The UK Gambling Commission (UKGC) has published its latest industry report on the pressing issue of illegal online gambling. This is notably the final in a series of four such reports examining the various facets of the iGaming black market.

Quantifying a Hidden Activity Proved Difficult

Following reports on consumer awareness, engagement, and how to disrupt the sector, the UKGC has published its final report, examining the true size of the black market and the challenges of quantifying an activity “that is, by nature, hidden.”

Dubbed “Estimating the size of the illegal online gambling market,” the most recent report seeks to understand the difficulties related to measuring the size of the black market. The UKGC noted that reliable data is limited, forcing regulatory bodies to make certain assumptions to fill the gaps. As a result, confidence in any single estimate is “inherently constrained.”

The commission said that comparisons can be made with other illicit markets, such as the illegal tobacco trade, where it is difficult to make reliable estimates.

The UKGC Highlighted Key Findings

The UKGC noted that, regrettably, there is no single estimate of the size of the illegal online gambling market. However, the commission continues to gather evidence, seeking to better understand the mindset of those preferring to play with unlicensed operators and the tactics employed by offshore companies.

Among other things, the UKGC concluded that customer motivations to use illegal sites vary. Additionally, not all of them are aware that the sites they are playing with are illegal, pointing to an urgent need for greater awareness.

Additionally, the UKGC noted that not all illicit offerings hurt the legal market since some of the black market’s players are people who would be otherwise unable to play, such as self-excluded people.

The silver lining is that there is no evidence of continued growth in engagement with illegal websites in the UK. At the same time, the UKGC, together with other authorities, industry stakeholders, and international partners, is working on a range of disruption methods to inhibit the influence of the black market.

The UKGC noted that the war on illegal gambling should be a coordinated response, resulting from collaboration across agencies, industry stakeholders, digital platforms, and payment companies.

The Threat of Illegal Gaming Remains Great

Andrew Rhodes, the UKGC’s chief executive, highlighted the serious threat posed by the illegal online gambling sector, saying that it endangers both consumers and the integrity of the regulated industry.

Rhodes regretted that measuring the full scale of the black market is difficult, but said that he was pleased with the progress.

While measuring the full scale of the problem is complex, our understanding is growing — and so too is our ability to disrupt illegal operators. Our independent research has strengthened the evidence base, improved transparency, and underlined that progress depends on a collective effort across sectors.

The UKGC concluded that following the conclusion of the current series of research, the body will focus its program on research, data collection and enforcement activity. The regulator promised to provide further details in due time.