Black Market Gambling Grows as UK Enforcement Fails to Keep Up

(AsiaGameHub) –   While licensed operators face stricter rules, unregulated gambling sites are taking advantage of gaps in oversight, growing more prominent and difficult to regulate.

The UK is struggling to contain illegal gambling as black market entities outpace enforcement efforts. A new study by fraud expert Alex Wood, backed by Flutter UK & Ireland, reveals that offshore betting platforms remain highly accessible and are frequently advertised in the digital space.

Wood’s research identified significant flaws in identity checks. During trials conducted before the Cheltenham Festival, he successfully opened accounts on several offshore sites using obviously fraudulent credentials.

He utilized the names of prominent horse racing figures, such as Willie Mullins, Jack Kennedy, and Harry Skelton. Even nonsensical addresses like “Cheltenham racecourse” were permitted during the sign-up process.

In one instance, Wood signed up as the legendary horse Red Rum, claiming his profession was “racehorse” and his residence was “horse heaven.” Another site permitted a registration for a six-year-old purportedly living at Buckingham Palace. These lapses demonstrate how offshore platforms allow individuals to circumvent safety measures like self-exclusion.

The investigation identified sites such as Cosmobet, Velobet, and MyStake. MyStake recently made headlines for a supposed partnership with football icon Ronaldinho, though these reports were later proven false, with evidence indicating a photo of the player and the CEO was doctored.

Regulators face challenges not just from the sites themselves, but from their marketing reach. Wood noted that social media is a primary tool for gaining new users, reporting that his Instagram feed was inundated with promotions for offshore bookies via influencer and tipster accounts.

Some of these advertisements directed users to private messaging channels where referral codes and betting suggestions were shared.

Alex Wood commented:

I have been stunned by the vast amount of unlicensed and illegal gambling material being marketed online, and social media platforms must be held accountable for this.

In a separate test, Wood asked Meta AI for offshore gambling recommendations and was provided with links to multiple black market websites specifically targeting the UK market.

Weaknesses in payment processing also contribute to the problem. Many offshore sites accept standard payment methods like digital wallets and bank cards, allowing users to move from the regulated market to the black market with ease.