The UK Gambling Commission has admitted that it does not clearly know how large the illegal gambling market is. Despite ongoing research and monitoring, the regulator concedes that robust data remains scarce. This makes it difficult to quantify illegal gambling activities happening outside the country’s licensed sector.
According to Ben Haden, Director of Research and Statistics at the Commission, the available data on player engagement with unregulated platforms offers useful insights but comes with significant uncertainty. Much of the illegal market operates in the shadows, making objective measurement nearly impossible.
Limited Data and High Uncertainty
Measuring unlicensed gambling is complex. Like estimating losses from illegal tobacco sales, analysts must make assumptions to fill missing data. These assumptions can distort the final results.
The Commission insists that as a public body, it must deliver credible and transparent statistics. It also acknowledges the limits of its current research. The biggest question mark remains the financial value of the illegal gambling sector — a figure that no one can confirm with certainty.
Why a Hidden Market Is Hard to Measure
Converting engagement levels into financial estimates requires multiple layers of assumptions — each introducing a new potential error. This compounds inaccuracies and makes any resulting figures less reliable.
Despite these difficulties, the regulator insists that understanding the size and nature of the illegal market remains a crucial objective. Progress, it says, depends on breaking the problem into smaller components and increasing collaboration with licensed operators, who can share data to refine assumptions and strengthen the evidence base.
The Role of Operators and Ongoing Research
The Gambling Commission has identified that cooperation from legal operators is essential. By comparing legal market trends with observed patterns in illegal gambling, regulators hope to isolate indicators of unlicensed activity more accurately.
The agency also places emphasis on trend data rather than absolute values — focusing on identifying changes in consumer behavior, the emergence of new illegal sites, and potential connections to organized crime. These insights, it says, are more actionable for enforcement teams tasked with dismantling illegal networks.
Why Players Turn to Illegal Gambling Sites
Previous research has shown that motivations for using unregulated websites vary widely. Some consumers are unaware that they are gambling illegally, while others turn to these sites because they have been self-excluded or restricted by legal platforms for responsible gambling reasons.
Haden noted that not every pound spent in the illegal market should be viewed as a direct loss to licensed operators. For example, players who are self-excluded are already barred from gambling legally, so their activity does not represent missed legal revenue — though it still signals a serious risk of harm.
Commercial restrictions, such as deposit limits or account closures by regulated casinos, also push some consumers toward offshore or unlicensed options that promise fewer limits and faster payouts, albeit at much higher personal risk.
No Evidence of a Sustained Surge in Illegal Gambling
Despite the uncertainties, the Gambling Commission reports no sustained growth in illegal gambling participation based on its available data. While some political and industry voices have claimed that the black-market threat is spiraling, the regulator’s findings do not support the narrative of uncontrolled expansion.
However, this does not mean the issue is minor. Haden acknowledged that illegal gambling poses a “serious problem that demands continued attention,” especially as online access and advertising restrictions evolve.
Strengthening Tools and Cross-Border Cooperation
The Commission continues to develop risk-based disruption tactics, using advanced data-monitoring tools to identify and block unlicensed websites. Increasing collaboration with international regulators, financial institutions, and internet service providers has made it harder for illegal gambling networks to operate at scale in the UK.
Haden concluded that tackling unlicensed gambling is a long-term effort requiring shared responsibility between regulators, operators, and technology partners. Reliable statistics may remain difficult to achieve, but ongoing data collection and cooperation are gradually improving the Commission’s understanding of this shadow market.
Final Thoughts
The Gambling Commission’s latest admission underscores the hidden nature of unlicensed gambling in the UK — a sector defined by secrecy, incomplete data, and blurred boundaries between legal and illegal play. While progress has been made in monitoring and enforcement, the lack of concrete figures remains a major obstacle.
Still, by prioritizing transparency, collaboration, and targeted disruption, the UK regulator aims to limit the reach and profitability of illegal operators, safeguarding consumers and reinforcing the integrity of Britain’s regulated gambling industry.
John “Mister Casino” has been a prominent figure in the online gambling industry for over two decades. Known for his sharp insights and unbiased reviews, “Mister Casino” has become a trusted voice for casino enthusiasts worldwide.
Join Now