UKGC report on British gamblers using non-UKGC online casinos for crypto payments, better odds, and bypassing gambling restrictions

The UKGC carried out a survey on why players in the UK access black-market online gambling sites – I break down the stats and give my opinion.

The UK Gambling Commission has opened up a new research that assesses consumer Behavior when it comes to gambling on the UK Black Market.

With the evolving threat of the growth of overseas online casinos, or shall we say non-UKGC casinos, the UK’s regulatory authority has initiated new research to learn more about why citizens choose to engage or risk gambling on sites that do not offer players protection under British gambling laws.

I must admit after as a UK online Gambler and UK citizen, and someone who knows people who do partake in crypto gambling, that overseas online casinos, due to the fact that cryptocurrencies are not accepted by UK gambling platforms, I was very surprised about the survey results.

What is the UK Online Gambling Blackmarket?

For those of you who are not aware of the UK online gambling black market, it is basically players who join, unlike casinos that do not hold a licensed certificate with the British regulatory Authority.

We have covered the black market extensively here on Casinoplusbonus, particularly in the white paper.

We have also reported that if the UK government increases taxes on the gambling industry. Higher taxes, in our opinion, would inevitably lead to more people heading to overseas online casinos.

The reasoning behind this line of thought is that UKGC casinos will likely lack the financial resources to offer British players gambling services that provide value for their money due to high taxes, something that overseas casinos are not burdened with.

Source of the information used to create this new report – UKGC illegal gambling market consumer behaviours report.

UK Player Motivations for Using Blackmarket Sites

One of the sections I focused on was why players in the UK choose to gamble at overseas black-market casinos. Here are some of the reasons provided:

  • Unaware the Site is not UKGC Licensed: A stat that I am quite surprised about is that quite a few players in the UK have said that they do not know the difference between an online casino license by the UKGC and one that isn’t, and they don’t know how to check.
  • Cryptocurrency: I am not in the least bit surprised that some players want to gamble using crypto. As there are no online casinos or sportsbooks in the UK that accept any form of cryptocurrency, players choose to play on the black-market sites that offer crypto deposits and withdrawals.
  • Larger Selection of Games: One reason is because of the higher number of games available is basically because overseas sites tend to have more software providers.
  • Improved Bonuses & Odds: Better bonuses and odds for sports betting, as well as advanced offers and, of course, cryptocurrencies, which I was already familiar with.
  • Freedom to Bet Without Limits: As the UK has maximum bet limits in place on games like online slots, as well as spending caps on some accounts due to affordability checks, some players choose to gamble on non-UKGC casinos to avoid these restrictions.
  • Anonymity: Some players prefer to play on sites that do not require KYC checks.
  • Bypass GAMSTOP: Then there are those players who have self-excluded, but later decided they want to gamble. By playing at an overseas casino, they can bypass GAMSTOP.

Key Motivations and Demographics From the Report

Motivation/Demographic Key Insights
Low awareness of legality Most respondents could not identify illegal sites; many mistakenly named licensed ones.
Primary activities Football betting, bingo, slots, and virtual gaming.
High-risk demographics Men, 18–24, frequent gamblers, PGSI 8+.
Top drivers Better odds, more games available, cryptocurrency, avoiding limits, and bypassing GAMSTOP self-exclusion.
Use pattern Illegal play supplements legal play / no exclusive illegal users reported.

One point specifically made was that although players use overseas online casinos and sportsbooks, no respondents reported exclusive use of illegal platforms.

What Gambling Activities Do Players Engage in on Black Market Sites?

The activities consumers engaged in on illegal websites were very similar to those offered on licensed platforms.

The most popularly mentioned were:

  • Football betting
  • Online bingo
  • Online fruit machines
  • Virtual games. The demographics of those who gamble on non-UKGC websites tend to be the same as those of UK citizens who gamble on sites regulated within the UK borders.

Demographics: Men make up the majority of players and are 18–24, as well as frequent gamblers and individuals with higher Problem Gambling Severity Index (PGSI) scores of 8 or above.

Four Key Audience Profiles

Alongside broad motivations, the report identified four distinct audience groups who use illegal gambling websites. Each profile reflects different levels of awareness, pathways into the market, and reasons for participation.

  • Self-Excluders: Self-excluders are individuals who have voluntarily blocked themselves from UKGC-licensed platforms via GAMSTOP but still find ways to gamble. As GAMSTOP prevents players from joining any UK casinos after being active, they choose to sign up to a non-UKGC site. As a result, it is fair to say that for this group, the use of unlicensed sites is tied directly to their inability to access regulated operators.
  • Advanced Players: Experienced online gamblers are fully aware of the risks yet deliberately choose to gamble on non-UKGC online casinos and sports books. They said that they chose to take the risk due to better odds, new game types, cryptocurrency payment options, and sites with minimal verification. They often discover unlicensed operators through social media influencers, gambling communities, or word-of-mouth recommendations from like-minded individuals.
  • Social Explorers: Social explorers come across non-UKGC sites through friends, affiliate links or online communities. Their focus is on shared experiences and securing better odds, rather than consciously seeking out unlicensed platforms. While some are unaware they are engaging with sites not protected under UK laws, they tend to be cautious by testing platforms with small stakes before depositing larger amounts.
  • Accidental Tourists: Accidental tourists stumble onto unlicensed websites without realising their status, often through search results, advertisements, or recommendations tied to their hobbies. Their motivations centre on accessing better return-to-player percentages, more betting markets, or odds for international sports. Many in this group admitted that they did not consider whether a site was licensed, assuming legitimacy until they were informed otherwise.

Casinoplusbonus Opinion

Well, carrying out this study of the UKGC report, one thing I couldn’t help but notice was a constant mention of illegal websites.  I’ve changed that to non-UKGC websites because it is, in fact, not illegal for you to play on any of these gambling platforms. Just to be clear, I’m sticking to the facts. I do not advocate players in the UK playing on sites that do not protect them under domestic gambling laws.

As for the reasons provided, why people gamble on sites not operating under the UK Gambling Commission, some were a surprise, for example, not understanding the licensing well, there are plenty of points made that, without sounding big-headed, I could have already told you. The UK should encourage UKGC casinos to adopt cryptocurrency. I think that would be a massive step forward in reducing the number of people playing at Black Market online casinos.

As for those seeking a larger selection of games, that’s fair enough; however, at least with the UKGC, you know that under the strict gambling laws, every Spin and every game you play comes with legal protection in case of unfair results, and all these games are tested thoroughly By An approved algorithm testing company.

For more on the UK’s iGaming market, head over to our British online gambling guide, where you will find UK casino reviews as well as the latest gambling news for Great Britain.

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