Report calls for UK regulator investigation over black market inaction

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A new report has lambasted the Gambling Commission (GC) over its failure to block two of the UK’s most prominent illegal gambling websites and has called for an independent review of its licensing process.

The Coalition to End Gambling Ads (CEGA) carried out an investigation into the websites – Donbet.com and MyStake – both believed to be part of the Santeda International network. The investigation found that games from 18 UK-licensed suppliers were available on the platforms.

CEGA accused the GC of being aware of both sites since January 2025, but not taking the necessary action to block access in the UK. It also called into question the commission’s due diligence processes, as a number of the suppliers received a licence from the GC despite their content already being available on these sites.

Will Prochaska, Director of the Coalition to End Gambling Ads, said that the appearance of licensed game developers on these sites ‘raises serious questions’ for the GC, as well as the Betting and Gaming Council (BGC) and the government.

He said: “It would be a scandal if games developers that hold licenses in Great Britain are confirmed to be supplying illegal gambling websites. 

“The situation betrays the continuing association between gambling and crime, which the Gambling Commission has a statutory duty to prevent. Urgent reform is needed, and all new gambling licence applications should be paused whilst the Gambling Commission’s licensing regime is investigated.”

Alongside an investigation into the commission and a pause in licensing, the report also called on the GC to immediately block the two sites and ascertain which of its licensed software providers appeared on the sites.

Taking down a £3.5bn network

Santeda International, which reportedly operates both sites, is estimated to generate approximately £3.5bn annually, according to a report by GAMRS, powered by DealMeOut.

Part one of the 55-page report revealed that the network utilises multiple domains and mirror sites to evade authorities and taps into a wide affiliate network to attract players, including those who have previously self-excluded in the UK through GamStop.

Reports published on 13 and 14 June suggested that MyStake and Donbet had been blocked in the UK. However, the sites quickly reemerged and are both available at the time of writing from the UK without the use of a virtual private network (VPN).

Speaking on the iGaming Daily podcast published today (17 June), GC Executive Director Tim Miller emphasised the challenges the regulator faces in taking effective action against these types of websites, describing blocking as ‘a little bit whack-a-mole’ in its nature.

He said: “You can find them, that’s not the issue. The issue is being able to take them, especially when they’re based in other jurisdictions, and particularly in jurisdictions where there is no law enforcement cooperation. For a criminal network based in Russia, our ability to drag them into the magistrates’ courts is going to be almost zero.”

Despite this, Miller noted the importance of domain blocking and hailed the ‘important additional tool’ the commission is set to receive that will allow it to block domains at an internet service provider (ISP) level.

BGC also under fire

According to the report, five of the names appearing on the sites are also members of the BGC.

The trade body has consistently rallied against regulatory changes and tax hikes on the licensed sector due to the potential impact on the growth of the black market, which it projects will reach a value of £33bn by 2028.

However, Prochaska noted that these warnings would ‘ring hollow’ if it is found that their members are engaging with unlicensed websites.

CEGA demanded that the BGC be removed from the UK’s Illegal Gambling Taskforce until it can be confirmed that none of its members takes part in unlicensed gambling in Britain or overseas.

Prochaska added: “The BGC should require all its members to confirm that neither they nor their suppliers and affiliates have relationships with unlicensed gambling in Britain or overseas.”

CEGA’s investigators said that it was also able to access Donbet and MyStake via a browser in the UK and also through a VPN routed through Thailand – a jurisdiction where online gambling is expressly prohibited by law.

Alongside the slots that were available to play, the report also found that titles from several UK-licensed suppliers were listed, but unplayable at the time of the investigation.

Addressing the report during a Lords Committee meeting held today (17 June), BGC Chief Executive Officer, Grainne Hurst, labelled any accusation of black market activity by its members as ‘completely false’.

She said: “We have spoken to all of the members involved who have categorically denied that they are supplying the black market. If any member of the BGC was found to be supplying the black market, not only would they not be eligible for BGC membership, but they would also lose their Gambling Commission licence.”

A spokesperson for the BGC further told iGaming Expert that its members have ‘robust compliance procedures, contractual safeguards and monitoring processes in place to prevent the unauthorised distribution of their content’.

They added that black market operators ‘systematically infringe branding, intellectual property and game imagery through unauthorised use’.

iGaming Expert has also reached out to the GC for comment but is yet to receive a response.

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