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Illegal Gambling Linked to Higher Problem Scores

The Gambling Commission released a study that ties illegal online gambling to higher problem-gambling severity. 45% of the 179 users who placed bets on unlicensed operators scored eight or more on the PGSI, compared with just 6% of those who used licensed sites. The data also show that 16% of illegal-site users scored between three and seven, versus 8% of licensed-site users.

Overlap Between Black-Market and Licensed Play

The Commission found that 91% of people who transacted with illegal firms also gambled with the legal sector at the same time. This overlap means that a large portion of problem gamblers are not leaving the regulated market when they turn to unlicensed operators. The study notes that the black-market presence persists even as legal operators face tighter regulations such as Financial Vulnerability Checks and Financial Risk Assessments.

Transaction Patterns on Unlicensed Platforms

The average number of transactions on an unlicensed site in the first month after a user’s first engagement was 4.9. The figure fell to 1.8 in month two, 1.4 in month three, rose slightly to 1.9 in month four, and then dropped to 1.2 and 1.5 in months five and six. The pattern suggests a brief spike of activity followed by a gradual decline, but the persistence of any activity indicates that users remain drawn to the unlicensed market.

Regulatory Response and Operator Friction

Operators argue that the study’s exclusion of the National Lottery from the 6% figure of high-PGSI licensed gamblers may frustrate bookmakers and casinos that insist on equal treatment. The Commission, however, does not shift responsibility away from the regulated sector. It highlights that a significant portion of problem gamblers continue to play licensed sites, underscoring the need for operators to improve responsible-gaming measures.

Impact of Recent Tax and Duty Changes

The study came the same week the government announced a rise in Machine Games Duty to 25% for Category B machines from 2027 and an increase in online gaming tax. These moves add pressure on licensed operators, potentially driving some players toward cheaper, unlicensed alternatives. The Commission’s findings reinforce concerns that higher taxes and stricter controls may inadvertently fuel the black market.

Practical Takeaway for Players

Players who self-exclude via Gamstop may still find themselves on non-Gamstop sites, bypassing the exclusion. The data show that problem gamblers are more likely to gamble on illegal sites, yet they also maintain activity on licensed platforms. Operators must therefore tighten KYC triggers, enforce withdrawal limits, and monitor wager multipliers to reduce harm.

What to Watch Next

The Commission’s small sample size—179 transactions with PGSI data for 146—limits the generalisability of the findings. Future studies with larger, more diverse samples will be needed to confirm the link between illegal gambling and problem-gambling severity. Meanwhile, regulators and operators should focus on closing the loopholes that allow self-excluded players to slip into the black market while still accessing licensed games.

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About this article

Material claims are checked against the source and supporting references below. Editorial analysis is separated from reported fact. Read our editorial standards and corrections process.

Primary topic
regulation
Last reviewed
Oct 31, 2026
Original source
sbcnews.co.uk
Coverage angle
Gambling Regulation

Key Takeaways

  • Illegal sites pull in players with PGSI scores of eight or more at a rate 7.5 times higher than licensed operators
  • Over 90% of illegal-site gamblers also play licensed games, showing that regulation alone does not curb harm
  • Tax hikes and tighter controls may push players toward cheaper unlicensed alternatives, widening the black market

FAQ

What is the PGSI score?

The Problem Gambling Severity Index measures gambling-related harm on a scale from 0 to 27.

How many illegal gamblers also play licensed sites?

About 91% according to the Commission study.

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