UKGC Establishes Hub to Confront Unlicensed Gambling

UKGC Establishes Hub to Confront Unlicensed Gambling

The British Gambling Commission has launched a new initiative designed to bring greater clarity to the way unlicensed gambling is monitored and addressed in the UK. Called the Illegal Gambling Hub, the project consolidates research findings, enforcement activity, and advice on identifying operators that fall outside the regulatory system. The move comes at a time when the regulator is intensifying its study of the illegal market and how consumers are drawn to unlicensed websites.

The launch coincided with the publication of the first in a series of detailed reports that aim to map the contours of illegal online gambling in Great Britain. This initial report examines consumer motivations, demographic profiles, and the routes by which individuals encounter unlicensed sites. Later reports will expand on these findings, focusing on engagement levels, enforcement actions, and the challenges involved in estimating the size and scope of the unregulated market.

The report highlights a range of reasons why people turn to unlicensed operators. Many remain active in the regulated market but use illegal platforms alongside it. For some, the attraction lies in products that are not available through licensed operators, such as specialized betting markets, alternative payment options, or unique game formats. Others arrive at these sites less deliberately, often through search engine results, online forums, or recommendations made on social media.

Ben Haden, the Commission’s director of research and statistics, noted that participation in the illegal sector is not evenly distributed. Higher engagement is found among younger men, particularly those aged 18 to 24, as well as among people who gamble more frequently and those scoring higher on the Problem Gambling Severity Index. These groups are more likely to combine the use of licensed operators with unlicensed sites, creating a layered pattern of behaviour that the regulator is seeking to understand better.

A significant concern raised in the report is the extent to which unlicensed operators target people who have attempted to limit their gambling by registering with self-exclusion services such as GAMSTOP. With over half a million individuals currently signed up, the pool of people seeking to restrict their access is substantial. According to the research, many of these consumers are being targeted directly with advertising by unlicensed operators, offering them ways to bypass their restrictions.

This practice raises questions about the risks posed to those who have already identified gambling as a source of harm in their lives. Unlike regulated operators, unlicensed sites are not subject to deposit limits, affordability checks, or consumer protection requirements. For those already vulnerable, this lack of safeguards can compound the difficulties they face.

The report clearly states that not all engagement with unlicensed operators can be directly linked to harm. Some consumers actively seek out these platforms because they perceive them as offering better odds, faster withdrawals, or more flexible use of currencies such as cryptocurrency. Others, however, have little awareness of licensing rules. Many assume that a site visible through standard search engines or recommended in an online forum must be legitimate, when in fact it may operate outside of any regulatory oversight.

The Commission’s earlier work on consumer trust had already demonstrated that regulation is a significant factor for many people when choosing where to gamble. Yet, the current research highlights a contradiction: while consumers claim to value oversight and accountability, some are still willing to engage with unlicensed sites. Understanding this tension is one of the regulator’s priorities in the future.

The Gambling Commission has outlined plans for further research aimed at examining the factors that drive consumers into the illegal market. It intends to look closely at whether regulatory interventions, such as account restrictions or affordability checks, may inadvertently push some people toward less secure options. Industry practices will also be scrutinised to assess whether operator-led decisions could have unintended consequences that fuel demand for unlicensed services.

Alongside this research, the Commission’s Illegal Markets Team will continue efforts to disrupt unlicensed activity. Case studies and enforcement updates will form a key part of the new Illegal Gambling Hub, providing transparency on the regulator’s work while also offering insights into trends across the sector.