The UK Gambling Commission unveiled a comprehensive strategy to disrupt unlicensed online operators targeting British consumers today (21 October).
According to CEO Andrew Rhodes, tackling the black market is a top priority for the Commission, with the regulator dedicating significant resources and expertise to the effort.
The size and potential growth of the UK gambling black market has become a big topic in recent years following accusations some of the country’s gambling reforms, especially the controversial affordability checks, will prove a boon to illegal operators.
The Gambling Commission CEO said: “The Illegal market is bad from a human point of view – as it poses a risk to consumers, especially the vulnerable. It is also unlikely to operate in a way that is fair or safe. It is also a concern from an economic point of view – as it pays no tax and undercuts legitimate business.”
The Commission’s multi-pronged approach leverages data analytics, enhanced partnerships, and consumer research to identify and shut down illegal gambling websites.
Over the past year, the regulator has issued over 750 cease-and-desist orders, resulting in the removal of 50,000 URLs from search engine results, a tenfold increase compared to the previous 12-month period.
Rhodes said: “Increased use of data analytics is at the heart of our corporate strategy. We are building our capacity to use data to make regulation more effective – and we are already deploying this in our work to tackle unlicensed gambling.”
UKGC to estimate black market GGY
The Commission’s latest methodology paper outlines how it uses web traffic data and gambling behaviour analytics to estimate the gross gambling yield (GGY) of the online black market.
While acknowledging the limitations of this model, Rhodes emphasised that it provides valuable insights into the dynamics and trends within the unlicensed space.
Rhodes said: “The work is still in progress, with the qualitative phase completed. We will be using the findings from this phase to inform the next phase of the work, with all the findings due to be published in 2025.”
The research also aimed to shed light on consumer motivations for accessing illegal gambling sites, with a focus on vulnerable groups such as self-excluded individuals and those seeking to avoid identity verification.
The Commission plans to build on these insights through its ongoing “Consumer Voice” program, as well as by adding relevant questions to the Gambling Survey for Great Britain.
Looking ahead, the Commission intends to expand its partnerships beyond Google, establishing a working relationship with Microsoft to replicate the successful URL referral process across Bing, Yahoo Finance, and other Microsoft-powered search engines.
Rhodes added: “Additional efforts will include test purchasing activities and ongoing contact with payment providers to detect and prevent illegal transactions.
“The Commission will also continue to engage with external partners, such as law enforcement agencies, the Police Intellectual Property Crime Unit, and HMRC, to strengthen its efforts.”
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