UKGC pledges improvement in black market intelligence

The UK Gambling Commission (UKGC) has shed more light on its latest black market report, acknowledging the challenges but remaining firm in its commitment to counteract illegal operators.

Tim Livesley, UKGC Head of Data Innovation Hub, highlighted that the UKGC’s methods for data collection have been noticeably improved thanks to a more tightly-knitted collaboration between the Commission’s data and enforcement teams.

The latest UKGC report, which examines practices by licensed operators that might be pushing consumers towards the black market, is largely relying on automation for intelligence gathering, Livesley added – with automation also now a core part from the business model of some of the biggest gambling companies in the world, as revealed during SBC Summit Lisbon.

Besides freeing up resources and increasing efficiency, the UKGC’s Head of Data Innovation added that automation has also allowed for the collection of data on a more frequent basis – not necessarily putting the Commission a step ahead of the black market but improving its efforts nevertheless.

The report itself has focused on black market activity over the last 15 months, identifying consumer migration facilitated through search engines and affiliate links. In its closing lines, the analysis concludes that there is ‘no observed evidence of a sustained black market growth’.

Lack of evidence isn’t evidence

However, Livesley also acknowledged that generating accurate estimates does pose significant challenges due to the illegal nature of the black market, which generally keeps it hidden and therefore very little can be said about it in a factual manner.

Perhaps even more daunting is the dynamic nature of the illegal market, with Livesley adding that unlicensed operators are continuously moving away from the UK only for others to take up their space.

Having these two statements in mind, the UKGC’s claim of lack of evidence for a substantial growth should be viewed with a level of scepticism, as gathering accurate data appears to be a challenging endeavor – if not completely impossible.

Vulnerability is profitable

Until a reliable solution is found to meaningfully push back against the black market, every player in the UK will remain at risk from illegal operators profiting off of vulnerability. 

A report published by gambling harm charity Deal Me Out earlier this year revealed that £10m was deposited into the black market in the months prior to the publication. 

Of that amount, a total of £3.6m was given away by individuals suffering from problem gambling, £1.9m from general consumers, and £5.1m was staked by content creators sponsored by unlicensed operators – further unveiling the size of the marketing machine behind the black market.