UKGC says UK gamblers using illegal sites are seven times more likely to show problem gambling

New UK Gambling Commission (UKGC) research says people who use illegal gambling websites in the United Kingdom are seven times more likely to experience problem gambling than those who use legal sites. For PSPs, the important part is not the headline number alone, but the mechanics: illegal play is showing up alongside regulated play, and the payment trail is messy enough to make attribution difficult.

1. The UKGC used the Problem Gambling Severity Index (PGSI), a standardized scale for assessing problem gambling severity, and found that only 6% of people who visited legal websites experienced problem gambling, compared with a much higher rate among those who engaged with illegal sites.
2. The study covered banking transactions recorded between July 2018 and July 2026 and analyzed 157.2 million banking transactions, estimating 38,000 individuals. The regulator described it as one of the most complete attempts so far to understand gambling behavior through payment data.
3. The UKGC stopped short of saying illegal gambling directly causes greater overall gambling harm. That distinction matters: the research points to stronger association, not a clean causal conclusion.
4. Among people who visited illegal gambling websites, 91% also placed wagers with licensed companies. The report also says these users did not stop gambling with licensed platforms, which suggests illegal sites are being used alongside regulated ones rather than simply replacing them.
5. The watchdog identified 122 individuals and at least two who placed transactions with illegal gambling websites. In total, around 3,426 transactions involved gambling and 179 individuals, and the UKGC noted that deposits after detection remained stable in the months that followed.

The practical takeaway for high-risk payment providers is simple enough: the UKGC is treating illegal gambling as a payments-and-patterns problem as much as a licensing problem. The report also underlines how hard it can be to trace illegal gambling transfers through conventional bank payments, with the limitations becoming even more pronounced when cryptocurrencies are involved.