Initial literature review into unregulated and unlicenced gambling on the dark web

INTRODUCTION

This literature review introduces the unregulated and unlicensed ecosystem of gambling on the Dark Web. It is the first of two reports that will be published over the next few months. Conducted over a two-week period, this desktop literature review aims to (i) shed light on the challenges of researching the Dark Web and (ii) provide an overview of gambling within the Dark Web, based on existing literature.

The report is a summary study of the published research available, with the aim of providing a common level of understanding for readers. It has been written without accessing the Dark Web itself. A total of twenty-one research reports were carefully examined, all of which are listed in the references section of this paper. ​This literature review has found that Dark Web gambling is a complex and intriguing issue. It exists in a parallel world that offers a wide range of casino-style games like poker, blackjack, roulette, sports betting, lottery, fruit machines, sweepstakes, and video game contests. The literature review has found that Dark Web gambling site users are a diverse group, including those seeking anonymity, those circumventing local gambling laws, and even professional gamblers excluded from regulated sites.

UNDERSTANDING THE LAYERS OF THE INTERNET

The Internet, a multifaceted system, is organised into three distinct layers: the Surface Web, the Deep Web, and the Dark Web. Each layer possesses its unique attributes and accessibility, contributing to the intricate web of information, products and services that make up the Internet.

Reports vary, but approximately 5% - 10% of the internet is readily observable as the Surface Web. The deep and Dark Web is closed from access using standard browsers (such as Google, Firefox, Microsoft Edge, etc.); instead, users need additional configurations or specific browsers to access Deep or Dark Web content.

THE DARK WEB

The Dark Web is defined as a layer of information and pages that you can only access through so-called ‘overlay networks’, which run on top of the normal internet and obscure access. You need special software to access the Dark Web because it is encrypted, and most Dark Web pages are hosted anonymously. This part of the internet also makes up approximately 5% of the total internet, which is interesting because it is almost as much as the Surface Web, which gives you a feel for the potential size of the Dark Web.

DEMOGRAPHIC OF DARK WEB USERS

The Dark Web market is valued at around $1.7 billion in 2023 and is expected to grow to over $3 billion by 2027 and almost $9 billion by 2032. This represents a compound annual growth rate (CAGR) of approximately 21% from 2023 to 2032. The characteristics of Dark Web users are also diverse. They may include technology experts, privacy defenders, political activists, government agencies, as well as sellers and buyers of illegal products or services (such as gambling).

DARK WEB CONTENT

A study by Gareth Owen of Pourtsmouth University discovered that content on the dark web was dominated by: 

Illegal pornography, black markets, hacking groups and botnet operations (those commonly associated with spam, fraud and malicious attacks).

CONCLUSION

This desktop analysis has been a useful first step in understanding the literature. This analysis highlights there is limited literature, but equally, it paints what appears to be a concerning picture of gambling on the Dark Web.