TLDR
- Illegal offshore betting sites passed zero identity checks, accepting fake names like “Red Rum” and a 6-year-old living at Buckingham Palace
- Brands like MyStake, Velobet, and Cosmobet are openly advertising 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 regulators are struggling to slow it down. A new report commissioned by Flutter UK & Ireland paints a troubling picture of how offshore betting sites are slipping through the cracks.
The report was carried out by fraud specialist Alex Wood. It tested how easy it was to open accounts on unlicensed gambling websites operating outside UK jurisdiction.
The results were striking. Wood created accounts using the names of well-known racing figures like Harry Skelton, Jack Kennedy, and trainer Willie Mullins. None of the sites flagged the fake identities.
In one test, Wood entered Cheltenham racecourse as his home address. The site accepted it without question.
Another attempt went even further. Wood signed up under the name Red Rum, listed his occupation as “racehorse,” and gave “horse heaven” as his address. The account was approved.
Perhaps the most alarming test involved registering as a 6-year-old living at Buckingham Palace. A different platform allowed that account to go through with no issues.
Offshore Brands Operating in Plain Sight
The report named several brands that are currently accessible to UK users despite lacking proper licenses. These include MyStake, Velobet, and Cosmobet.
MyStake recently attracted attention after announcing a partnership with former soccer star Ronaldinho. That promotion was later called into question after evidence suggested the image used may have been fabricated.
Wood said the volume of illegal gambling content available online is “quite astonishing.” He added that social media companies should face questions about how these promotions are allowed to spread.
These sites are not hiding. They are advertising openly, often in ways that make it hard for everyday users to tell the difference between a regulated and unregulated platform.
Social media is playing a major role in driving traffic to these offshore operators. Wood said his Instagram feed quickly filled with posts directing users to illegal bookmakers.
Many of these posts came through tipster and influencer accounts. Some links led users into private messaging groups where referral codes and betting advice were being shared.
Payment Systems and Tax Revenue at Risk
Payment methods are another weak spot. Most of the unlicensed sites still accept standard options like bank cards and digital wallets.
That makes it easy for users to move from a licensed UK platform to an offshore one. The report warned that the transition is “almost seamless” for the average customer.
The financial impact is already showing up in market data. Illegal operators now make up around 9% of the UK gambling market, a share that has risen in recent years.
That trend could cause problems for the Treasury. The UK government has been looking at increasing gambling taxes to raise revenue.
But if more betting activity moves outside the regulated system, less money flows through formal channels. That means less tax revenue collected.
Regulated operators are now pushing for closer cooperation between government bodies, regulators, and tech companies. The focus is on tightening controls around advertising and payment processing.
The report was published ahead of discussions around UK gambling policy reform. Wood’s findings were based on testing conducted in the lead-up to the 2026 Cheltenham Festival.
