Betting and gaming in Great Britain is big, with Gross Gambling Yield of £10.9 billion in 2022/23 (excluding the National Lottery). 19 million adults are estimated to gamble each year.
Most gamble with regulated operators. But the way people engage with gambling, particularly online, is changing rapidly. The growth of social media as a platform for gambling, along with crypto, and easy access to Virtual Private Networks (VPNs) all create new ways to access unregulated gambling operators – even as unregulated in-person gambling remains a concern.
Frontier Economics was commissioned by the Betting and Gaming Council to assess the scale of black market gambling in Great Britain. Using a large-scale survey of over 6,000 participants, we gathered insights on player awareness and use of unregulated gambling operators, and the drivers behind black market gambling – all tied back to customer lists so we could combine survey responses with actual behavioural data.
A matter of perspective?
On one view, the black market is small – which is good news for now. We found only around 2.1% of online stakes are placed with unregulated operators in Britain.
But even this means £2.7 billion staked annually online. What’s more, we found 1 in 12 gamblers are already engaging with black market sites. Usage is especially high for younger players and heavier gamblers – potentially those most at risk – attracted by better bonuses, anonymity and fewer restrictions compared to regulated operators. Meanwhile, ‘multi-homing’ is common: among those using unregulated operators, almost £15 billion was staked with regulated online operators – stakes that could be shifted quickly and easily to the black market.
By its nature, the black market is hard to assess. But it’s important to try. And an approach that combines customer data, behavioural insight, and carefully targeted new data collection will help industry stakeholders, government and regulators understand the extent of the issue, reach a more constructive engagement, and formulate strategies to respond.
Read our full report here.