Social media and streamers driving black market uptick, says Deal Me Out report
The black market report by gambling harms awareness organisation Deal Me Out was published on 9 April. It included responses from more than 1,250 children, 300 adults and 10 gambling content creators in the UK and found significant numbers of gamblers are being driven to unregulated gambling platforms by social media influencers and friction created by heightened regulations.
The report found up to five million clicks across social media each month were directed to black market sites via affiliate links posted by streamers and influencers.
These influencers are also giving advice on how to approach black market sites by using VPNs and avoiding tracking.
The report found 90% of responding content creators said they used the online crypto betting platform BC Game, a platform no longer licensed in the UK via a white label agreement. It exited Curaçao in December when a local court declared it bankrupt after failing to pay players funds they were owed.
One creator surveyed in the report, who actively promoted the site in their stream, was found to be telling viewers: “As always guys, if you want to play on BC Game and support me as a gambling content creator, and if you want your quick spins, your auto plays, your bonus buys, no ID checks, no verification and full player protection, then make sure you sign up via gamblersden.com, or use the link down below.”
High numbers of underage users on the black market
A significant number of underage users may also be caught up in illegal online gambling, the report suggested.
Deal Me Out has estimated that as many as 420,000 underage school children may be using black market gambling sites, with a particular inclination towards loot boxes and in-game currencies in video games. The report noted that younger gamblers were also more likely to favour crypto gambling sites, which are not legal in the UK.
One young person interviewed said they had started gambling at 14 years old.
“It was social for me. My friends and I would come home from school, jump on Discord and watch each other gamble. We’d also be gambling with our gaming friends from the US, South America and Asia. There is something quite appealing, sitting next to your friends on a virtual table,” said an interviewee identified as MT.
The proliferation of underage gambling has been widely reported. An Irish report by the Institute of Public Health in 2023 found that roughly one in four 16-year-olds had gambled for money. Of those surveyed who gambled, 10% reported that they had done so excessively.
Frustrations with Gambling Commission regulations
The UK’s gambling industry is undergoing a regulatory reform, following the review of the Gambling Act and subsequent white paper in April 2023.
Reforms include mandatory deposit limits for first-time depositors and spin stake limits on slots of £5 for those 25 and older and £2 for adults aged between 18 and 24.
Deal Me Out reported that consumers have expressed concerns about giving more personal information to operators, as well as frustration with the loss of content such as bonuses and turbo spins.
As a result, some gamblers are choosing to use global black market sites to avoid friction and regulation.
The organisation has warned that using “disruptive methods alone against black market operators does not effectively address the problem”.
It noted that cease-and-desist letters to criminals and offshore payment providers can create games of “whack-a-mole” as mirror sites often appear whenever a site is blocked or called to be taken down.
Public awareness of what sites and verticals are illegal is lacking, as the report found that “people that gamble and those that don’t are equally unable to tell what is regulated and what is not”.
Influencers and content creators need black market games
Online content creators and influencers have admitted they are increasingly moving to play on illegal products.
“Regulation has forced our hand; if we don’t use crypto casinos we just can’t compete,” a YouTube content creator said within the report.
“Our viewers want to watch bonus buys, turbo spins, high rolling content, something we just can’t do in the UK anymore. I understand why the Gambling Commission has put these rules in place, we should do everything we can do protect people from addiction, but creating a poor consumer experience will only lead to the black market [increasing].”
A TikTok creator added: “Just look at content creators in Germany, France, Belgium – they’re all using crypto casinos. Americans, Canadians, Australians too. Show me a streamer that’s using UK regulated websites to create content and I’ll show you a fool.”
Deal Me Out calls for action against black market
Deal Me Out has recommended that the government and regulator take action on a number of risks to the public.
It has called for an “urgent review” of crypto gambling to prevent global blockchain operators from connecting with UK citizens, in particular underage gamers.
A preventative information campaign should also be undertaken to educate the public about the black market, fake games, payment refusals and the criminal activity associated with both.
Deal Me Out said it was “increasingly concerned” that people with gambling addictions will be “disproportionately” thrust towards the black market by further regulations.
The charity said it is not arguing against slot limits and affordability checks but is urging policy makers to consider the impact of regulation.
According to a similar report published by the Betting and Gaming Council (BGC), gamblers in the UK stake roughly £2.7 billion ($3.4 billion/3.1 billion) with black market operators annually.
Of those who played on both legal and illegal platforms, the BGC found that 12% of the money was spent with illegal operators, totalling £2bn a year. Those that exclusively used illegal sites spent £695m annually.