The Betting and Gaming Council, combined with Frontier Economics, have released a study titled ‘The size and economic costs of black market gambling in Great Britain,’ detailing the ins and outs of how the people of GB are gambling on the black market. This September publication sheds light on the differences between the regulated and unregulated gambling markets, which may be startling reading for some. One of the biggest numbers to come out of the research is that the researchers estimate no less than £2.7bn is staked annually on the black market in Britain.
This alarming figure highlights the dangers of unregulated gambling, where players lack the protections offered by licensed operators. HeadlineCasinos - a reputable online casino directory - emphasises the importance of a regulated market, ensuring that players are safeguarded through proper licensing, responsible gambling measures, and secure transactions. The rise of illegal gambling underscores the need for players to be vigilant before signing up for online casinos. By choosing regulated platforms, players can ensure a fair and secure gambling experience.
Spelling Out the Size of The Problem
According to the report, around 14 million people around Great Britain will indulge in some form of gambling every month. Considering that 67.6 million people are recorded as living in Great Britain as of mid-2022, that figure represents around 21% of the overall population or one in five people.
When you’re looking at that high a percentage of the population that is gambling, you already know that the revenues are going to be huge - and it’s true. In just a year, £10.9 billion is generated in Gross Gambling Yield (GGY), which is how much the gambling companies take after all winnings are paid out.
But when £2.7bn is being staked on the black market out of this figure, it gives you some idea of the size of the black market itself.
What is Black Market Gambling?
There are plenty of regulated gambling avenues in the UK and Great Britain, from bet shops and online sports betting to casinos and the lottery. But there is also the black market, where you’ll find underground casinos, street bookies, social media betting groups, crypto casinos, and offshore websites and apps.
These black market options can appeal to gamblers for several reasons, including better bonuses and free bets, an anonymous style of gambling, better odds, a wider range of games, and avoiding registration or deposit limits. These black market options circumvent the licensing and conditions required by the UK Gambling Commission, even though they may be registered through some other body.
In fact, through the survey, it was discovered that 15% of people knew of at least one unregulated online gambling brand. A majority of brands identified by people had run successful marketing campaigns with high-profile sponsorships, typically through sports stars, influencers, and other well-known people in the community. Another avenue that these brands managed to utilise well was social media marketing. On the other hand, most regulated gambling brands were known through their TV and radio advertisements - something that black market brands cannot leverage.
Who Uses Black Market Gambling?
In the report, it was found that 8.1% of people actually used black market sites, apps, or social media groups for gambling, while 81% used regulated gambling online operators. The survey found that black market online channels were more visible and used by a younger demographic; 22% of those aged 18-24 used black market online gambling as opposed to just 4% of those aged 55-64. Considering that younger generations are always at the forefront of online entertainment, this shouldn’t come as a surprise.
What’s interesting is the crossover between people who use black market online gambling and the amount that is staked per month. In fact, of those people who use black market gambling, 17% spend over £1000 per month, whereas just 6% spend under £200.
What Does it All Add Up To?
Whereas the vast majority of gamblers - 93.8% - only gamble with regulated operators, 5.4% of people use both, with 12% of their spend on black market gambling. That means £2.7B is staked with black market operators annually, a nice slice of the pie if you can get it.
Unlicensed operators will continue to woo gamblers with their deals, promos, and sponsorships, and it seems like the younger generation is happy to stay open to this form of gambling. While there are risks involved on the gambler’s side, they seem to be fairly comfortable in taking these risks for the chance at a reward. The authorities will continue to try and crack down on black market operators, but as soon as one goes down it seems another just pops right up.
This article was written in cooperation with HeadlineCasinos.com