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Report

Illegal online gambling - Phase 2: Identifying indicators of consumer engagement with illegal gambling websites

The Gambling Commission's report on the second phase of the Consumer Voice illegal gambling project.

Conclusions

Phase 2 of this research validated the findings from the first, qualitative-focused Phase, which found 4 key audience groups that engage with the illegal market:

  • self-excluders
  • skilled advocates
  • social explorers
  • accidental tourists.

Additionally, outside of the scope of the illegal market, this study included non-users and/or non-engagers, who were notably the largest group of respondents.

Based on earlier work, an ongoing hypothesis for this phase was that many individuals who gamble that have self-excluded online do continue to gamble online, with access being the primary motivator (that is, being able to circumvent gambling blocking schemes or software that they have in place). This is a small proportion of individuals who gamble online (with 4 percent having been able to gamble online with their own account while signed up to GAMSTOP), but a significant contributing factor to the online illegal market, nonetheless.

This group are particularly vulnerable to explicit illegal marketing that focuses on ‘not being on GAMSTOP’; indeed, in this study, social media was more likely as an entry route among those that had self-excluded previously using GAMSTOP (55 percent), highlighting the validity of concern around targeted gambling advertising.

Qualitatively, skilled advocates were grouped as such due to their more in-depth participation in the online illegal market. They enjoy the variety of games and bets on offer in this market and are consciously aware that they are using a website that does not have a licence to operate from the Gambling Commission. Again, this is a relatively small group but an important one in understanding the audience types within the illegal market. The group pose an interesting challenge for quantitative research, as issues with self-reporting, both in terms of readiness to admit engagement with an illegal operator, and ability to recall specific operators, pose especially heightened challenges.

Skilled advocates typically engage in conversations with other like-minded individuals who gamble, using forums, social media and word of mouth recommendations when choosing a website to gamble with.

Social explorers were hypothesised to explore illegal websites to build bonds with family or friends based on shared interests, and trial new companies to test their odds and offers and share more widely. This was demonstrated in the second phase of the research by the higher proportion of illegal gambling website users (13 percent) that were motivated by playing or discovering new games (compared to 5 percent of the total sample). Websites’ licensing status was often not considered as a part of their decision, based on the qualitative evidence. However, social explorers did exercise caution when trying new – often illegal – websites, due to an acknowledgement that it is not as ‘safe’ of a market; generally placing lower bets and stakes as part of their exploration.

However, while licensing status is not often explicitly considered by social explorers and accidental tourists, or amongst individuals who gamble online in general, respondents agreed it is important that operators have a licence to operate in Great Britain (87 percent), with 4-in-10 (43 percent) thinking rules on gambling in Great Britain are currently at an appropriate level, and a further half (47 percent) thinking there should be more rules in place.

In this phase of the research, the hypothesis that engagement with illegal gambling websites is typically supplementary rather than exclusive was supported, with most illegal gambling website users reporting favouring spending time or money on licensed websites rather than on illegal websites. No respondents reporting gambling solely on illegal websites indicates that even those who engage with illegal markets still primarily used licensed operators for most gambling activities.

Based on this evidence and the ongoing qualitative hypothesis, there looks to be a disconnect in individuals who gamble online, between the perceived importance of operators being licensed, and an actual understanding of whether or not operators hold this licence, and how this can be verified. This lack of comprehension was also shown in survey verbatim responses after respondents were asked to name illegal websites they had used, with a minority able to name an illegal website, and numerous respondents mistakenly naming legitimate, licensed operators.

Finally, accidental tourists were thought to prioritise quick wins, better odds, and Return to Player (RTP) percentages; their approach to choosing where to gamble was as such driven by these factors, rather than novel gameplay or a need to avoid gambling blocking schemes or software, demonstrated in the aforementioned audiences. Again, as with social explorers, websites’ licensing status was not a factor in their website choice. In this phase of the research, this is demonstrated by illegal gambling website users not only being more likely to be motivated by avoiding GAMSTOP, Gamban or bank blocks, but also by higher Return to Player (15 percent, compared with 9 percent of total sample) or finding websites that do not require age or identity verification (12 percent, compared with 3 percent of total sample).

Ultimately, there is a distinct group for which illegal gambling website usage is an extension of their current gambling activity; it offers them new experiences or higher returns. For others, however, it potentially provides an environment in which those at greater risk of gambling harm can circumvent prevention measures used in the licensed market. There does not look to be a single demographic at higher risk, with the profile of illegal gambling website users largely being a magnification of the known profile of online gamblers: namely, men, young people, and those with greater frequency of gambling engagement.

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Findings - Illegal online gambling: Phase 2
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Next steps - Illegal online gambling: Phase 2
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