The UK has one of the oldest, largest, and most advanced Online Gambling markets in the world. Known for its strict regulations, the UK is a place where sports bettors and casino fans have the chance to test the latest and greatest. You can find almost all the big names in the iGaming business there, and all of them are licensed.
However, Nostrabet.com found an interesting report from the Gambling Commission (UKGC) regarding illegal online gambling in the country. It focuses on the motivation, awareness, and drivers behind why people choose to use such sites in the first place. This is a topic that not a lot of people talk about, so analyze everything and see what we’ll find.
Context and Background
Before diving into illegal online gambling, it’s essential to know that gambling activities in the UK are regulated under the Gambling Act 2005. The UK Gambling Commission is the country’s respective authority, and it grants licenses. Igaming sites with active permits must comply with strict rules on player protection, AML, advertising, and safer gambling tools.
Despite the mature market and strong regulations, the country still has an illegal iGaming market. Almost all sites are based overseas and thus do not fall into the UKGC’s jurisdiction. The stats are intriguing because it seems like one in every 12 gamblers from the UK has used such a site.
The UKGC is aware of the situation and has mentioned several times that illegal gambling is a serious issue. In fact, the Commission even came out with a report where it highlighted a few interesting aspects about these sites and the people who use them.
Who Uses Illegal Online Gambling & What’s Their Motivation?
This is probably the most interesting part of the analysis because it will focus on UKGC’s study. As mentioned, illegal online gambling is a thing in the UK and it seems like it has fans from certain types of groups. The research has shown that there are 4 broad audience groups that engage with such sites and we’re about to reveal each one.
Generally speaking, the demographics reveal that young men are the most likely to use illegal gambling operators. The stats reveal that those between the ages of 18 and 24 who are frequent players with a high score in the Problem Gambling Severity index usually use such platforms.
Self-Excluders
The first type of people who use illegal gambling sites in the UK are the self-excluders. These are people who have decided to use the self-exclusion responsible gambling feature and “ban themselves” from using regulated gambling sites in Great Britain. Most people achieve this by using GAMSTOP or other similar gambling blocking tools.
The reason why these kinds of people choose illegal sites is simple – they do not have another choice. Since these sites do not adhere to the UKGC’s rules, the self-exclusion does not affect them. Most people have used the feature because they wanted to control their gambling behaviour, but it seems like not everyone can “resist the urge”.
The study also shows that people who use such sites focus on football betting, bingo, slot games and virtual gaming.
Skilled Advocates
Number 2 on the list of people who use illegal online gambling operators goes to the skilled advocates. This is probably the broadest group of people who use such sites because it consists of those who do it on purpose. Most of them use these sites because they want to gamble with digital or foreign currencies, explore new types of games, or learn a new skill.
Cryptocurrency gambling is still not as popular in the UK as it is in other parts of the world. Many people don’t like that and prefer to find sites that offer these payment gateways.
Social Explorers
This group of people using illegal gambling sites in the UK consists of “random players”. Most ended up in this position after discovering these sites via forums, social networks, and other media channels. What’s interesting about them is that most will simply test these sites without committing, meaning they rarely spend a lot of money.
Accidental Tourists
Lastly, we have accidental tourists, a group of people who stumble upon illegal sites by accident. What sets them apart from everyone else is that they are not aware that they are using an illegal online gambling operator. In fact, most of them probably don’t even know there are such things.
What are the Reasons Behind People’s Decision to Use Illegal Gambling Sites?
Since the UK has so many legitimate world-class gambling platforms, you may wonder why people choose illegal sites at all. What’s the point of using such operators when there are plenty of others to pick from? Well, it turns out that there are a lot of reasons why some gamblers do it:
- Better Odds and Bonuses – Since the illegal sites do not adhere to any UKGC rules, they can (in theory) provide better odds and bonuses. While the situation with the odds is doable, some bonuses can look a lot more appealing.
- Access to Unique Products – UKGC regulates the types of games that sites can offer. Those who do not rely on its permit are free to add more games that are not allowed in regulated markets.
- Alternative Payment Option – We already touched on that, but it’s essential to highlight it again. Some gamblers prefer more anonymity and want to use foreign currencies or cryptocurrencies.
- Absence of Consumer Protection Tools – Regulated companies must verify users’ data and provide different responsible gambling features. While some illegal platforms offer the same, these sites are usually not obligated to do that.
What are the Risks Associated With Using Such Sites?
We can see why some people would want to choose illegal gambling sites in the UK. They may offer a thing or two more than the rest, but does that make them worth it? This is for everyone to decide, but before making up your mind, here are a few of the risks you should consider.
- Financials – Unfair odds, manipulated casino games, no payouts, risk of fraud, and the list goes on and on. These sites don’t need to “answer to anyone”, meaning it is possible to come across these issues.
- Lack of Regulation – Having no oversight means no protection for vulnerable users. As mentioned, these sites usually have no age verification and lack any responsible gambling tools.
- Money Laundering – This is not something people think about, but it is there. Criminal syndicates often use illegal gambling sites tp launder money
- Security Risks – Since the sites don’t follow UKGC’s rules, many lack security features. This means your personal and financial data is at risk of theft.
- Legal Risks – If something goes wrong, taking the specific operator to court will be a nightmare. While you could do that (in theory), in practice, you will have to wait a long time before something happens.
A lot of the illegal gambling activities take place because people simply don’t know the site falls into this category. This is because they do not know where to look for a license and if it is actually issued by the UKGC. The awareness of certain group of people also tends to be lower than others.
The Possible Solutions
Due to how tech works nowadays, there is no way of completely dealing with illegal gambling. No matter what the UKGC does, there will always be such sites, and people will be able to access them. However, there are a couple of steps that we believe can be beneficial in the long run.
- Educating Consumers – The UKGC could start a campaign to educate people about licensed and unlicensed sites. It should highlight some of their biggest differences and the risks that come with using illegal sites.
- Targeting Vulnerable Groups – As already mentioned, certain types of online gamblers are more susceptible to using illegal sites. Therefore, the UKGC should focus on them and do what it can to prevent them from using these sites.
- Strong Rule of Law – UK’s authorities have to start shutting down all illegal sites. They can also block payment channels and restrict ads.
- Offering More Options to Regulated Sites – This is an interesting point. If the regulated operators have more freedom to offer the latest options in the business, people will not feel the need to look for illegal companies.
- Regulation of Payment Providers – Authorities in the UK could try to regulate payment and financial providers’ offering of payments to these sites. If locals have no way of depositing outside of cryptocurrencies, the number of people using such operators will be lower.
Conclusion
Despite the heavy regulation, illegal gambling remains an issue in the UK. Drawn by the promises of better odds, more bonuses, and better options, users often opt for these kinds of sites. Sadly, many find out that these sites are not what they seem to be and often get into all sorts of trouble.
The evidence shows that awareness remains patchy, and many consumers struggle to identify whether a given platform is legal. We believe it is a matter of time before the UKGC launches new campaigns that will educate iGaming fans. Until then, you have to be careful and check everything about the site you want to use.
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