UK Black Market Gambling Targets Vulnerable Players, New Data Reveals

Yield Sec, a research firm, has uncovered alarming trends in the UK's black market gambling industry. According to their latest data, there has been a concerning surge in illegal operators preying on at-risk players who have previously self-excluded through programs like GAMSTOP. Shockingly, the number of these illicit operators quadrupled between 2021 and 2022, and then doubled again to reach 231 in 2023. Moreover, more than 1,000 affiliates have been aiding in promoting these illegal operators.

The rise of illegal gambling activities has resulted in a substantial 4% share of the UK's online gambling market, including gross gaming revenue (GGR). This not only deprives the government of much-needed tax revenue but also undermines initiatives like GAMSTOP, which aim to encourage responsible gambling behavior.

Yield Sec's research indicates that these rogue operators are actively targeting vulnerable demographics, including self-excluded players and even children. Thousands of Google searches seeking ways to bypass self-exclusion have been detected, allowing vulnerable gamblers to circumvent safeguards implemented by legitimate operators.

Ismail Vali, founder and CEO of Yield Sec, expressed deep concern over the growth of illegal operators and called for immediate intervention. He stressed the need for collaboration between regulators, legal operators, and law enforcement to combat illegal gambling and protect vulnerable players.

Yield Sec's findings align with the UK White Paper, released in April 2023, which aimed to enhance regulatory powers against illegal gambling. However, some industry experts believe that the affordability checks recommended in the White Paper may inadvertently drive vulnerable players towards the black market.

The issue of illegal gambling is not confined to the UK. Germany and France are also grappling with the prevalence of black market gambling. Germany's unlicensed operators generate a significant portion of online gambling revenue, while France is estimated to have a black market worth up to €1.5 billion. Both countries have initiated measures to address this growing concern.