Spotlight on the Underground Market in the UK: Recent Study by UKGC
The UK Gambling Commission (UKGC) to Unveil Black Market Gambling Study in 2025
The UK Gambling Commission (UKGC) is preparing to reveal its first extensive study on the unregulated gambling sector in the UK, scheduled for spring 2025. The research aims to fortify the monitoring of illicit online gambling offers.
The study aims to identify unauthorized gambling sites by scrutinizing web traffic and gambling behavior data, and estimate their usage by British consumers. Additionally, it aims to provide a more precise figure on the financial magnitude of the black market, estimated to be approximately €3.24 billion in September 2024 [Source]. This will be achieved by tracking the spending of users on these unlicensed sites.
By gaining a better comprehension of the motivations and methods behind which consumers access unauthorized gambling websites, we can pinpoint ways to utilize data to detect unlicensed sites and gauge their usage within the UK consumer population.—Gambling Commission, Gambling Commission**
Persistent Disruption and Data Collection Key Strategy
In a blog post [Source], Andrew Rhodes, the CEO of the UKGC, underscored that the commission's study also aims to deter gambling from becoming a haven for crime. The black market poses a threat to consumers, particularly vulnerable players, and negatively impacts the economy since illegal entities evade taxes and often undercut legal competitors. Consequently, persistent disruption is crucial, such as deleting URLs from search outcomes or blocking payments.
The black market is detrimental from a human perspective because it compromises consumer safety. It's unlikely to operate in a fair or safe environment. Economically, it's questionable because it fails to pay taxes and undermines legitimate businesses.—Andrew Rhodes, CEO of the UKGC, Gambling Commission**
Moreover, Rhodes highlighted the necessity of balancing the regulation of the legitimate gambling market. Over-regulation may lead problem gamblers to turn to illegal providers, thereby going off the radar of the government and other organizations. Research has shown that numerous users of unlicensed sites were previously denied services by regulated providers or soughtproducts not available in the legal market. Nevertheless, targeted regulations are imperative. Collaboration with payment providers, search engines, and international regulatory bodies is essential for these initiatives.
Social Media as Future Focus
The UKGC plans to zero in on potential pathways through which players may initially access illicit sites in future investigations. These commonly include encrypted messaging apps such as Telegram and WhatsApp, as well as streaming platforms like Twitch.
The Perilous Cycle of Illegal Gambling and Addiction
Illegal Gambling Offers Are Particularly Dangerous
Illegal gambling offers are particularly hazardous, as they generally do not include safeguards like deposit limits or self-exclusion options. Users on these platforms risk developing compulsive gambling habits hastily, as protective measures found in regulated gambling to aid addicts are absent. The lack of control over withdrawals, transparency, and gambling addiction prevention can stealthily lead users into dependence. The anonymity offered by illegal platforms is especially precarious, as it amplifies the risk of loss of control and compulsive gambling.—Gambling Commission, 2023 Addiction Yearbook**
Collaboration With Legal Providers Necessary to Combat Such Channels
To combat such platforms, collaboration with legal providers is essential. They should be authorized to share relevant data with the UKGC.
The Battle Against Illegal Gambling Nears
In the UK, the fight against illegal gambling and gambling addiction has been ongoing for a considerable time. Currently, approximately 1.65 million children in the UK live in gambling-addicted households. As a result, Labour MP Alex Sobel urged the public broadcaster Channel 4 to halt gambling advertising. A code of conduct for partnership with sports betting sponsors has been established within the Premier League.
The recently implemented credit card ban for gambling has shown little impact on users with moderate to severe gambling problems, while primarily assisting those with lower addiction problems. The efficacy of alternative approaches is demonstrated by an example from Switzerland, where gambling bans appear to have a positive effect on gambling addiction.
The study conducted by the UK Gambling Commission (UKGC) could potentially expand its scope to investigate unauthorized online casinos in Germany, given its focus on identifying and combating illicit gambling activities.
Collaboration with international regulatory bodies, such as those in Germany, would be crucial for the UKGC's initiatives to combat illegal gambling. This could involve sharing data and best practices to better monitor and regulate online casinos, ensuring consumer protection and fair play in both countries.
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