UK Gambling Commission Launches Comprehensive Study on the Black Market
In an era where online gambling is rapidly evolving, the UK Gambling Commission (UKGC) is taking significant strides to tackle the issue of unlicensed online gambling operations. With plans to release its first comprehensive study on the UK black market in late spring 2025, the UKGC aims to illuminate the scale and nature of illegal gambling activities that challenge both consumers and the regulated industry.
Understanding the Black Market Landscape
The UK’s shift toward this detailed investigation comes in light of the increasing accessibility of unlicensed gambling platforms. In a recent statement, the Gambling Commission emphasized that a deeper understanding of why and how consumers access these sites is crucial. By utilizing data, the Commission hopes to identify unlicensed websites and estimate their usage among Great Britain (GB) consumers. This foundational research is expected to enhance the UKGC’s ability to monitor and regulate the online gambling space effectively.
The research methodology promises to be robust, combining web traffic data with gambling behavior data to estimate the gross gambling yield (GGY) from the unlicensed market. This approach mirrors the practices of other European regulators who have similarly expressed concerns regarding the rising illegal gambling sector.
Estimating Player Spend on Illegal Sites
Central to the UKGC’s analysis will be the estimation of player spending on unlicensed platforms. To calculate GGY, the Commission will leverage website traffic data from unlicensed sites alongside data on average player spend, which has been derived from 139,152 online gambling accounts across seven leading operators in the UK. By analyzing this data collected from July 2018 to June 2019, the Commission estimates the average GGY per minute for online slots is £0.32.
However, it should be noted that this preliminary estimate does not account for high-spending consumers engaged in other gambling activities, such as sports betting. This gap indicates that the initial findings may still underrepresent the overall spending landscape.
Innovative Data Collection Strategies
The UKGC is employing cutting-edge methods to analyze online gambling trends. By utilizing Google Trends and Similarweb’s keyword generator, the regulator can identify popular search terms related to unlicensed sites. This involves analyzing the top five pages of Google results for each search term, extracting unlicensed betting websites from these results, and then collating data on web traffic and average visit duration.
This comprehensive data collection approach places the UKGC at the forefront of identifying trends and potential threats in the unregulated gaming market. As part of its ongoing research, the UKGC also recognizes the need to explore emerging channels that connect players to the black market, including social media platforms and encrypted messaging services.
Insights from European Regulators
The growing concern over illegal online gambling is not limited to the UK. Regulatory bodies in other countries, such as the Netherlands and Sweden, have flagged similar issues in their research. Reports from the Netherlands gambling regulator (KSA) and Sweden’s Spelinspektionen indicate that consumer spending on the black market may exceed spending on licensed operators. This phenomenon highlights a pressing issue: many players may be drawn to unregulated sites due to factors such as better odds or anonymity, raising serious concerns about player safety and integrity in gambling.
Reflecting on similar trends, the UKGC acknowledges that consumer spending habits can differ drastically between licensed and unlicensed sites. The Commission’s methodology will continue to evolve, including future assessments that take into account the time spent on unlicensed sites, even when no money is wagered.
Collaboration with Licensed Operators
In its efforts to combat the illegal gambling market, the UKGC is keen on fostering collaboration with licensed operators. The Commission has encouraged these operators to share relevant data, insights, and potential methodologies that could enhance the approach toward detection and regulation of unlicensed activities. This collaborative effort is vital as all stakeholders work together toward a common goal: to protect consumers and ensure a fair gambling environment.
Understanding the Scale of the Issue
An additional study commissioned by the Betting and Gaming Council (BGC) has brought further attention to the issue, estimating that the UK’s online black market is generating a staggering £2.7 billion in bets annually. BGC CEO Grainne Hurst characterized the findings as shocking, underscoring the "unnerving true scale of the growing, unsafe, unregulated gambling black market."
Conclusion
As the UK Gambling Commission gears up for the release of its groundbreaking study on the black market in late spring 2025, the insights gathered are expected to provide a crucial foundation for future regulatory action. With a concerted focus on data-driven analysis and collaboration with licensed operators, the UKGC is poised to take decisive steps in addressing the challenges posed by unlicensed online gambling. This proactive approach is essential not only for safeguarding consumers but also for preserving the integrity and sustainability of the regulated gambling industry in the UK.
