The UK’s Betting and Gaming Council (BGC) has raised concerns over the significant rise in black market gambling activities during 2022, particularly during major sporting events such as the World Cup. Research conducted by Yield Sec revealed that in December alone, 250,000 individuals visited black market gambling sites, compared to 80,000 during the same month in 2021.
Alarming Increase in Black Market Traffic:
Yield Sec’s research also uncovered a substantial increase in online traffic to sites advertising services for problem gamblers who had self-excluded from UK licensed operators. Traffic to these sites surged by 83%, indicating a concerning trend of vulnerable individuals seeking unregulated gambling options. Furthermore, peaks in black market site visits occurred in March and June, coinciding with major horseracing events at Cheltenham and Ascot, respectively. These findings underscore the need for effective measures to combat the allure of unregulated gambling platforms during prominent sporting events.
The Threat to Consumers:
BGC CEO Michael Dugher expressed grave concern over the growing threat posed by the unsafe and unregulated black market to punters. While regulated operators in the UK have been diligent in adhering to strict regulations and promoting safer gambling practices, black market operators have been exploiting vulnerable individuals. The research findings highlight the alarming gambling trends that emerged during the World Cup, dispelling the notion that such activities primarily occur within the regulated sector. Instead, it is the unlicensed black market that poses a significant risk to consumers.
Rise in Black Market Site Visits:
The BGC’s analysis revealed a 46% increase in visits to black market gambling sites from the UK throughout 2022, with approximately 148,000 customers accessing such sites each month. Licensed UK operators are required to implement stringent identity and age verification checks to protect against problem gambling and fraud. In contrast, unlicensed black market operators operate without any such checks, leaving consumers vulnerable to potential harm.
The Urgent Need for Stricter Regulations:
BGC CEO Michael Dugher emphasized the urgent need for stricter regulations to tackle the growing black market gambling activities. The BGC, along with licensed operators, is committed to promoting responsible gambling and protecting consumers. However, the lack of regulatory oversight in the black market sector poses significant challenges in ensuring consumer safety. It is crucial for policymakers to address this issue by implementing robust measures that prevent access to unlicensed operators and enforce stricter penalties for those involved in illegal gambling activities.
Yield Sec Founder and CEO Ismail Vali echoed the concerns raised by the BGC, highlighting the continuous threat posed by illegal gambling operators to players and the wider audience. The research findings serve as a reminder of the ongoing battle against unregulated gambling and the need for collaborative efforts from industry stakeholders, regulators, and policymakers to protect consumers effectively.
The surge in black market gambling activities during 2022, as highlighted by the BGC and Yield Sec’s research, calls for immediate action to safeguard consumers in the UK. The alarming increase in site visits, particularly during major sporting events, underscores the need for stricter regulations and enforcement to combat illegal gambling operations. It is imperative to address the allure of unregulated platforms and provide more comprehensive support to problem gamblers. By prioritizing consumer protection and implementing robust regulatory measures, the industry can mitigate the risks associated with the black market and ensure a safer gambling environment for all.