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New payment data shows punters using illegal betting sites still use licensed operators

Open banking study reveals ninety one percent of repeat black market users continue betting with regulated bookmakers.

Written by the BettingEdgeHub desk, 1 November 2026

Recent figures published by the Gambling Commission offer a fresh look at the unlicensed betting market using open banking payment data instead of traditional surveys. The study highlights that problem gambling scores are much higher among customers who pay unlicensed operators compared to those who stick to regulated sites. While the data relies on a narrow base of open banking accounts and excludes crypto payments, it provides clear spending patterns.

Bettors keep using licensed accounts

The most striking finding reveals that ninety one percent of punters with repeated detected payments to illegal operators also placed bets with licensed bookmakers. Their activity on regulated platforms did not drop significantly after making their first illegal payment. This suggests that punters are simply adding unlicensed options to their usual betting routine rather than abandoning the regulated market entirely.

Searches for sites not on GamStop remain a primary route into the unregulated market, often driven by the appeal of fewer checks and faster withdrawals. The consumer research behind these findings involved thousands of online gamblers, though the regulator notes the panel data is not nationally representative. The report cannot definitively prove that illegal sites cause higher harm or measure the true size of the black market.

The ongoing tax debate

The release coincides with fierce arguments over whether higher taxes push players toward unlicensed platforms. The Betting and Gaming Council argues that increased duties make the regulated sector less competitive and risk thousands of jobs and hundreds of venue closures. Predictions suggest that a large share of online stakes could go to illegal operators by the end of the decade if current trends continue.

The new data complicates the argument for both sides of the industry. Operators can point to the severe harm linked to unlicensed sites as a warning, while campaigners can argue that the overlap shows punters are not leaving the regulated ecosystem. Further tax increases scheduled for April will test these arguments again.