Gambling Commission Research Reveals Overlap in Licensed and Unlicensed UK Gambling Activity

The UK Gambling Commission has published research showing that many punters who repeatedly use unlicensed operators continue to gamble with licensed ones. This challenges assumptions long held by the regulator and much of the industry about black market dynamics.

The findings were unpacked on SBC News' iGaming Daily podcast, where host Charlie Horner was joined by SBC Media Editor Ted Menmuir and SBC News Editor Ted Orme-Claye to examine the implications for player protection.

The Commission analysed bank transactions from a sample of UK consumers, tracking 3,426 transactions across 179 individuals. Menmuir identified the headline result as the overlap, with 91% of those showing repeat unlicensed activity also gambling via licensed operators. This undercuts the view that black market use means abandoning the regulated market, a point operators have raised for years. Orme-Claye agreed the data does not entirely dismiss the pull of unlicensed sites.

Problem Gambling Concentration in Illegal Market

Orme-Claye drew attention to the risk profile. 45% of those scoring eight or more on the Problem Gambling Severity Index (PGSI) transacted with the illegal market, indicating problem gamblers form a core customer base for offshore firms. Some may be self-excluded players targeted by non-GamStop brands.

Limits of Data and Call for Motivation Research

The panel noted the small sample and methodological limitations but said the work remains valuable for relying on real transactions instead of surveys. They concluded that the next step is research into player motivations, as blocking payments alone will not address the underlying issue.