Great Britain’s Gambling Commission has issued a call for greater awareness of black market websites after the first report into unlicensed activity revealed most consumers who gamble with these operators were unaware that they were illegal.
The “Illegal online gambling: Consumer awareness, drivers and motivations” report, the first in a series of studies, explores several concerns related to black market websites. These include what attracts consumers to these sites and who are the players most likely to gamble with illegal operators.
One of the key concerns flagged by the regulator is an apparent lack of awareness of illegal operators. The report found that most players had low awareness of unlicensed and illegal websites, while others said they did not know how to tell whether an operator held a licence.
However, there was a general consensus that consumers thought it important for websites to hold a licence. The report also found that people used illegal sites to supplement their gambling on licensed websites. No single respondent said they gambled only with illegal sites.
Reasons vary for using black market websites
As to why users turn to unlicensed sites, the Commission flagged several reasons. Among these was access to a wider range of games and content than what is available on approved websites. Some consumers also said they found better odds on unlicensed sites and could gamble with other currencies, including certain cryptocurrency.
As one worry for the Commission, some consumers said they saw illegal sites as a way to avoid safer gambling measures. Unlicensed websites are not subject to the same requirements as approved operators, meaning players do not need to be subject to measures such as age and ID verification and deposit limits.
There was also concern over how players who were self-excluded used unlicensed websites as a way to resume gambling before their period of self-exclusion had ended. As with other safer gambling measures, unlicensed sites do not need to integrate with the self-exclusion scheme in Britain.
Self-excluded players returning to gambling
People who had self-excluded were identified as one of four major consumer groups that tend to gamble with black market sites. The report also highlighted that “skilled players” sometimes knowingly gamble with these operators in order to use currencies other than the British pound.
Another group was titled “social explorers”, referring to those who find the illegal sites on social media or forums or through friends. These players often test the websites before making larger spends to help minimise risks.
The final group, which tied in with the awareness concern, was identified as “accidental tourists”. These users found the illegal websites by accident and therefore engaged with the illegal market unknowingly.
Younger men aged between 18 and 24 were most likely to gamble with illegal websites. The report also stated that those with a Problem Gambling Severity Index of eight or higher would gamble the most with these operators.
Online football betting, slots, bingo and virtual games were among the most popular forms of gambling on illegal sites.
Commission calls for action over awareness
The regulator noted several limitations with the results. These included the report’s reliance on self-reporting of player behaviour throughout the study. It also noted how only people who had gambled in the past four weeks, excluding the National Lottery, were surveyed.
However, the Gambling Commission was still able to draw several conclusions from the first report in the series. Its top recommendation was for improved consumer awareness and education to help people distinguish between licensed and unlicensed sites, as well as to understand the risks of using black market sites.
It also suggested targeted interventions for the specific audience groups, as the motivations for play differ among them. Related to this was a recommendation for campaigns to help shift consumer behaviour and reduce risk.
The regulator also said there should be greater regulatory scrutiny of payment methods, marketing, affiliate practices and cross-border advertising and content to reduce access to unlicensed sites. In addition, the commission urged ongoing monitoring to keep track of play rates.
“The illegal online market is unsafe, unfair and criminal,” Commission chief executive Andrew Rhodes said. “That is why the Commission has invested heavily in this area in recent years.
“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.
“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.”
The report is one of several studies that Great Britain’s regulator is undertaking to better understand the online gambling black market.