UKGC Finds Problem Gambling Seven Times Higher Among Illegal Users
United Kingdom.- 3 November 2026 | www.zonadeazar.com The UK Gambling Commission (UKGC) has published research identifying a strong association between the use of unlicensed gambling platforms and indicators of problem gambling.
According to the study, 45% of individuals with detected transactions involving illegal operators scored eight or higher on the Problem Gambling Severity Index (PGSI), compared with 6% of licensed gambling consumers in the dataset.
This represents a prevalence more than seven times higher among users associated with illegal platforms.
However, the regulator emphasised that the findings do not establish a direct causal relationship between illegal gambling participation and the development of gambling-related harm.
Research Analyses 157.2 Million Banking Transactions
Originally published on 28 October 2026, the investigation used financial information obtained through Open Banking technology.
The analysis covered:
- 157.2 million banking transactions.
- 38,000 individuals included in the dataset.
- 4.8 million transactions involving licensed non-lottery gambling operators.
- 3,426 suspected illegal gambling transactions.
- 179 individuals identified as making those transactions.
The records were collected by YouGov between July 2018 and July 2026, with participants’ consent and through anonymised data procedures.
45% Record Problem Gambling Indicators
One of the principal findings concerns differences in Problem Gambling Severity Index (PGSI) scores.
The index measures behaviours and consequences associated with gambling-related harm.
The results were:
- PGSI score of 0: 26% among illegal gambling users, compared with 68% of licensed consumers.
- PGSI score of 1–2: 12% versus 16%.
- PGSI score of 3–7: 17% versus 9%.
- PGSI score of 8 or higher: 45% versus 6%.
A score of eight or above falls within the problem gambling category.
The comparison used available information from 146 individuals with detected illegal gambling transactions and 12,543 licensed gambling consumers.
91% Also Gamble with Licensed Operators
Another important finding concerns the relationship between regulated and unregulated gambling.
The UKGC found that 91% of individuals with repeated detected illegal gambling transactions also used licensed operators.
This indicates that both forms of gambling coexisted within the behaviour of many participants in the study.
The findings challenge the assumption that consumers necessarily abandon licensed platforms when they begin using illegal operators.
Instead, unlicensed gambling frequently appears to supplement existing regulated gambling activity rather than replace it.
Licensed Gambling Continues After First Illegal Payment
Researchers examined 122 individuals who had completed at least two detected transactions with illegal operators.
During the month preceding their first identified illegal payment, these individuals averaged 24.8 transactions with licensed gambling businesses.
In the following month, the average remained at 23.7 licensed transactions.
The difference was relatively small and did not indicate a sustained move away from the regulated market.
The study also found that illegal transactions often occurred in clusters and sometimes took place close in time to legitimate gambling activity.
Identifying Illegal Transactions Remains Challenging
The investigation identified significant difficulties in tracing payments to unauthorised gambling platforms.
Researchers initially attempted to identify transactions using the known commercial names of illegal operators.
However, this method did not produce satisfactory results.
They subsequently examined banking descriptions and merchant names associated with suspected illegal payments.
These techniques identified the 3,426 transactions included in the analysis.
The UKGC acknowledged that some illegal gambling transactions may have remained undetected because of the difficulties involved in identifying payment recipients.
4% of Transactions Involved Credit Cards
The research also examined the payment methods used to access illegal gambling platforms.
Among the identified transactions:
- 3,288 payments (96%) involved current accounts.
- 138 payments (4%) were associated with credit cards.
- 15 individuals used credit cards for transactions with illegal operators.
These findings are significant because licensed gambling operators in Great Britain have been prohibited from accepting credit card gambling payments since April 2020.
The detected transactions highlight differences between the restrictions applying to licensed platforms and payment activity occurring outside the regulated market.
UKGC Highlights Research Limitations
Despite the size of the dataset, the regulator emphasised that the sample is not nationally representative.
Consequently, the percentages should not be interpreted as national estimates of problem gambling prevalence.
The results also do not establish that using illegal gambling platforms directly causes greater harm.
The research identifies a statistical association within the sample but cannot determine the factors responsible for that relationship.
Furthermore, some transactions involving unlicensed operators may have remained undetected.
New Tools to Address Illegal Gambling
Steven Murphy, a researcher at the UKGC, highlighted the potential of financial transaction analysis to improve understanding of consumer behaviour.
The regulator believes combining banking records, surveys and analytical tools can strengthen its understanding of the illegal gambling market.
Future work will include expanding the use of financial data and exploring cooperation with banks, payment providers and other institutions.
The objective is to develop a stronger evidence base concerning unlicensed gambling activities and their potential consequences for consumers.
Industry Impact and Next Steps
The research contributes further evidence to the debate surrounding the relationship between licensed gambling markets and illegal operators.
The findings demonstrate a higher prevalence of problem gambling indicators among individuals with detected illegal transactions, while also revealing that many consumers use both markets simultaneously.
With 45% of identified illegal gambling users falling within the problem gambling category, compared with 6% of licensed consumers in the sample, the UKGC reports a difference exceeding sevenfold and highlights significant challenges for player protection.
The regulator will continue developing financial analysis tools to strengthen its investigations into the illegal gambling market.
Edited by: @fonta
