TLDR
- Illegal offshore gambling sites failed basic identity checks, accepting fake names like “Red Rum” and even allowing a 6-year-old to register
- Brands like MyStake, Velobet, and Cosmobet are openly promoting themselves online despite operating without UK licenses
- Social media influencers and tipster accounts are funneling users toward unregulated offshore bookmakers
- Common payment methods like bank cards and digital wallets make it easy for users to shift from legal to illegal sites
- Illegal operators now account for roughly 9% of the UK gambling market, threatening government tax revenue plans
The UK’s illegal gambling market is growing, and enforcement agencies are struggling to slow it down.
A new report commissioned by Flutter UK & Ireland found that unlicensed offshore betting sites remain easy to access and are being openly advertised across social media platforms.
The report was produced by fraud specialist Alex Wood. It paints a picture of a black market that operates with little fear of consequence.
Offshore Sites Fail Basic Identity Checks
Wood tested several offshore gambling websites ahead of the Cheltenham Festival. He created accounts using obviously fake identities to see if the sites would flag them.
In one test, he signed up using the names of well-known racing figures Harry Skelton, Jack Kennedy, and trainer Willie Mullins. One site accepted an address listed as Cheltenham racecourse without any challenge.
In another case, Wood registered under the name Red Rum. He entered “racehorse” as his occupation and “horse heaven” as his address. The site accepted all of it.
A different platform went even further. It allowed him to sign up as a 6-year-old living at Buckingham Palace.
These failures show how offshore sites can attract users looking to get around safeguards like self-exclusion programs that are required on licensed UK platforms.
The report named several brands operating outside UK regulation. These include MyStake, Velobet, and Cosmobet.
MyStake recently drew attention after announcing a partnership with soccer star Ronaldinho. Those claims were later discredited after evidence suggested the promotional image may have been fabricated.
Wood said the amount of illegal and unlicensed gambling material available online is “quite astonishing.” He added that social media companies should face questions about their role in allowing it.
The report makes clear that these operations are not hiding. They are promoting themselves so openly that regular users often do not realize they have crossed into the unregulated market.
Social Media and Payment Gaps Fuel Growth
Social media is playing a major role in helping offshore operators reach new customers, according to the report.
Wood said his Instagram feed quickly filled with posts directing users toward offshore bookmakers. Many of these came through tipster and influencer accounts.
Some links led users into private messaging groups. Inside those groups, betting advice and referral codes for unlicensed sites were being shared.
Payment systems are another weak point. Most unregulated sites still accept common options like bank cards and digital wallets.
That makes it easy for users to move from a regulated betting platform to an illegal one. The report warns that the transition is almost seamless for the average customer.
The growth of the black market is already showing up in industry figures. Illegal operators now account for roughly 9% of the UK gambling market.
That level represents a rise in recent years. The trend could complicate the Treasury’s plans to raise more revenue by increasing gambling taxes.
More betting activity outside the regulated system means less revenue flowing through formal channels.
Regulated operators are now pushing for closer cooperation between government, regulators, and technology companies. They want tighter controls on advertising and payment systems in particular.
