Recent research has unveiled a concerning surge in the exploitation of self-excluded players on GAMSTOP by the black market.
Between 2021 and 2022, the number of illegal gambling operators in the UK grew by an astonishing fourfold, and this figure further doubled to 231 by 2023.
Shockingly, over 1,000 affiliates actively promoted these unlawful operators, exacerbating the issue.
Yield Sec, a security firm, has determined that this illegal gambling now constitutes 4% of the UK’s online gambling market share and gross gaming revenue (GGR).
This not only results in a substantial decrease in tax revenue but also hinders funding for responsible gambling initiatives like GAMSTOP.
Disturbingly, the data demonstrates that these rogue operators are specifically targeting vulnerable demographics, including self-excluded players and even children.
Thousands of Google searches were discovered aimed at helping individuals bypass self-exclusion strategies, with millions of “not on GAMSTOP” search results detected by January 2024.
Consequently, at-risk players are slipping through the cracks and resorting to betting with illegal and potentially perilous operators, escaping the oversight of tools like Yield Sec and GAMSTOP.
Ismail Vali, the founder and CEO of Yield Sec, expressed his concern, saying, “Our surveillance highlights the disturbing and cynical growth of a certain type of illegal operator present in the UK over the past three years.
The evidence of illicit gambling options that seek to cynically work around and enable vulnerable problem gamblers to avoid GAMSTOP self-exclusion is distressing and demands immediate and meaningful intervention.”
In response to these findings, Vali has called for increased resources dedicated to preventing illegal gambling, emphasizing the need for greater collaboration between regulators, legal operators, and law enforcement to crack down on these illicit operators and safeguard vulnerable players.
Yield Sec’s “stark warning” coincides with the release of the UK’s White Paper in April 2023, which pledged to enhance regulatory powers to combat illegal gambling.
However, some industry experts, like David Brown, caution that the affordability checks proposed in the White Paper might inadvertently drive vulnerable players towards the black market.
Brown suggests that a coordinated industry effort is essential to identify and prosecute illegal activity effectively.
He advocates measures such as geo-blocking and strict advertising restrictions to deter illegal operators and protect consumers.
The issue of illegal gambling is not unique to the UK, as both Germany and France grapple with similar problems.
In Germany, nearly half of all online gambling occurs with unlicensed operators, while the black market generates three-quarters of the revenue.
France’s black market is estimated to be worth up to €1.5 billion, accounting for over 10% of the total bets placed annually.
Regulators in both countries are intensifying efforts to combat these challenges through increased collaboration and public awareness campaigns.