Who gambles on Britain’s black market sites? UK regulator reports
The Gambling Commission has released new research shedding light on why people turn to unlicensed gambling websites, identifying four distinct groups of players who use them and the motivations behind their choices.
Four faces of the illegal market
The report, Illegal online gambling: consumer awareness, drivers and motivations, is the first in a series examining Britain’s black market for online betting. Conducted with Yonder Consulting, it draws on surveys, interviews and focus groups with gamblers who had recently played online.
The research found four types of users. “Self-excluders” are people who had deliberately blocked themselves from licensed gambling sites but continued playing on unregulated ones. As one woman in her 50s told researchers: “I didn’t care who I was gambling with, I just wanted somewhere where I could play slots.”
“Skilled advocates” are enthusiasts who deliberately seek out unlicensed sites to experiment with new games, cryptocurrencies or different odds. One man in his 20s explained: “I like to follow the conversation and see what people are recommending on Reddit. You never know what new thing someone might find to try.”
“Social explorers” typically come across these platforms through friends, family or online groups. As one participant put it: “I’m okay with using these sites. As long as I know they work and I know my friends wouldn’t recommend a site if they hadn’t tried it first.”
Finally, “accidental tourists” stumble onto such websites without realising they are illegal. A man in his late 50s said: “You can bet on more sports on these sites, like games in the US. For UK games, you can get better odds betting with a foreign site.” Another admitted: “I didn’t realise these sites might be unlicensed. I didn’t even think about their being UK based or otherwise.”
Motivations and risks
The Commission’s research suggests that most people do not gamble exclusively on illegal platforms but use them alongside regulated sites. Key drivers include “finding better odds and offers, wanting to play games that are unavailable in Great Britain, ability to use alternative payment methods (that is, not GBP), avoiding stake or spend limits, and lower barriers to entry such as minimal age or ID verification processes”.
But many gamblers are not aware of the risks. Respondents often struggled to tell the difference between legal and illegal operators, sometimes naming licensed companies when asked to identify unlawful ones. This mismatch, the Commission warned, shows “a disconnect… between the perceived importance of operators being licensed, and their understanding of whether or not operators hold this licence, and how this can be verified”.
The Chief Executive of the Commission, Andrew Rhodes, underlined the dangers: “The illegal online market is unsafe, unfair and criminal – that is why the Commission has invested heavily in this area in recent years.” He added: “To be even more effective in combatting the illegal market it’s vital that we have both a deep and broad understanding of how it operates, and this insight is a crucial step in building that understanding in a very complex area to research.”
A ten-fold increase in disruption
The regulator says it has already stepped up enforcement. Rhodes said: “We are determined to protect consumers 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 wide range of partners to build on this success.”
Alongside the report, the Commission launched a new Illegal Gambling Hub bringing together research, enforcement updates and guidance on spotting unlicensed websites.
Future instalments of the research will cover “engagement data and trends,” detail the work of its Illegal Markets Team, and assess “the challenges of estimating the size of the illegal online market in Great Britain.”
Evidence gaps remain
The Commission admits there are still unanswered questions. Because illegal gambling is hidden and many players do not realise the sites they use are unlawful, robust data is hard to obtain. The report warns: “Consumer-reported intentions often diverge from actual behaviour… therefore, consumers’ reported preferences in research should be treated with caution and validated against real-world actions.”
A further phase of the project is planned using the Gambling Survey for Great Britain, which will aim to track long-term trends. The Commission also said it is considering a public campaign to warn targeted groups of the risks of using unlicensed operators.
A growing concern
International studies show similar patterns, with younger men and higher-spending players most likely to engage with illegal markets. Like in Britain, many are attracted by games or products unavailable under local rules, as well as payment flexibility.
The Commission said its goal is to continue building evidence and to “understand better the areas of this issue which require regulatory action”.
Rhodes summed up the challenge: “We are determined to protect consumers and maintain confidence in the regulated sector.”
