UKGC kicks off 4-part report on illegal gambling

The Gambling Commission has released the first in a series of reports into illegal casinos. Using a combination of surveys, interviews, and focus groups, they have assembled data that reflects the interactions people have with these online sites. 

Investigation into black market gambling

The illegal gambling market in the UK results in billions of pounds being lost every year. The UKGC is using the UK as a case study to determine why people gamble at illegal sites. 

The report is being led by Andrew Rhodes, the Chief Executive of the Gambling Commission, who describes the market as “unsafe, unfair, and criminal.” 

However, to make changes to this, the commission wants to get a “deep and broad understanding of how it operates”, which is what led to this research. 

The different profiles used

The first report used multiple methods of research from their audience to get an understanding of consumer engagement. They decided on 4 different types of audiences who engage with these sites in different ways:  

1. Self-excluders: These people have chosen to self-exclude from gambling sites using GAMSTOP or other blocking software. 

2. Skilled advocates: Individuals who knowingly engage with illegal sites with the desire to gain more skills or use a variety of games. 

3. Social explorers: They have discovered the sites through social networking and often try different games before committing to limit the risk. 

4. Accidental tourists: This group has come across the illegal sites by accident and aren’t knowingly using illegal sites. 

Key points from the first report

There’s a lot to take from the Gambling Commission research. 

Here are the main findings: 

• Consumers mostly use these illegal sites to supplement their activity on regulated websites. 

• Using both sites means they can find better odds, games that are normally unavailable, higher spending limits and more relaxed KYC checks. 

• Younger men tend to use these illegal gambling sites more than any other group, and are more likely to suffer from gambling problems. 

• The most common illegal sites feature: sports betting, online bingo, slot games and virtual gaming. 

What the UKGC uncovered about illegal online gambling use

Evidence suggests that some people don’t even know they use illegal sites. Several respondents claimed they hadn’t used illegal sites, but responses to other questions indicated otherwise. 

People who took part in the surveys agreed that online casinos need to be licensed, implying that the issue is that people aren’t aware of how to find a safe casino.

Once people have already used illegal sites, the lure of better offers or different games becomes harder for them to resist. For some, the ability to sidetrack self-exclusion appeals. 

As people aren’t using illegal sites on purpose, there is hope for a decrease in the use of black market sites. 

It will be interesting to see what else the next stages of this report unveil and what the Commission plans to do to decrease the number of players on illegal gambling sites.

Casinos that are licensed by the United Kingdom Gambling Commission (UKGC) or the Malta Gaming Authority (MGA) are the safest casinos around.

What are the UKGC investigating next?

The next report will focus on trends within the gambling market and look into the engagement data. 

The third and fourth reports will examine enforcement activity and the challenges of estimating the size of the illegal gambling market. 

The Gambling Commission are also “considering the benefits of developing a consumer-facing campaign”. This will help them raise awareness in targeted groups of people.