TLDR
- Illegal gambling users in Britain are more than 7 times as likely to show problem gambling behavior.
- 45% of illegal site users scored 8 or higher on the PGSI, compared with 6% of licensed customers.
- 91% of repeat illegal site users also gambled with licensed operators.
- The UKGC said the data does not prove illegal gambling causes greater harm.
- The study analyzed 157.2 million banking transactions from about 38,000 people.
Gamblers who use illegal betting websites in Britain are more than seven times as likely to show signs of problem gambling as those who use licensed operators. The finding comes from new research published by the UK Gambling Commission (UKGC).
The study was reported by Yogonet on November 2, 2026. It is based on open banking data that tracked thousands of people over several years.
Problem Gambling Scores Show a Wide Gap
The research found that 45% of illegal gambling users scored eight or higher on the Problem Gambling Severity Index, known as the PGSI. Only 6% of licensed gambling customers reached that level.
A score of eight or above on the PGSI points to problem gambling behavior. It is the highest risk group on the scale.
The study also looked at people at moderate risk. It found that 17% of illegal gambling users scored between three and seven, compared with 9% of licensed customers.
The regulator was careful about what the numbers mean. It said the findings did not show whether illegal gambling directly causes greater gambling-related harm.
Illegal Sites Used Alongside Licensed Ones
The research found a large overlap between regulated and unregulated gambling. Of the people who repeatedly paid illegal operators, 91% also gambled on licensed platforms.
“Illegal gambling is embedded within existing gambling behavior rather than triggering a sustained shift away from the licensed market,” the report concluded. This means most bettors did not leave licensed sites to bet only on illegal ones.
To test this, researchers studied 122 people who had at least two detected illegal gambling transactions. They compared each person’s licensed betting before and after their first known illegal payment.
These people made an average of 24.8 licensed gambling transactions in the month before that first illegal payment. In the month after, the average was 23.7 transactions.
The regulator said this small change suggests illegal sites were used next to regulated operators. The illegal sites did not replace the licensed ones for these bettors.
The findings came from an analysis of 157.2 million banking transactions. The data covered about 38,000 people across Britain.
The financial tracking data was provided by YouGov. It covered an eight-year period from July 2018 to July 2026.
Researchers identified 3,426 suspected illegal gambling transactions in the data. These payments involved 179 people.
The UKGC admitted there were serious limits to finding payments made to unlicensed operators. Banking data alone does not always make clear where money is going.
Early attempts to spot illegal transactions used the names of known illegal operators. This approach produced limited results because these businesses rarely appeared under their real names in banking records.
Investigators then turned to merchant categories and transaction codes instead. They used these details to trace the suspected illegal gambling payments.
