of alternative bingo formats.

Other popular products included:

• Online fruit and slot games
• Virtual gaming experiences
• Various niche games not available under UK licensing rules

This suggests that demand for certain formats and innovations is not always being met within the regulated market.

Lack of public awareness

Perhaps the most significant finding is the general lack of public understanding about illegal gambling websites. Many players are unable to distinguish between regulated and unregulated operators.

As the report observed: “Respondents showed low levels of awareness of the illegal online market, highlighted by some reporting that they had not used illegal websites whilst their responses to other questions indicated otherwise, and vice versa.”

In some cases, players mistakenly identified licensed and regulated operators as illegal, while failing to recognize genuine unregulated sites. This confusion underscores the need for clearer communication, consumer education, and public awareness campaigns.

Demographics of illegal gambling

Contrary to expectations, the study did not identify strong demographic patterns distinguishing users of regulated and unregulated websites. Illegal gambling platforms appear to attract a broad cross-section of society.

The only clear trend was gender-related: both legal and illegal gambling platforms were found to be more popular among men than women. Beyond this, there were no significant differences linked to age, income level, or educational background.

Role of influencer marketing

One of the areas the Gambling Commission intends to explore further is the role of influencer marketing. Social media personalities and online communities often play a role in directing players towards unregulated sites, sometimes without making clear whether those platforms are licensed.

The Commission has confirmed it will investigate how marketing tactics, sponsorships, and endorsements contribute to player decisions, especially among younger demographics who consume most of their information through digital channels.

The future phases of research

The report published represents only the first phase of a broader research project. The Commission has already announced that the next phase, scheduled for completion before the end of 2025, will examine “knee-jerk” reactions to regulatory changes.

This will include how players respond when new restrictions, such as stake limits or advertising bans, are introduced. The Commission aims to understand whether such changes drive more players toward unregulated sites and how risks can be mitigated.

Broader implications for regulation

The findings carry significant implications for policymakers, operators, and consumer protection advocates. On one hand, the existence of illegal operators highlights the need for ongoing enforcement and international cooperation. On the other hand, the motivations identified—such as demand for certain products or payment methods—raise questions about whether current regulations fully address consumer expectations.

Balancing consumer protection with consumer demand will be an ongoing challenge for the Commission. The study provides a framework for addressing these concerns, ensuring that future policies are informed by empirical evidence rather than assumptions.

Conclusion

The Gambling Commission’s first report into the illegal online gambling market in Britain provides critical insights into a complex issue. While many players remain unaware of whether they are gambling with licensed or unlicensed operators, the motivations identified in the study reveal a mixture of curiosity, convenience, and deliberate intent.

By categorizing players into distinct groups and analyzing their behaviors, the Commission now has a roadmap for targeted education, enforcement, and regulatory development. As future phases of research unfold, the regulator will be better positioned to address the challenges of illegal gambling while safeguarding consumers in an increasingly digital environment.

FAQs

What is the Gambling Commission’s role?
The Gambling Commission regulates all commercial gambling in Great Britain, ensuring operators meet licensing requirements and consumer protection standards.

Why did the Commission conduct this study?
The study aimed to understand who is using illegal gambling websites, why they are doing so, and how this impacts consumer protection.

How many people were involved in the study?
Over 2,000 people participated through surveys, focus groups, and in-depth interviews.

What are the four groups of players identified?
They are Self-excluders, Skilled Advocates, Social Explorers, and Accidental Tourists.

What motivates people to use unregulated sites?
Common motivations include better promotions, access to unavailable games, lack of spending limits, and use of alternative payment methods.

Which gambling products are most popular on illegal sites?
Football betting, online bingo, fruit and slot games, and virtual gaming were the most frequently mentioned.

Do players realize they are using illegal sites?
Many do not. A significant number of players cannot distinguish between licensed and unlicensed operators.

Are there demographic differences in illegal gambling?
The only notable trend is that men are more likely than women to use both legal and illegal gambling platforms.

What role does influencer marketing play?
Influencer marketing may drive players toward unregulated platforms, and the Commission plans to study this further.

What comes next in the research?
The next phase, expected by late 2025, will analyze how players react to regulatory changes, including whether such changes increase use of unregulated sites.