UK Gambling Commission study finds most repeat black market users also gamble with licensed operators

New research from the UK Gambling Commission suggests that people who repeatedly gamble with unlicensed operators in Britain often keep using licensed ones as well. The findings challenge assumptions held by the regulator and by large parts of the industry.

The Commission analysed bank transactions from a sample of UK consumers, covering 3,426 transactions across 179 individuals. The results were discussed on an episode of iGaming Daily, where host Charlie Horner was joined by SBC Media Editor Ted Menmuir and SBC News Editor Ted Orme-Claye.

Menmuir said the key finding was the overlap between the two markets: 91% of those with repeat detected unlicensed transactions also gambled with licensed operators. In his view, this undermines the idea that using the black market means leaving the regulated one behind, a concern operators have raised for years. Orme-Claye agreed, but said the data does not entirely disprove the industry argument that consumers are drawn towards unlicensed sites.

Orme-Claye also highlighted the risk profile of those involved. He said 45% of people scoring eight or more on the Problem Gambling Severity Index were transacting with the illegal market, which suggests that problem gamblers form a core customer base for offshore firms. He added that some of these may be self-excluded players targeted by so-called non-GamStop brands.

Both commentators acknowledged the small sample size and limitations in the Commission's methodology. Menmuir said the research remains valuable because it tracks real transactions rather than relying on survey responses.

The discussion concluded that the logical next step is research into why consumers use unlicensed operators. Orme-Claye said that blocking payments alone will not address the underlying problem, pointing to a need to understand motivations as part of efforts to improve player protection.