Open Banking Study: 91% of Repeat Black Market Bettors Also Use Licensed Sites

The Gambling Commission's first open banking study has found that 91% of repeat users of illegal gambling websites also continue to bet with licensed operators. This finding directly challenges the industry's argument that higher taxes drive players to unlicensed offshore sites.

The study, which used open banking data to track payment flows, connects unlicensed platforms to a significant concentration of gambling-related harm. It provides new insight into the behavior of black market users and their interactions with the legal gambling market.

The data complicates the industry's narrative that tax increases simply push bettors offshore. Instead, it suggests that many users engage with both legal and illegal sites, undermining claims that licensed operators lose customers to the black market solely due to tax differences.

The Gambling Commission's research marks a significant step in understanding the black market. By analyzing payment data, the regulator aims to quantify the scale of unlicensed gambling and its relationship with the licensed sector.

The findings may influence future regulatory and tax policy discussions, as they indicate that the relationship between licensed and unlicensed gambling is more complex than previously thought. The study underscores the need for a nuanced approach to tackling gambling harm.