Gambling Black Market in GB: Who Is Most at Risk?
The UK’s online gambling sector is at a pivotal moment as unlicensed platforms continue to expand. This growth has sparked concern over both potential revenue losses and the risks posed to vulnerable gamblers.
A recent Gambling Commission report has renewed discussion by posing two crucial questions: which players are most at risk of moving to offshore sites and what actions are necessary to prevent this migration?
Who Is Really at Risk?
Contrary to the long held belief that only self excluded users or underage players seek out unlicensed platforms, the Commission’s data shows something different. The profile of those using illegal sites looks almost identical to the legal gambling population, mostly men, particularly in the 18–24 age bracket, frequent bettors, and individuals who already score high on problem gambling indicators such as the PGSI scale.
Public Confusion Around Licensing
The research also highlighted widespread misunderstanding about regulation. Elizabeth Dunn, a partner at Bird & Bird, noted that this knowledge gap remains one of the industry’s biggest weaknesses.
“What’s striking is the gap between consumers valuing licensed operators but not knowing how to confirm a site’s licensing status” she explained. “That comes partly from low awareness, but also reflects how sophisticated the black market has become.”
Alasdair Lamb of CMS added that many players don’t abandon regulated websites entirely. Instead, they use offshore platforms as a supplement, while keeping most of their activity on legal sites.
A Call for Stronger Awareness
According to Dunn, the research highlights that regulators and licensed operators share a duty to communicate more openly with the public. This aligns with the Gambling Commission’s push for more impactful education and awareness initiatives.
The Betting and Gaming Council (BGC) echoed these concerns, referencing a Frontier Economics study estimating that around 1.5 million people in the UK are wagering on illegal sites, with annual spending reaching up to £4.3 billion.
“Unregulated platforms are attracting a troubling number of young bettors,” the BGC stated. “More than 20% of those aged 18–24 are already engaging with unsafe operators, many of which deliberately target vulnerable individuals, including players enrolled in self exclusion programs.”
The BGC further cautioned that if regulatory demands or tax burdens become excessive, even typical consumers could shift towards illicit operators putting public protection at risk while draining revenue from the state.
Contested Conclusions
Experts remain divided over the Gambling Commission’s recent findings. At the Peers for Gambling Reform forum, some argued that the primary risk from unlicensed operators falls on minors and self excluded gamblers.
Ismail Vali, CEO of Yield Sec, challenges this interpretation, noting that the Commission’s survey excluded underage participants, providing only a partial view of the market. Yield Sec monitors illegal gambling using sophisticated tracking technology and released its own detailed analysis in September.
The report indicates that most traffic to unauthorized platforms originates from users bypassing GamStop. Although a portion of regular gamblers engage with these sites, the majority of activity is driven by self excluded players and minors.
Vali also emphasized the aggressive promotional techniques deployed by black market operators, including search engine optimization (SEO) manipulation, targeted data brokerage and social media algorithms aimed at vulnerable groups.
According to Yield Sec’s findings, the UK’s illicit gambling sector has expanded sharply, growing from less than 1% of total market activity in 2020 to nearly 9% in 2025. The study identified more than 500 unlicensed operators and over 1,100 affiliates promoting them.
GamStop in Focus
GamStop, the national self exclusion program in the UK, remains central to the debate. Since its establishment in 2018, it has registered over 600,000 participants.
The organization acknowledges that controlling unlicensed operators is challenging but notes that forthcoming legislation will enhance the Gambling Commission’s ability to block domains and IP addresses associated with illegal platforms.GamStop referenced an Ipsos study revealing that only 8% of respondents reported gambling with unlicensed platforms, suggesting the issue may not be as pervasive as some critics claim.However, Ismail Vali firmly disagreed with this view. “Since 2020, the issue has doubled each year,” he cautioned. “We’re now at a critical stage, and without decisive measures, the figures will continue to rise.”
Vali further stressed that many unlawful gambling promotions are placed on pirated streaming portals, which increases exposure and draws more users toward unsafe operators exposure to a much broader audience.
Defining Accountability
Vali emphasizes that the primary responsibility rests with the Gambling Commission and GamStop to ensure players are adequately protected.
“If vulnerable users are told they are safeguarded by programs like GamStop, then those protections must be effective,” he explained. “This requires targeting the entire supply chain including advertisers, affiliates, and the platforms that enable illegal operators to operate.”
Elizabeth Dunn noted that the regulator’s constrained ability to take action against offshore companies continues to pose a significant challenge. She expects a growing emphasis on licensed B2B providers to disrupt the flow of game content relied upon by unlicensed operators.
