Gamblers using illegal betting websites in Britain are more than seven times as likely to exhibit problem gambling behavior as those using licensed operators, according to research published by the UK Gambling Commission (UKGC).
The study found that 45% of illegal gambling users scored eight or higher on the Problem Gambling Severity Index (PGSI), compared with just 6% of licensed gambling customers.
A score of eight or above indicates problem gambling behavior, while 17% of illegal gambling users scored between three and seven, compared with 9% of licensed customers. However, the regulator cautioned that the findings did not establish whether illegal gambling directly causes greater gambling-related harm.
The research also revealed substantial overlap between regulated and unregulated gambling, with 91% of individuals who repeatedly transacted with illegal operators also gambling through licensed platforms.
“Illegal gambling is embedded within existing gambling behavior rather than triggering a sustained shift away from the licensed market,” the report concluded.
Among 122 individuals with at least two detected illegal gambling transactions, average monthly transactions with licensed operators remained relatively stable after their first identified illegal payment.
These individuals recorded an average of 24.8 licensed gambling transactions in the preceding month, compared with 23.7 in the following month, suggesting that illegal platforms were being used alongside regulated operators instead of replacing them.
The findings were based on an analysis of 157.2 million banking transactions involving approximately 38,000 individuals, using financial tracking data provided by YouGov between July 2018 and July 2026.
Researchers identified 3,426 suspected illegal gambling transactions involving 179 individuals, although the regulator acknowledged significant limitations in detecting payments to unlicensed operators.
Initial attempts to identify illegal transactions using known operator names produced limited results because such businesses rarely appeared under their actual names in banking records. Investigators subsequently relied on merchant categories and transaction codes to trace suspected payments.
