UK Gambling Commission Banking Data Study Finds Illegal Gambling Supplements Licensed Activity

The UK Gambling Commission has published a technical report that uses anonymised Open Banking transaction data to examine how consumers in Great Britain interact with unlicensed gambling operators. As reported by Focus Gaming News, the research shows no notable decline in legal gambling transactions after individuals are first detected using illegal operators. This indicates that illegal gambling functions as a supplement rather than a substitute for licensed activity.

The study links these transaction patterns to Problem Gambling Severity Index scores. Consumers who engage with illegal operators are more likely to fall into moderate-risk and problem gambling categories than those who use only licensed firms. The relative sizes of these PGSI categories are reversed compared with the broader population of licensed gamblers.

Postdoctoral Data Scientist Steven Murphy authored the report. Murphy noted that the unique cross-operator dataset allows linkage to survey results on harms in the context of actual financial activity. The regulator described the project as a powerful proof of concept for financial transaction data.

Research Limitations

The report acknowledges several caveats. Some transactions with unlicensed operators may go undetected. In addition the dataset, though large, is not nationally representative. These constraints limit the breadth of insight while still allowing meaningful observation of consumer behaviour.

Data Expansion and Regulatory Utility

Murphy stated that the work represents a meaningful contribution to the evidence base on illegal gambling that could not be realised from any other evidence source. The Commission plans to expand its use of financial transaction data. It remains open to collaborations with banks, payment providers and other stakeholders to support safe, fair and crime-free gambling.