Illicit Crypto Gambling Platforms Exploit UK's Self-Exclusion List
In the United Kingdom, a growing concern has emerged regarding the illegal gambling market and its impact on vulnerable players. A survey conducted by Yield Sec, a leading company in the industry, suggests that approximately GBP 583 million is wagered illegally in the country alone.
Ismail Vali, the Founder of Yield Sec, argues that this market preys on the most vulnerable players, including those under 18 and those registered on the GAMSTOP self-exclusion scheme. Derek Webb, Founder of the Campaign for Fairer Gambling, shares a similar view, stating that the illegal market is focusing on targeting people who have self-excluded and are seeking to play at "casinos not on GAMSTOP."
The illegal operators thrive in the shadows, paying no tax, contributing nothing to British sport, and offering no safer gambling protections. This is a stark contrast to the regulated market, where operators are held accountable for their actions and contribute significantly to the economy.
Offshore and unauthorized operators understand that going legal is too expensive, so they fund their operations through illegal gambling activities. The government's focus on ensuring the regulated market sticks to the rules seems to have left a gap for the illegal market to exploit.
The Betting and Gaming Council (BGC) has warned about an increasing number of illegal gambling websites operating in the UK. Grainne Hurst, CEO of the BGC, stated that a wrong balance on tax and regulation would give an advantage to the black market. According to a BGC survey, 14% of respondents currently gamble with illegal operators, with 29% unsure if they could tell regulated from unregulated operators.
These illegal websites use cryptocurrency to evade detection, making it difficult for authorities to track and control their activities. The share of the illegal gambling market in the total industry in the UK grew from 0.43% in 2020 to around 9% through the use of keywords such as "not on GAMSTOP" to target self-excluded players.
Mainstream consumers have no reason to use illegal gambling operators, but they are targeted by these operators due to their vulnerability and self-exclusion status. The illegal gambling market is actively seeking to harm vulnerable players by targeting them through services such as "casinos not on GAMSTOP."
It is crucial for the government and regulatory bodies to address this issue and protect vulnerable players from the harms associated with the illegal gambling market. A balanced approach to taxation and regulation is needed to level the playing field and prevent the black market from flourishing at the expense of the most vulnerable members of society.
