UKGC Report Highlights Challenges in Measuring the Illegal Online Gambling Market
Introduction to the UKGC’s Investigation
The UK Gambling Commission (UKGC) has released its latest industry report addressing the issue of illegal online gambling. This report is the final installment in a series of four, each examining different aspects of the black market within the iGaming sector.
Challenges in Measuring a Hidden Market
Earlier reports focused on consumer awareness, engagement, and strategies to disrupt illegal activities. This concluding report delves into the difficulties of estimating the true scale of the illegal online gambling market, a task complicated by the inherently concealed nature of such operations.
Named “Estimating the size of the illegal online gambling market,” the report outlines that limited reliable data forces regulators to make assumptions, which restricts certainty in any estimate. The UKGC likens these challenges to those faced in assessing other illicit markets, like the illegal tobacco trade, where accurate measurement is likewise problematic.
Key Insights from the UKGC
The report emphasizes that no definitive figure exists for the size of the illegal online gambling sector. Nevertheless, the UKGC is committed to collecting evidence to better understand why some consumers choose unlicensed operators and to uncover the methods used by offshore companies operating outside UK regulation.
The motivations for using illegal platforms are varied; some users are unaware that the sites they engage with operate unlawfully, highlighting a critical need for increased public awareness.
It was also noted that not all illegal gambling activities harm the regulated market. Certain users of black market services include individuals who would otherwise be unable to participate legally, such as those who have self-excluded from gambling.
The report offers a hopeful note, with no clear evidence showing a rise in illegal gambling participation within the UK. The UKGC continues to collaborate with other agencies, industry players, and international partners to develop and implement disruption techniques targeting illegal operations.
The commission stresses that combating illegal gambling requires coordinated efforts involving regulatory bodies, industry stakeholders, digital platforms, and payment service providers.
The Ongoing Threat of Illegal Gambling
Andrew Rhodes, the CEO of the UKGC, emphasized the significant risks posed by illegal online gambling, which threaten consumer safety and the integrity of the licensed market.
While acknowledging the difficulty in fully quantifying the size of the black market, Rhodes expressed satisfaction with the progress made.
“Although measuring the entire scope of the issue is complex, our understanding continues to improve, enhancing our capacity to disrupt illegal operators. Our independent research has strengthened the evidence base, increased transparency, and highlighted that success depends on collective action across multiple sectors.”
— Andrew Rhodes, CEO, UK Gambling Commission
Looking ahead, the UKGC plans to shift focus towards research, data gathering, and enforcement based on the insights gained from this series of studies. Further updates on their initiatives will be shared in due course.
