UKGC admits struggles in measuring illegal online gambling's true scale
The UK Gambling Commission (UKGC) has completed a major research project into illegal online gambling. Despite extensive efforts, the regulator admits it still faces challenges in measuring the true size of the black market. Officials warn that unlicensed gambling continues to pose risks to consumers and the regulated industry. The UKGC tested three approaches to track illegal gambling: the dwell time method, the channelisation method, and a survey-based approach. Due to unreliable survey responses, only the first two were pursued. The dwell time analysis examined 117 players who used unlicensed sites, with sports betting being the most common activity at 34%.
The channelisation method relied on web traffic and app usage data but struggled with gaps in tracking app-based engagement. Both techniques provided useful insights but failed to deliver a definitive estimate of the illegal market’s scale. The regulator acknowledged that data limitations and necessary assumptions weakened the reliability of any single figure.
Director of enforcement and intelligence John Pierce confirmed the UKGC is strengthening its intelligence capabilities. Partnerships across financial, technological, and regulatory sectors will support ongoing enforcement. Meanwhile, Chief Executive Andrew Rhodes stressed that illegal gambling remains a serious threat, requiring coordinated action from all sectors.
The Commission will continue monitoring trends, including VPN usage and searches for unlicensed operators. Updated data from licensed operators will also inform revised engagement strategies. Research so far has improved understanding of how illegal sites operate and why consumers use them, with no evidence of sustained growth in black market activity where data exists. The UKGC’s findings highlight the persistent difficulties in quantifying illegal online gambling. While progress has been made, the regulator will maintain research and enforcement efforts. Future work will depend on collaboration across industries to tackle the ongoing risks posed by unlicensed operators.
