UK Gambling Commission Examines Open Banking Records to Track Illegal Gambling Patterns

The UK Gambling Commission has published findings from a detailed review of anonymized Open Banking transaction data covering roughly 38,000 individuals between July 2018 and July 2026. Researchers identified 3,426 suspected illegal gambling transactions linked to 179 people within that dataset. The study focused on patterns that distinguish unlicensed operators from those holding proper licences, and it provides concrete numbers on how these activities intersect. Data collection relied on transaction records supplied through Open Banking channels, which allowed analysts to flag payments to operators outside the regulated market. The period examined stretches across eight years, giving a long view of user behaviour rather than a snapshot. Those 179 individuals represent a small slice of the overall sample, yet the transactions they generated stand out because they route funds to sites that operate without UK licences.

Study Design and Scope

Analysts applied filters to isolate payments that matched known characteristics of illegal gambling platforms, such as specific merchant descriptors and routing patterns that avoid regulated payment processors. The resulting 3,426 transactions form the core evidence base. Because the underlying records remain anonymized, individual identities stay protected while aggregate trends become visible to researchers.

Of the 179 people flagged, a subset engaged repeatedly with illegal sites. Among those repeat users, 91 percent also sent payments to licensed operators during the same timeframe. Licensed activity did not show a measurable decline after individuals began using unlicensed sites, which indicates that the two forms of gambling coexist for most participants rather than one displacing the other.

Key Behavioural Patterns

Transaction volumes reveal that illegal gambling typically functions as an add-on rather than a substitute. People who placed bets with unlicensed operators continued their regular activity with licensed bookmakers and casinos at similar levels. This overlap appears consistent across the multi-year window, suggesting that the appeal of illegal sites does not automatically reduce engagement with regulated options.

Problem gambling rates differ sharply between the two groups. Among individuals who used illegal sites, 45 percent recorded a Problem Gambling Severity Index score of 8 or higher. In contrast, only 6 percent of those who restricted activity to licensed operators reached the same threshold. The PGSI scale measures gambling-related harm through a series of validated questions, and scores of 8 or above indicate severe problem gambling.

Timing and Context in Late 2026

The report arrives in November 2026, several months after the final data point in July 2026. Commission staff have noted that the extended observation period captures shifts around major sporting calendars and regulatory changes that occurred during those years. Because the dataset ends in mid-2026, later developments fall outside the current analysis, yet the patterns identified remain relevant for ongoing monitoring efforts.

Researchers cross-referenced transaction flags with publicly available lists of licensed operators to maintain accuracy. Any payment that could not be matched to a licensed entity received further scrutiny for indicators of illegal operation. This method produced the 3,426 transactions now under discussion, each tied to one of the 179 individuals.

Implications for Monitoring

The findings supply regulators with measurable evidence of how illegal gambling interacts with the licensed market. Because 91 percent of repeat illegal users also transacted with licensed operators, enforcement strategies may need to account for users who maintain accounts across both sectors. The absence of a drop in legal activity after illegal engagement begins further suggests that simple substitution effects do not explain the observed behaviour.

Higher PGSI scores among illegal-site users point to elevated harm levels within that subgroup. The 45 percent figure stands in clear contrast to the 6 percent rate among licensed-only gamblers in the same sample, offering a statistical basis for targeted interventions. Commission analysts have indicated that future data pulls will continue to track these metrics as Open Banking coverage expands.

Conclusion

The UK Gambling Commission study demonstrates that illegal gambling activity can be quantified through banking records and that distinct behavioural signatures emerge when compared against licensed play. With 3,426 flagged transactions involving 179 people across eight years of data, the report supplies a factual foundation for understanding overlap, persistence, and associated harm indicators. Continued analysis of similar datasets will allow regulators to refine detection methods and assess whether these patterns hold in subsequent periods.