SBC News UKGC begins new evidence-led methodology against illegal threats

UKGC begins new evidence-led methodology against illegal threats

The UK Gambling Commission (UKGC) has set out its approach to combat unlicensed gambling threats, viewed as a source of crime impacting society.

The mandate is led by Chief Executive Andrew Rhodes as the Commission upholds its “corporate strategy to increase investment, resources, and capacity to tackle illegal gambling”.

Unlicensed gambling is viewed as a crime and an economic threat as illegal operators contribute no tax and undercut a legitimate market, thereby failing to protect consumers.

To date, the Commission’s enforcements against unlicensed operators have focused on disrupting illegal operations by blocking URLs, denying payments, and making illegal products inaccessible.

Cooperation with wider authorities, technology partners, and international regulators has seen the UKGC impose over 750 cease-and-desist notices. Over 78,000 URLs have been referred to Google and Microsoft, with 50,000 removed and 255 websites taken down.

As UK gambling adjusts to new rules and technical measures, the Commission is aware of concerns that some consumers might be displaced and pushed away from legal, regulated gambling options. Despite this risk of displacement, Rhodes emphasised that avoiding new regulations is not the solution, especially when there are clear issues in the current regulatory framework that need to be addressed.

“Minimising the potential for harm from unlicensed operators is of high importance, as our own research shows that some of its main targets include people who are self-excluded or have otherwise had customer relationships terminated by operators, or where they are pursuing things not available to them in the legal market.”

“Those targeted are sometimes vulnerable customers – but they have been given a route back to gambling by unlicensed operators.”

Central to its strategy, the Commission has prioritised the use of data analytics to ensure that regulation and enforcement are more effective against black market operators.

The Commission has published a new ‘evidence-led’ methodology paper to identify unlicensed online gambling operators and to estimate the scale of the black market.

“Today’s methodology paper is the first step in sharing this work, and we are committed to publishing more as it develops,” said Rhodes. “The new data will, in time, allow us to publish more metrics on unlicensed gambling. We know that the data is of greatest value in terms of showing the dynamics of this market – such as changes in customer activity from month to month. Once a fuller, more robust time series is available, we will publish our findings and outline the conclusions we have drawn.”

The UKGC is also taking steps to better understand consumer behaviour in relation to the unlicensed gambling market. Through its Consumer Voice programme, the Commission is conducting research to explore why certain consumers turn to unlicensed operators and what motivates their choices. The research will provide insights into the pathways leading to unlicensed gambling, including situations where consumers may not be aware that they are engaging with unregulated operators.

“One outcome of this research is to gain a better understanding of the right questions we can ask in consumer research, which will help supplement our data sources. We want to include these findings in the Gambling Survey for Great Britain (GSGB) to allow improved monitoring over time,” Rhodes added. The ongoing research is expected to inform the Commission’s future strategies, with full findings due to be published in 2025.

The Commission will priortise improving its procedures to address illegal markets more effectively. A key development will be the introduction of a new cease-and-desist process targeting the growing trend of unauthorised “prize draws and competitions.” This issue has raised concerns across government agencies, including HM Revenue and Customs (HMRC) and the National Crime Agency (NCA).

A further initiative will see the expansion of the Commission’s partnerships with search engines. Following its successful collaboration with Google, the UKGC has now established a working relationship with Microsoft to include platforms like Bing and Yahoo Finance in its efforts to remove unlicensed gambling content from search results.

Additional steps include increasing engagement with law enforcement agencies, such as the Police Intellectual Property Crime Unit, and strengthening ties with payment providers to disrupt illegal transactions.

Rhodes reiterated the importance of collaboration and data-driven action: “We are committed to making it difficult to provide illegal gambling at scale to consumers in Great Britain. The partnerships we’ve built with international regulators, technology partners, and search engines are already delivering results, and we’re determined to keep up this momentum.”

“By using data analytics to improve our enforcement efforts, we’re not just reacting to the problem, but proactively targeting illegal operators. The publication of our methodology paper is just the first step in sharing this work with stakeholders and the public. As we continue to refine our approach, we will use this data to provide deeper insights into the scale and dynamics of the illegal market.”

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