Black Market Gambling Gains Ground in the UK

Unregulated Gambling on the Rise

The Black Market Evaluation Report, based on over 1,500 survey responses across different demographic groups, exposes widespread use of illegal gambling platforms in the UK. Respondents cite frustration with regulated markets—including affordability checks, deposit limits, and the removal of features like turbo spins and bonus buys—as key motivations for turning to offshore or blockchain-based operators.

The report found that consumers perceive the regulated market as too restrictive, while unregulated operators offer faster play, fewer limits, and anonymity. One participant described the shift plainly: “Gambling in the UK is dying because of Nanny State overlording by the government.”

Influencers and Affiliates Accelerate the Shift

Content creators play a central role in this migration. Platforms like YouTube, Twitch, and Discord are used to promote unlicensed casinos—often through affiliate codes promising no verification, high bonuses, and access to restricted features. The report found that 84% of externally reviewed gambling influencers were actively promoting black market sites. One UK-based influencer alone generated over 1 million views in a single month while encouraging sign-ups to unregulated crypto casinos.

Creators are incentivized by significantly higher affiliate revenue and fewer content restrictions. According to the report, some received non-withdrawable play money, high-value gifts like Rolex watches, and enhanced VIP treatment from black market operators.

Children at Risk from Black Market Exposure

Perhaps most concerning is the report’s finding that an estimated 420,000 school-aged children may be engaging in unregulated gambling, particularly via social media, gaming platforms, and blockchain casinos. Children often access these services through VPNs and are heavily exposed to influencer content featuring gambling. A Deal Me Out-led educational program in secondary schools revealed that 67% of surveyed students reported gambling in the past year.

Roblox and other gaming platforms were also flagged as hotspots for gambling-like mechanics, including peer-created in-game casinos using virtual currencies that can be converted to real money through black market channels.

Addicted Gamblers Circumvent Regulation

For individuals with gambling addictions, regulatory tools like Gamstop are failing to provide adequate protection. Many report being targeted with marketing emails, texts, and direct messages after signing up for self-exclusion schemes. 67% of respondents who registered with Gamstop reported bypassing it to access black market sites.

One respondent recounted depositing over £129,000 within two weeks while on Universal Credit. Another stated: “I put £50 onto a website that I thought was legitimate, won and tried to withdraw—no response. A year later, I still haven’t been paid.”

The black market is not just unregulated—it’s also often fraudulent. The report documented widespread use of fake games, which mimic legitimate titles but are programmed to reduce or eliminate payouts. Only 9% of respondents believed black market games offered the same return-to-player rates as regulated ones. Several game providers confirmed their products had been illegally cloned and hosted on black market websites.

Policy Considerations and Recommendations

The authors urge the Gambling Commission and policymakers to carefully evaluate the unintended consequences of overregulation. They stress that restrictive policies may inadvertently drive players into more dangerous environments. Recommendations include:

• A public awareness campaign about the risks of the black market.

• Stronger controls on influencer marketing and affiliate schemes.

• A coordinated effort to disrupt blockchain gambling access.

• Greater investment in treatment, education, and cross-sector cooperation.