Gambling Commission research challenges black market assumptions

Research from the Gambling Commission suggests that punters who repeatedly use unlicensed operators in the UK also continued to use licensed ones, challenging assumptions held by both the regulator and large portions of the industry. On this episode of iGaming Daily, host Charlie Horner is joined by SBC Media Editor Ted Menmuir and SBC News Editor Ted Orme-Claye to unpack the findings and what they mean for player protection. The Commission analysed bank transactions from a sample of UK consumers, tracking 3,426 transactions across 179 individuals. Menmuir said the headline was the overlap, with 91% of those with repeat detected unlicensed transactions also gambling with licensed operators. That, he argued, undermines the idea that using the black market means abandoning the regulated one, something operators have warned about for years. Orme-Claye agreed, though he said the data does not fully discredit the industry argument that consumers are drawn to unlicensed sites. Orme-Claye also pointed to the risk profile. He said 45% of those scoring eight or more on the Problem Gambling Severity Index (PGSI) were transacting with the illegal market, suggesting problem gamblers are a core customer base for offshore firms. Some, he added, may be self-excluded players targeted by “non-GamStop” brands. Both acknowledged the small sample and limitations with the Commissions methodology, but Menmuir said the research is still valuable because it tracks real transactions rather than relying on survey data. The group agreed that the next step is research into motivations, with Orme-Claye saying blocking payments alone will not treat the underlying problem. Watch the full episode here.