The UK’s gambling watchdog is struggling to track the true scale of illegal betting as more players turn to VPNs to hide their online activity. The Gambling Commission says virtual private networks are making it much harder to monitor unlicensed gambling sites and estimate black market activity.
This challenge comes at a critical time for gambling regulation. As authorities worldwide crack down on illegal operators, understanding the size and behavior of the black market becomes essential for effective enforcement and consumer protection.
Tim Livesley, head of the Gambling Commission’s Data Innovation Hub, revealed that VPN usage spiked dramatically after the Online Safety Bill took effect last year. The legislation pushed many consumers to circumvent online restrictions, creating an unexpected side effect for gambling regulators.
The commission had already built a 30% buffer into its tracking models to account for VPN-hidden traffic. But since July 2025, officials recognize that “a larger proportion of web traffic could be hidden,” making their job significantly more complex.
Data from communications authority Ofcom shows VPN usage jumped sharply in July 2025, then declined but settled at levels roughly 40% higher than before. Digital analytics company Similarweb confirmed this trend, though with a less dramatic initial spike.
The regulatory challenge goes beyond simple numbers. Web traffic estimates help identify trends rather than absolute volumes, but they come with significant margins of error. The Gambling Commission warns against treating any single data source as definitive, yet these estimates remain one of the few reliable indicators of illegal gambling activity.
Recent data reveals fluctuating engagement patterns with unlicensed sites over the past two years, but without clear seasonal trends. An autumn 2024 surge wasn’t repeated in 2025, and overall engagement hasn’t shown consistent growth over 21 months of tracking.
The commission is expanding its data collection methods to get a clearer picture:
- Working with international regulators to verify and improve existing data sources
- Collaborating with licensed operators to identify additional datasets
- Collecting more consumer engagement data through the Gambling Survey for Great Britain
- Generating insights through the Consumer Voice research program
This data challenge reflects broader tensions in digital regulation. As governments implement stricter online controls, users increasingly turn to privacy tools that complicate enforcement efforts. The gambling sector exemplifies this cat-and-mouse dynamic between regulators and both legitimate privacy-seekers and bad actors.
Livesley emphasized that illegal gambling remains a priority for the commission. The regulator plans to publish regular updates on its research methodology and expand its disruption and enforcement activities throughout the year. However, the VPN challenge shows how quickly the digital landscape can shift, forcing regulators to constantly adapt their tracking methods.
The implications extend beyond gambling regulation. As VPN adoption grows across various online activities, regulators in multiple sectors may face similar challenges in monitoring and enforcing digital rules. The Gambling Commission’s experience could provide valuable lessons for other regulatory bodies grappling with privacy tools that complicate oversight efforts.