UK black-market betting sites earn £379 million in six months, investigation finds

A Yield Sec analysis estimates that black-market betting sites earned about £379 million in the first six months of this year, highlighting a surge in unregulated platforms that masquerade as puzzle- and adventure-style apps and can be accessed through mainstream app stores. The report portrays a landscape where vibrant visuals and seemingly harmless games are used to draw in gamblers, including vulnerable individuals and, in some cases, suspected addicts, with winnings sometimes refused or delayed when players attempt to withdraw.

The sites reportedly rely on bright colours, cartoonish characters and familiar game formats—such as virtual fruit machines or roulette wheels—to give the impression of harmless play rather than betting platforms. They are registered in jurisdictions around the world, including Estonia, the United States and Cyprus, and are promoted through social media and pop-ups in family-friendly games. In the UK, the accounts are reachable without stepping onto the dark web or using a VPN, and some are advertised in app stores rather than traditional gambling sites. In one recent example, the illicit sites offered high-stakes options while keeping per-spin limits low in legitimate online slots, even as users reported spending thousands of pounds at once. In the six-month window analyzed, investigators found a pattern of withdrawals being blocked or delayed and funds being kept by operators.

The investigation was led by Alex Wood, a former fraudster who now works on anti-crime efforts and was commissioned by Flutter UKI, the parent of Paddy Power and Betfair, to probe the UK’s black-market gambling ecosystem. In testing the platforms, Mr. Wood created and operated suspicious accounts with deliberately misleading or fake identities. He registered accounts under the name “Bo Peep,” claiming to be seven years old, and under “Charles Dickens,” listed as 213 years old, both of which allowed placing bets on sports and other games. Other accounts—such as one using the name of Sajid Mir, an individual on international watch lists—were used to spend large sums, including £1,000 on a slots game linked to a prominent figure associated with terrorism. The experiments reportedly uncovered little in the way of identity verification and weak or nonexistent checks from the operators.

Several platforms cited in the report—GodOdds.com, Slotsdynamite.com and Lucky Wave—were singled out for enabling high-risk transactions or deposits without robust verification. In one instance, GodOdds.com accepted a seven-year-old’s account to place a £50 bet, while another account allegedly allowed a person aged 213 to bet on a horse race. In yet another example, a site allowed a detailed withdrawal path but insisted that a £10,000 deposit be made before any funds could be recovered. The findings underscore how easily new players can access unlicensed platforms and how quickly they can be drawn into a cycle of play, debt and limited recourse when funds are at risk.

The report comes as policymakers weigh changes to tax policy and enforcement in the autumn budget. It notes that the non-regulated market often markets itself through mainstream channels and can appear, to some consumers, as a legitimate alternative to licensed operators. A Flutter UKI spokesperson argued that higher taxes on the regulated sector could inadvertently boost the black market’s appeal, reflecting broader industry concerns about how taxation shapes consumer behavior. They also noted the importance of balancing tax policy with consumer protection and enforcement.

Regulators have signalled a renewed focus on illegal gambling as part of ongoing conversations about consumer protection and risk controls. The Gambling Commission has warned that the illicit market benefits from aggressive, targeted marketing and could exploit loopholes in identity verification, payments and advertising. In the wake of the report, the Commission is said to be examining potential tougher checks on players’ finances and how payment providers are used to facilitate illegal gambling. The watchdog has already issued more than 2,000 cease-and-desist or disruption notices to unlicensed sites in the past 18 months. It is also pressing ahead with the Government’s Crime and Policing Bill, which would grant the Commission expanded powers to shutter illegal gambling websites.

John Pierce, the Gambling Commission’s director of enforcement, said the agency is committed to disrupting the unlicensed market in close collaboration with technology platforms, search engines, hosting providers, domain registrars, payment services and advertisers. He urged that authorities make it harder for illegal sites to operate by removing friction points that enable online gambling outside the regulated framework. In separate statements, GamStop, the UK self-exclusion scheme, stressed that illegal platforms operate outside the licensing regime and thus lack consumer protections, highlighting their prevalence in advertising across mainstream sites. GamStop indicated that the threat remains significant and deeply concerning for players who may be vulnerable to exploitation.

The Commission has signalled it will evaluate whether stronger checks on a player’s finances and higher taxes on the regulated sector could unintentionally push addicts toward unlicensed sites. In related moves, the UK Government’s broader regulatory agenda continues to address enforcement gaps and the responsibilities of payment processors in blocking illicit gambling transactions. The Daily Mail report notes that major platforms and search engines have faced scrutiny over their role in promoting illegal gambling, including inquiries directed at Apple, Google and Meta about how such sites are advertised and discovered by users. At least some operators were contacted for comment, and representatives from Slotsdynamite, GodOdds and Lucky Wave did not respond in time for publication.

In the broader context, industry observers say the issue touches on consumer protection, addiction risk and fiscal policy. Regulators emphasise that illegal platforms undermine the integrity of the licensed market, threaten the welfare of vulnerable players and complicate enforcement across borders. The public is encouraged to use licensed operators and to seek help if gambling becomes problematic. Resources and screening tools remain available through GamStop and associated public health resources for those seeking to limit their exposure to gambling.