(AsiaGameHub) –   An investigation commissioned by Flutter has exposed the deceptive strategies of the black market, as the lines between the regulated industry and unlicensed operators grow increasingly blurred. 

In an interview with SBC News, former fraudster turned investigator and government advisor Alex Wood— who led the probe— emphasized that ‘the biggest problem is being able to tell a dodgy site apart from a legitimate one’, as players are lured into the trap of using black market platforms. 

Wood employed several approaches to uncover the underhand tactics of illegal operators: false responsible gambling information, manipulative marketing, withdrawal issues, and failure to verify customer details. 

During his investigation, he warned that social media providers are enabling widespread promotion of black market operators, singling out Meta for criticism. 

He told SBC News: “I was at a police event where it was stated that Meta makes more money from crime than any criminal organization in the world— whether it’s romance fraudsters, illegal betting, or dodgy crypto investments. 

“They’re earning more by charging to display this content than all influencers combined. And while they’re raking in that money, there’s nothing anyone can do about it. 

“Home Office representatives at the event said: ‘We’ll sue Meta’, but they’ll just appeal, keep appealing, and we’ll run out of funds.”

Notably, he also revealed that Meta hosts the full betting journey— from onboarding to deposit to loss— within native apps like Instagram on iOS. 

He expressed concern that by enabling this process, social media platforms are lending ‘a veneer of trustworthiness and legitimacy’ to ‘deeply harmful’ black market sites. 

Wood shared that during his investigation, he found examples where entire transactions occur within Instagram, with no redirection to a third-party site. 

“Their name is visible throughout the process, so they have visibility of these transactions and charge a commission on all deposits.”

Wood noted that the verified account feature on platforms like Instagram can be seen as giving operators ‘a clean bill of health’ and thus offering ‘tacit endorsement’— which is inappropriate, as the content they post ‘glamourises illegal and unlicensed operators’ that shouldn’t accept UK players. 

He also highlighted the presence of young male influencers (some linked to the manosphere) driving their followers to black market operators, often via harmful social media content. 

Previously speaking to iGaming Expert, BetBlocker Chief Executive Officer Duncan Garvie expressed concern over ‘a huge problem in UK advertising regulation’ regarding streamers and influencers. 

Garvie stated: “Licensed gambling operators would face intense scrutiny for using marketing channels that appeal to younger audiences. But these rules are embedded in UKGC gambling licensing conditions. 

“Since influencers aren’t required to be licensed, and unlicensed brands are unrestricted by UKGC edicts, these stakeholders are free to partner in a way that completely undermines the marketing protections the licensing system is meant to deliver.”

He added: “This is compounded by influencers directing younger consumers to unlicensed gambling operators. We’re losing our young population to the black market, and once they’re gone, it’s unlikely they’ll return. 

“More must be done to require streaming platforms to ensure their content creators market products legally fit for the markets they reach.”

Speaking at the Illegal Gambling Prevention Summit, Wood warned that blocking domains isn’t enough—it’s merely ‘squeezing the balloon’—and noted the most effective way to thwart the black market is to stop payment service providers from moving money out of the UK. 

This surging threat comes as the regulated market faces an increasingly tough environment, opening the door wider for unlicensed operators to boost exposure and gain a larger market share. Commenting on rising taxation rates and stricter regulations, Wood issued a stark warning to regulators: ‘If you wanted to guarantee the black market’s success, you’re doing everything right’.