UK black-market betting sites cheat Britons as platforms fumble age checks, investigation finds

An investigation into the UK’s unregulated betting market finds a growing black-market sector that cheats unsuspecting Britons out of thousands of pounds while enabling fake identities and even underage accounts to gamble. The probe, conducted for Flutter UKI, involved investigator Alex Wood, a former fraudster who now works to prevent crime. He set up test accounts using disguised and fictional profiles to gauge how easily illicit platforms could be accessed and used. The findings portray a landscape where unregulated sites deploy bright visuals, cartoonish characters and game-like interfaces to attract players, many of whom may not realize they are wagering on illegal platforms.

During the test, Wood opened a number of suspicious accounts and placed bets to test the systems’ safeguards. One online casino, GodOdds.com, allowed an account under the name Bo Peep, aged just seven years old, to place a £50 bet on an NBA game. The same platform accepted a bet from “Charles Dickens,” listed as 213 years old, on a Lingfield horse race. In another example, Slotsdynamite.com did not flag an account registered under a known extremist name, while an account using the details of Sajid Mir — the chief planner of the 2008 Mumbai attacks — was able to place £1,000 on a slot game called Lucky Crew. The tests also showed a platform named Lucky Wave telling the investigator to deposit £10,000 to recover an initial deposit, illustrating troubling withdrawal friction.

The operator behind many regulated UK sites has described a broader problem: unregulated apps and websites masquerading as games that offer free spins or big cash pots as bait, often presented through bright colours and familiar gaming motifs. These sites are not accessed through the dark web; they sit openly in app stores such as Apple’s App Store, Google Play and Meta’s app store, and they frequently advertise on social media or via pop-ups on family-friendly games. A key concern raised by the investigation is the potential for these platforms to exploit vulnerable users, including problem gamblers and younger audiences.

The scope of the issue extends beyond isolated scams. Ipsos polling cited by the report found that eight per cent of people who have registered with GamStop — the UK self-exclusion scheme required for licensed operators — have used black-market betting sites. That statistic underscores how easy it remains for UK residents to access unregulated gambling despite existing consumer protections. GamStop and the UK Gambling Commission have warned that illicit platforms are not bound by the same safeguards, consumer protections, or responsible-gambling requirements that apply to licensed operators.

The illicit operators’ reach is reinforced by the fact that many of the illicit platforms are advertised through mainstream channels, including app stores and social networks. They present themselves as legitimate entertainment options and even offer “responsible gambling” resources, which can create a veneer of credibility while they prey on vulnerable players. A participant in the study, a 44-year-old mother of four, described blowing £15,000 on unlicensed online slots over the past year. She told The Sun she had sought to close her GamStop account, but encountered platforms that either did not honor her requests or required repeated follow-up to actually restrict access. “I told them I’ve got a gambling problem,” she said, describing the emotional toll of the experience.

The findings come as the UK government weighs policy steps in the autumn Budget. Political discussions have centered on whether tighter taxes on the regulated sector could inadvertently push more money toward the black market. Flutter UKI, the umbrella for brands including Paddy Power and Sky Bet, has argued that higher taxes on the legitimate sector could “be a jackpot for the black market,” a line echoed by others in the industry who worry about the competitive imbalance that tax measures may create. Flutter’s position underscores a broader tension between regulation and enforcement in a fast-moving digital market.

Regulators say the scale of illegal gambling demands stronger action. John Pierce, the Gambling Commission’s director of enforcement, said the regulator is committed to disrupting the unlicensed market by partnering with technology platforms, search engines, hosting providers, domain registrars, payment services and advertisers. He noted that the commission has issued more than 2,000 cease-and-desist or disruption notices to illegal websites in the past 18 months and signaled that the Crime and Policing Bill in parliament would give the watchdog enhanced powers to take down illegal gambling sites. The commission’s stance is that tighter controls on payments and advertising could reduce the ability of illegal operators to reach UK consumers.

The investigation’s findings also highlight the role of payment services in enabling illicit gambling. Wood stressed that action from the Financial Conduct Authority is needed to curb payment processors that facilitate transactions with unlicensed platforms. He argued that if the ability to move money into illegal gambling sites is restricted, the incentive for UK residents to seek out those sites would diminish, particularly for vulnerable gamblers who may be lured by promotional incentives.

In the wake of the report, industry groups and stakeholders have varied responses. A spokesperson for Flutter UKI argued that higher taxes on the regulated sector would not be a free shortcut for revenue at the expense of consumer protection, emphasizing the need for robust measures to prevent illegal sites from gaining a foothold. The Gambling Commission has signaled that it will study whether tougher checks on players’ finances and other safeguards could drive addicts away from illicit platforms. The Commission has also benefited from the government’s planned enhancements to its powers under the Crime and Policing Bill, which would strengthen enforcement against unlicensed operators.

Comments from the operators named in the study were sought, including Slotsdynamite.com, GodOdds.com and Lucky Wave, but responses were not immediately available. The Daily Mail also sought comment from major tech platforms such as Apple, Google and Meta regarding the advertising and distribution of unregulated gambling apps. The investigation’s authors say the problem extends beyond individual cases and reflects a systemic gap in the regulation, supervision and enforcement of online gambling across platforms that reach UK users.

As regulators push for stronger action, campaigns aimed at raising awareness of gambling harms continue. GamStop and other consumer-protection groups stress the importance of recognizing warning signs of problem gambling and seeking help when needed. The report echoes a broader public policy question: how to balance innovation and consumer choice in digital entertainment with the need to protect the most vulnerable from exploitation by unregulated operators.

If you or someone you know may have a gambling problem, resources are available through the UK’s national helpline and the GamCare network, which offer confidential support and practical advice for reducing risk and seeking help. The ongoing policy dialogue suggests that efforts to close loopholes, improve identity verification, restrict high-risk financial flows, and strengthen platform-level controls will be central to any future strategy aimed at curbing the unregulated online gambling market.