UKGC Study Shows Illegal Site Users Seven Times More Likely to Experience Problem Gambling
The UKGC reports gamblers on illegal UK sites are seven times more likely to face problem gambling than the 6% on legal sites. The 2018-2026 study of 157.2 million transactions found 91% of illegal users also bet on licensed platforms concurrently. It stops short of causation claims but notes tracking issues with conventional payments and crypto.
SCCG Take — Regulators need to examine why licensed markets do not fully deter parallel illegal use. Operators should anticipate continued unlicensed competition and support targeted enforcement.
The UK Gambling Commission has found that gamblers engaging with illegal websites in the United Kingdom are seven times more likely to experience problem gambling compared to 6% of those who visit legal websites. The regulator reached this conclusion through research using the Problem Gambling Severity Index (PGSI).
The study examined banking transactions recorded between July 2018 and July 2026, covering 157.2 million transactions and estimating 38,000 individuals. It stopped short of claiming that illegal gambling directly causes greater overall harm. As first reported by GamblingNews, the data instead shows these sites are used alongside licensed operators.
Overlap Between Illegal and Licensed Gambling
91% of those visiting illegal gambling websites also placed wagers with licensed companies. Individuals did not stop gambling on regulated platforms. The UKGC identified 122 individuals who transacted with illegal sites, with deposits remaining stable afterward. Around 3,426 transactions involved gambling among 179 individuals.
Difficulties Tracing Illegal Activity
The research highlighted challenges in linking specific transactions to illegal operators, relying on transaction codes for estimates. These limitations grow with cryptocurrency use. The findings offer insight into consumer patterns and will inform public policy as the illegal market threat increases.
The UKGC's work raises questions about why parallel use occurs despite available licensed options, pointing to areas for improved enforcement and understanding.
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