UKGC Releases First Illegal Gambling Report Addressing Several Issues

The United Kingdom Gambling Commission (UKGC) has taken a deep dive into the murky world of illegal gambling by commissioning its first comprehensive report. In conjunction with the business consultancy group Yonder Consulting, the UKGC conducted a multi-phase study which revealed some disturbing trends.

Over 2,000 people participated, and two additional 90-minute focus groups were arranged. The UKGC took a measured approach to the report by identifying the intentions of four key audience groups. Interestingly, there were no concrete demographic trends in terms of which illegal online casinos players preferred to use, although illegal casinos were more popular among men than women.

Skilled advocates, for example, who continually engage with illegal sites, were able to use currencies other than GBP to fund their gambling habit, and they wanted to explore new games. However, none of the respondents claimed they solely played at illegal gambling sites, insisting they were also using regulated operators.

What’s motivating these players?

As part of its qualitative research, there were broader patterns found among the four audience groups. It was suggested that young men between the ages of 18 and 24 were most likely to be affected by problem gambling.

Significantly, the ‘Social Explorers’ often discovered unregulated sites through social media platforms and search engine advertising before testing them out. Motivated by better odds and more lucrative promotions, this group, the report indicated, wanted to build stronger “social bonds” by sharing their experiences with family.

Avoiding stake limits and Know Your Customer (KYC) procedures were also fundamental factors driving players towards unregulated sites. Betting on football was the most popular activity, with online bingo, slot games, and virtual gaming.

Ignorance is bliss

Some players fell into the group labelled ‘Accidental Tourists’. These individuals accidentally stumbled upon sites by chance without knowing they were engaging with illegal online gambling brands.

Like the ‘Social Explorers’, they were motivated by better value odds or higher Return to Player (RTP) percentages for games. Gambling is therefore used as a tool to “enhance enjoyment of their hobbies”.

The ‘Accidental Tourists’ were also likely to come across illegal websites through search engines or recommendations. They were also able to source out these sites through sports podcasts or YouTube influencers, highlighting the growing trend of influencer marketing in the industry.

Calling for tougher action

The UKGC is fully aware of the dangers associated with gambling and they are looking at ongoing monitoring to keep track of player habits. In addition, the UKGC insists there should be greater scrutiny over payment methods in an industry where reports have highlighted that around £2.7 billion is staked each year in the UK with rogue operators.

Discussing the UKGC’s approach to black market gambling, Commission chief executive Andrew Rhodes said:

“The illegal online market is unsafe, unfair and criminal. That is why the Commission has invested heavily in this area in recent years.

“We are determined to protect customers and maintain confidence in the regulated sector by taking robust, evidence-led action. Since April 2024 we’ve seen a ten-fold increase in our disruption activity, and we intend to continue to work with a range of partners to build on this success.”

Moving the conversation forward

The next phase of the study is set to be completed by the end of the year. Within this segment of the survey, the UKGC will explore “knee-jerk” reactions to regulatory changes. It is believed that conducting further research, it is believed, will give the UKGC a fuller understanding of areas that it needs to tackle.