Problem Gambling Rates Seven Times Higher Among Illegal Gambling Site Users, UKGC Research Finds

People in Britain who gamble on unlicensed websites are more than seven times as likely to fall into the highest-risk category for problem gambling as those who use licensed operators, according to new research published by the UK Gambling Commission (UKGC).

The regulator found that 45% of illegal gambling website users recorded a Problem Gambling Severity Index (PGSI) score of eight or higher, compared with just 6% of customers using regulated gambling platforms.

A PGSI score of eight or above indicates problem gambling behaviour and represents the highest-risk category under the screening system.

The findings were published in a UKGC research report examining consumer banking transactions recorded between July 2018 and July 2026.

Researchers also identified a considerable difference among gamblers in the moderate-risk category.

Approximately 17% of individuals using illegal gambling websites recorded PGSI scores between three and seven, compared with 9% of customers gambling through licensed operators.

However, the Commission cautioned that the results demonstrate an association rather than a direct causal relationship. The research does not establish whether gambling on illegal websites increases the likelihood of experiencing gambling-related harm or whether individuals already experiencing problems are more likely to use unlicensed platforms.

Most Illegal Gambling Site Users Also Bet With Licensed Operators

The research challenges the assumption that customers who access illegal gambling websites necessarily abandon regulated operators.

According to the UKGC, 91% of individuals who repeatedly transacted with illegal gambling businesses also used licensed gambling platforms.

This suggests that unlicensed websites frequently operate alongside regulated gambling services in customers’ existing betting habits.

Cryptocurrency and Alternative Payments Complicate Illegal Gambling Detection

One of the study’s main limitations was its inability to capture gambling payments made outside conventional banking channels.

Cryptocurrency transfers and transactions processed through alternative payment networks were not fully represented in the banking data.

This means some consumers who accessed illegal gambling websites may not have been identified, particularly if they used payment methods that did not appear as recognisable gambling transactions.

While the study provides evidence of differences in gambling risk between users of licensed and unlicensed platforms, its transaction data does not offer a complete picture of illegal gambling activity across the country.

UK Gambling Black Market Faces Growing Scrutiny

The findings come amid increasing concern about the scale of illegal online gambling in Britain and the potential risks associated with unregulated operators.

Although the Gambling Commission has avoided producing a market-size estimate from this research, industry representatives have published their own projections.

In August, the Betting and Gaming Council (BGC) warned that illegal betting on Premier League football could reach £1 billion ($1.36 billion) by the 2027/28 season. That forecast reflects concerns within the regulated gambling industry about consumers placing wagers with operators that fall outside the UK’s licensing framework.

The study highlights the difficulty of identifying illegal gambling activity through financial records and reinforces the need for further research into how consumers use unlicensed websites and the relationship between illegal gambling participation and gambling-related harm.