Social media and streamers driving black market uptake

A recent report by the gambling charity Deal Me Out has revealed a troubling trend: UK gamblers are increasingly turning to unregulated black market platforms due to rising barriers on licensed gambling products, the absence of legal cryptocurrency options, and the influence of social media personalities promoting illegal gambling sites.

This black market report, published on April 9, assessed responses from over 1,250 minors, 300 adults, and 10 gambling content creators within the UK. The findings indicate that a considerable number of gamblers are being pushed towards unregulated online gaming environments, significantly driven by social media influencers and the increasing regulatory friction in the market.

Remarkably, the report states that social media channels generate up to five million clicks each month directing users to illicit gambling sites through affiliate links posted by popular content creators.

Additionally, these influencers are advising their audiences on how to navigate the black market, including using VPNs to avoid detection and circumvent restrictions.

Notably, 90% of the content creators surveyed reported engaging with the online crypto betting platform BC Game, which recently lost its UK license under a white label agreement. The platform exited Curaçao after a local court declared it bankrupt due to unpaid player funds.

One prominent content creator, who actively promoted BC Game, was quoted saying: “If you want to play on BC Game and support me as a gambling content creator, and enjoy quick spins, auto plays, bonus buys, and no ID checks, make sure to sign up via gamblersden.com or use the link below.”

High Rate of Underage Users on Black Market

The report also highlights a disturbing trend involving underage users. Deal Me Out estimates that approximately 420,000 underage schoolchildren may be engaging with black market gambling sites, particularly showing an interest in loot boxes and in-game currencies found in video games. Younger players are reportedly drawn to illicit crypto gambling platforms, which remain illegal in the UK.

One young interviewee shared, “I started gambling when I was 14. It was all about social interaction. My friends and I would log onto Discord after school and watch each other gamble. We also engaged with friends from the US, South America, and Asia while gambling. There’s something appealing about going head-to-head virtually.”

The prevalence of underage gambling is alarming. A report by the Institute of Public Health in Ireland in 2023 indicated that nearly 25% of 16-year-olds had gambled for money, with 10% of these respondents admitting to excessive gambling behavior.

Regulatory Frustrations with the Gambling Commission

The UK gambling industry is currently navigating a wave of regulatory changes following the review of the Gambling Act and the resulting white paper released in April 2023. These reforms introduce mandatory deposit limits for first-time depositors and specific stake caps of £5 on slots for individuals aged 25 and older, and £2 for those aged 18 to 24.

According to Deal Me Out, consumers have voiced concerns over the requirement to provide additional personal information to gambling operators, along with frustration over the loss of features such as bonuses and turbo spins. Consequently, many gamblers are opting for global black market sites as a means to circumvent these regulatory constraints.

The organization cautions that relying solely on punitive actions against black market operators doesn’t effectively resolve the underlying issues. Letters to cease-and-desist from illegal operators or offshore payment providers often lead to a whack-a-mole scenario where new mirror sites swiftly appear in response to takedown efforts.

Furthermore, the report underscores a significant lack of public awareness regarding illegal gambling sites, with both gamblers and non-gamblers equally struggling to identify which platforms are regulated and which are not.

Influencers and Content Creators Turn to Black Market Games

Content creators and influencers acknowledge that they are increasingly gravitating towards illegal gaming products. “Regulation has forced our hand; if we don’t play at crypto casinos, we can’t compete with others,” stated one YouTube influencer in the report.

Another emphasized, “Our viewers want to see bonus buys, turbo spins, and high-stakes content that we can no longer provide under UK guidelines. While I understand the Gambling Commission’s intent to mitigate addiction risks, the resulting decline in consumer experience is merely driving traffic to the black market.”

A TikTok creator further noted, “Look at influencers operating in Germany, France, and Belgium—all of them use crypto casinos. It’s evident that creators from the US, Canada, and Australia are choosing illicit options. Show me a UK streamer solely using regulated sites, and I’ll show you someone out of touch.”

Deal Me Out Advocates for Action Against Black Market

In response to these findings, Deal Me Out has called for immediate government and regulatory action to tackle the multitude of risks posed by the black market. They advocate for an “urgent review” of crypto gambling operations to prevent global blockchain platforms from reaching UK citizens, particularly underage gamers.

A proactive public information campaign is also necessary to educate citizens about black market dangers, including fake gaming sites, payment issues, and the associated criminal activities. Deal Me Out expressed increasing concern that stricter regulations may unintentionally funnel individuals struggling with gambling addictions towards illicit platforms.

The charity clarified that while it opposes neither slot limits nor affordability checks, it urges policymakers to consider the long-term consequences of stringent regulations.

According to a parallel report from the Betting and Gaming Council (BGC), UK gamblers wager approximately £2.7 billion ($3.4 billion) annually with black market operators. The BGC’s findings reveal that 12% of the money spent by gamblers using both legal and illegal platforms is directed towards unauthorized operators, amounting to £2 billion yearly. Those entirely using illegal sites are estimated to spend around £695 million annually.