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New gambling study challenges beliefs about black market betting

Research shows most punters using unlicensed sites also stick with legal bookmakers.

Written by the BettingEdgeHub desk, 3 November 2026

Recent data from the Gambling Commission challenges long held assumptions about the illegal betting market in the United Kingdom. Regulators and industry experts previously believed that punters who used unlicensed operators completely abandoned legal sites. However, recent bank transaction tracking reveals a significant overlap between the two groups.

Overlap between legal and illegal sites

Experts discussing the findings noted that ninety one percent of punters with repeat transactions on unlicensed sites also gamble with licensed operators. This completely undermines the warning from operators that players leave the regulated sector entirely when visiting offshore sites. Instead, many punters use both legal and illegal platforms.

Problem gamblers and offshore risks

The data also highlights a concerning trend regarding player protection and risk profiles. Nearly half of the individuals scoring eight or more on the Problem Gambling Severity Index transacted with the illegal market. This suggests that problem gamblers form a core customer base for offshore firms, potentially including self excluded players using brands not signed up to national exclusion schemes.

Limitations and next steps

Analysts pointed out that the methodology relies on a small sample size of bank transactions rather than large surveys, offering real world financial data. Experts agreed that the next step requires understanding why punters use these sites. Blocking payments alone will not treat the underlying issues driving players toward offshore operators.