UKGC Issues Warning on Licensed Games Found on Illegal Gambling Sites

The UK Gambling Commission (UKGC) has raised concerns about licensed casino games being found on unauthorized websites accessible to consumers in Great Britain. This issue is seen as a major challenge in the Commission’s efforts to prevent gambling from becoming a source of crime and to curb illegal operations at scale.

Recent industry data released by the UKGC provides insight into the current state of gambling in Great Britain. As the Commission continues to address both regulatory compliance and market trends, operators are encouraged to take proactive steps to align with evolving legal requirements and protect the integrity of the gambling industry.

Risks Associated with Illegal Gambling Markets

Unlicensed gambling websites do not offer the same consumer protections required of licensed operators in Great Britain. These platforms frequently target vulnerable individuals, including those who have self-excluded through the GAMSTOP scheme.

Without adequate social responsibility measures and anti-money laundering (AML) controls, consumers using these sites may face significant risks such as fraud, privacy breaches, and unfair gaming practices.

The UKGC is calling on licensed operators to take decisive action in addressing this issue. It has been identified that some licensed operators’ games are being resold through third-party distributors to illegal markets, often in violation of their contracts. Failure to prevent such occurrences can jeopardize an operator’s license, placing their business at significant risk.

Operator Responsibilities and Regulatory Actions

The Commission urges operators offering Business-to-Business (B2B) gaming solutions, including live games and slots, to actively monitor their partnerships. It recommends that operators ensure their partners are not facilitating access to the GB market through illegal means. Any evidence of non-compliance should result in the immediate termination of the business relationship.

Additionally, the Commission expects licensees to report any identified issues and provide a clear action plan to mitigate further risks. Timely communication with the Commission is a minimum requirement to demonstrate compliance efforts.

To strengthen enforcement, the Commission may conduct test purchasing activities to compliance and gather evidence of potential breaches. Operators found in violation may face regulatory actions, which could include penalties or license revocation.

UK Gambling Industry Statistics for November 2024

As shown in the report from November 2024, the total gross gambling yield (GGY) for the period from April 2023 to March 2024 reached £15.6 billion, reflecting a 3.5% increase from the previous year and a 10.2% rise compared to pre-pandemic levels.

The remote casino, betting, and bingo (RCBB) sector ed for £6.9 billion of the total GGY, marking a 6.9% increase year-on-year. Online casino games contributed £4.4 billion, with slot games alone generating £3.6 billion. Remote betting generated £2.4 billion, driven primarily by football and horse racing.

In contrast, the land-based gambling sector recorded a GGY of £4.6 billion, showing a moderate 3.8% increase from the previous period. The number of betting premises continued to decline, with 5,931 locations in operation—a 1.4% drop from the previous year and a significant 22.8% decline from pre-pandemic levels.

The National Lottery’s contribution to good causes totaled £1.6 billion, representing an 8.0% decrease compared to the previous year. Meanwhile, large society lotteries saw an increase in ticket sales and contributions, with a total of £461.5 million allocated to good causes, a 9.4% rise from the previous period.

Source:

“Industry warning notice: licenced software appearing on illegal market”, gamblingcommission.gov.uk, January 20, 2025.