Illegal betting is not replacing licensed betting in the UK

The UK Gambling Commission has published a new technical report that uses bank transaction data to show how consumers interact with illegal betting operators. The research stands out as one of the most direct pieces of evidence available in this area.

The report's most striking finding is that there is no marked decline in activity with licensed operators among people who were first identified transacting with illegal sites. The Commission interprets this pattern as meaning that illegal betting is not replacing legal betting but mostly proceeds alongside it. Commission data scientist Steven Murphy notes that this kind of analysis is probably the first of its kind carried out by a regulator anywhere in the world.

According to problem gambling severity index results, the risk distribution of people using illegal operators is reversed compared with those who bet only with licensed operators. Based on this picture, people who use the illegal market are considered to carry a higher risk of gambling-related harm.

The report also has some limitations. Some transactions may not be identifiable, and while the dataset is large, it is not nationally representative. Even so, the Commission sees this method as a powerful tool for understanding illegal betting in the UK and other countries. Murphy said they want to continue working with banks and payment firms.

Meanwhile, the Commission is looking for a new chair. Andrew Rhodes left in March and moved to the consultancy firm Hawkbridge. His departure had been announced eight months earlier. In the meantime, Sarah Gardner continues to lead the organization on an interim basis.