Gaming Compliance International has moved to significantly elevate the war against the black market through the acquisition of Yield Sec for an undisclosed sum.
As a result of the deal, Yield Sec’s platform, processes and team will be integrated into GCI’s operations. Ismail Vali, Founder and CEO of the black market monitoring platform, will also assume the role of President of GCI.
Matt Holt, CEO of GCI, commented: “We are proud to welcome Ismail Vali and the entire Yield Sec team to GCI. This acquisition accelerates our mission to deliver transparency, integrity, player protection and certainty for regulated jurisdictions worldwide.
“Yield Sec’s innovative platform for effective and efficient disruption will become a cornerstone of our offering, enabling regulators and operators to gain unprecedented awareness and actionable awareness across the total online gaming marketplace.”
According to GCI, Yield Sec’s machine-led monitoring technology, which it says was adapted from military anti-terrorism and counterinsurgency, will become a core pillar of the company’s offering as it seeks to deliver advanced regulatory technology and marketplace transparency to the global gaming industry.
Vali described joining forces with GCI as the “next stage in our mission to defeat black market crime and protect the integrity of regulated gaming”.
“Yield Sec was founded to help regulators and operators see the entire online marketplace – legal and illegal – and act with certainty,” he added.
“GCI strengthens that foundation, expanding our ability to serve clients across commerce, community, and consumers. The purpose remains the same: to secure a sustainable, compliant, and fair marketplace that benefits everyone.”
Yield Sec was founded in 2020 through a collaboration between the marketing agency A Game Above and the player protection company Beanstalk to provide a tool for the industry to monitor and counter black market gambling activity.
Black market trepidation
The deal comes at a time when the global black market is becoming an increasingly prevalent and distressing issue for the regulated iGaming sector.
The Betting and Gaming Council recently estimated that £2.7bn is staked annually on the online black market in the UK, equivalent to 2.1% of the amount staked with regulated operators.
Meanwhile, Andrew Rhodes, the UK Gambling Commission CEO, stated: “We are determined to protect consumers and maintain confidence in the regulated sector by taking robust, evidence-led action.
“Since April 2024, we’ve seen a tenfold increase in our disruption activity, and we intend to continue to work with a wide range of partners to build on this success.”
He added: “The illegal online market is unsafe, unfair and criminal – that is why the Commission has invested heavily in this area in recent years.
“To be even more effective in combating the illegal market,it’s vital that we have both a deep and broad understanding of how it operates, and this insight is a crucial step in building that understanding in a very complex area to research.”
