Illegal betting users also play on licensed sites

A study by the UK Gambling Commission shows that players who repeatedly use illegal operators in Britain also continue to use licensed operators. This result runs counter to assumptions adopted by a significant part of both the regulator and the industry.

The Commission examined the bank transactions of a sample of consumers in the UK. The study tracked 3,426 transactions made by 179 people. It found that 91% of people who repeatedly made illegal transactions also placed bets with licensed operators.

SBC Media Editor Ted Menmuir and SBC News Editor Ted Orme-Claye discussed this picture on the iGaming Daily programme. According to Menmuir, this data shows that using the black market does not mean completely abandoning the regulated market. Orme-Claye agreed with this view, but noted that the data does not entirely refute the industry claim that consumers are being drawn to illegal sites.

The findings are also notable in terms of risk. It was reported that 45% of those scoring 8 or above on the Problem Gambling Severity Index (PGSI) transact with the illegal market. This led to the interpretation that problem gamblers are a core customer base for offshore companies. It was also mentioned that some players have self-excluded and have become the target of 'non-GamStop' brands.

Both the small sample size and the limitations of the Commission's method were acknowledged. Menmuir said that the study's reliance on real transactions rather than survey data is valuable. The panelists agreed that the next step should be research examining players' motivations. According to Orme-Claye, blocking payments alone will not solve the core problem.