The growing threat of black market gambling in the UK

Written by David Gravel

A new report reveals the dark trends driving the rise of black market gambling in the UK. In partnership with Social Intent, the Deal Me Out Black Market Evaluation Report pulls back the veil on the unregulated gambling world. The findings expose a chilling reality, with vulnerable groups, including children and those battling gambling issues, turning to illegal platforms for refuge.

What the black market evaluation report reveals

With data from 1,250 children, 300 adults, and 10 gambling content creators, the report uncovers a dark shift toward unregulated platforms. Influencers, aggressive marketing, and poor awareness are all helping to drive this trend.

One of the most concerning statistics from the report is that over 420,000 schoolchildren in the UK may be engaged in unregulated gambling. This is compounded by the fact that 67 percent of individuals who have voluntarily signed up for the Gamstop self-exclusion programme reportedly use black market platforms to bypass restrictions.

The rise of crypto casinos and fake games

A big reason people are turning to the illegal gambling market is the rise of crypto casinos and fake games. These sites feel anonymous. They look risk-free. And they let players dodge the usual rules that come with regulated gambling. The report shows how influencers are pushing these platforms hard, with some racking up over a million views in just one month.

The growing threat of black market gambling is becoming more pronounced, as highlighted by SiGMA News in a recent article about a lawsuit against Stake in Illinois, which sheds light on how legal frameworks worldwide are struggling to keep up with this growing threat.

A spokesperson from Deal Me Out, Jordan Lea, commented:

“We are seeing a significant rise in crypto casinos, fake games, and VIP schemes promoted by influencers who bypass UK regulations. The consequences of well-intentioned regulation must be considered carefully, or we risk pushing vulnerable consumers straight into the arms of the black market. Regulation is important but must be highly scrutinised.

Social media influencers driving the growth

Behind the glossy filters and fast wins, influencers are the new gatekeepers opening the doors to a gambling underworld hidden in plain sight. The Black Market Evaluation Report found that 84 percent of content creators reviewed were promoting black market sites.

With over a million views in one month, a single influencer showed just how far and how fast unregulated content can travel and how central influencers are to the problem.

Influencers, often with large, impressionable audiences, have the power to sway their followers towards illegal gambling platforms. The rise of social platforms such as Instagram and YouTube gives influencers a way around traditional advertising rules. This allows them to reach at-risk audiences with little to no oversight.

This has led to calls for stronger regulations, with countries like Brazil proposing restrictions on influencer advertising for unregulated gambling platforms to curb their influence on vulnerable groups.

When the system fails the people it’s meant to protect

What was meant to protect may be what drives them away. The report hints at a system so tight it squeezes players into the arms of the black market. Matthew Hickey, for Social Intent, explained:

“This report provides a much-needed update on the impact that the black market has on those living with problem gambling harms. The impact that over-regulation can have on driving people into the Black Market, further away from help and support that is on offer currently, is evident in this report, and something that we must stop happening.”

The report suggests that while regulation is vital, its current form might be part of the problem. Created to shield the vulnerable, tools like Gamstop and deposit caps may now be the very paths that lead them deeper into the shadows they were meant to escape. The allure of unregulated platforms, more freedom, bigger rewards, and total anonymity are proving too strong for many.

This creates a damaging feedback loop. People try to opt-out or limit their play, but frustration pushes them toward riskier choices. The result? Greater harm, not less.

Why players can’t tell what’s safe anymore

One of the report’s clearest insights is this: most consumers can’t tell the difference between licensed and unlicensed platforms.

That lack of clarity is dangerous. And just like that, the scammers, the chancers, and the smooth talkers are ready to clean up while no one’s watching. Many gamblers can’t tell the difference between licensed sites and black market operators, and that confusion leads them into riskier territory with fewer protections.

The report also shows that survey participants reported more than £10 million in deposits, with widespread issues of withheld winnings, scams, and fake games. These platforms take advantage of unsuspecting consumers, masking risk behind a false sense of security while dealing in fraud.

Is it time for an overhaul of regulations?

The black market’s on the rise. If that isn’t a wake-up call for UK regulators and politicians, what is? With Gamstop routinely bypassed, crypto casinos are spreading in the dark, led by influencers who turn risk into routine and chaos into clicks. Regulation is essential. But it needs updating, and often, to keep up with the growing lure of illegal gambling.

The report’s authors highlight how important a more focused and robust education campaign is. Young people need to understand the risks of using unregulated gambling sites. It’s vital that people can easily distinguish between safe and unsafe gambling options to protect those most at risk.

Iris den Boer, Head of Public Affairs at Deal Me Out, acknowledged the crucial contributions of young people, individuals with lived experience, and content creators, whose voices have helped illuminate the dark truth within this report.

“This report is a landmark moment for Deal Me Out, and we are incredibly proud of the collaboration and dedication that made it possible. We want to offer our heartfelt thanks to the young people, individuals with lived experience, content creators, and everyone who gave their time and voices to this work. Your input is not only valued, it’s essential. Together, we’re helping shape a safer, better-informed future for everyone affected by gambling harm.”

It’s time for action

The Deal Me Out Black Market Evaluation Report shines a light on the growing crisis of illegal gambling in the UK. Vulnerable groups, including children and problem gamblers, are at risk.

We need urgent action. Time is running out. Politicians and regulators must act now and better educate the public before it’s too late because the illegal market is more than a pit of lost cash. It’s a trapdoor to stolen identities, leaked data, and a slow descent few see coming until it’s too late.

As Jordan Lea stated, “Regulation is important, but it must be highly scrutinised to avoid pushing vulnerable consumers into the arms of the black market.” This report acts as a wake-up call, pushing regulators and the public to scrutinise the real-world impact of gambling policies on UK consumers’ safety.

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