Flutter Report Emphasises Underhand Tactics Used By Black Market Sites

Flutter has commissioned a report that takes a deep dive into the existential threat posed by black market gambling. Now accounting for 9% of Gross Gambling Revenue (GGR), the lines between the regulated industry and unlicensed operators have become increasingly blurred.

Fraud specialist and government advisor, Alex Wood, was responsible for conducting the investigation on behalf of the UK gambling giants. And his report unearthed some shocking findings.

Deceptive tactics exposed

Over the past few years, black market gambling has experienced exponential growth. Unlicensed sites have come under the microscope, and in Wood’s report, he noted they adopted deceptive tactics, which included marketing manipulation, false responsible gambling information, and failure to verify customer details.

UK bettors can access black market sites through a Virtual Private Network (VPN), ensuring their online activity isn’t tracked. However, Wood revealed that many sites not recognised by the United Kingdom Gambling Commission (UKGC) didn’t carry out basic checks, and punters could place wagers using bizarre pseudonyms.

Discussing the problems faced by bettors, Wood told SBC News:

“It’s set up to be the sort of thing where you make your deposit and you never see that money again, and the whole thing is fraud.

“It’s made it very easy for people to deposit and then impossible to withdraw.”

Social media at the heart of the problem

According to Wood, his report detailed how social media platforms have helped accelerate the growth of black market operators. Moreover, he criticised Instagram and Meta, blaming them for legitimising rogue gambling sites.

He added:

“You can see examples of where the whole transaction occurs within Instagram. It doesn’t divert to a third-party site — it all happens in the app.

“Their name is visible all the way through it, so they’ve got visibility of what these transactions are, and they are charging a commission on all of these deposits. Yes, it’s obvious, because they can see it, and they’re making money from it.

“I was at a police event, and it was said that Meta makes more money from crime than any criminal outfit in the world, whether that’s romance fraudsters, illegal betting, or dodgy crypto investments. They’re making more money by charging for people to show this content than any of the influencers put together. Whilst they’re making all that money, there’s nothing you can do.”

Message needs to be heard

Another survey revealed earlier this year indicated that 52% of players predicted greater black market growth, and that was largely owed to the UK budget. In her statement last November, Chancellor Rachel Reeves revealed that the general betting duty paid on online sports wagers would be hiked from 15% to 25% as of April 2027.

There have been several vocal critics of the effects of black market gambling, and the calls to clamp down on rogue operators have been led by Grainne Hurst, CEO of the Betting and Gaming Council (BGC).

She said:

“Illegal gambling sites do not pay tax. They do not contribute to British sport. They do not invest in safer gambling, and they do not protect vulnerable people. If the government wants growth and genuine consumer protection, it must back the regulated sector not make it less competitive against criminals.”

Taking tougher action

Wood has previously suggested that blocking domains doesn’t go far enough to thwart the black market, suggesting it only “squeezes the balloon”. Nevertheless, his investigation into the unregulated gambling sphere has highlighted some alarming trends, and hopefully, bettors will take heed of his warnings.