Monday briefing: Who ​profits​ from the illegal global gambling empire?

Original article by Michael Segalov

Good morning. Every year, British people bet billions on unregulated gambling sites. Given how ubiquitous legitimate betting shops are on UK high streets, and how inescapable ads for online casinos are on social media, sport and primetime TV, the scale of underground operations appears baffling.

But the offshore online gambling market is one of the world’s most profitable – and least regulated – industries, estimated to be worth tens of billions. Opaque ownership, offshore licences and international inaction has made these often easily accessible and widely advertised digital casinos an attractive hunting ground for organised crime and corruption.

Now, however, we’ve had a rare glimpse into the murky world in which they operate. A German hacker has released tens of thousands of previously confidential documents in what has been labelled the “Casino Secrets leak”, exposing the inner-working of thousands of unregulated gambling sites.

In today’s First Edition, Guardian reporter and author of Jackpot: How Gambling Conquered Britain Rob Davies explains what this data could reveal, and why illegal gambling is running rampant in Britain. Before that, a roundup of this weekend’s biggest stories.

Weekend roundup

1. Labour | Going into his first party conference as prime minister, Andy Burnham revealed a set of new initiatives, from a new help-to-buy loan scheme for first-time buyers to a vision for universal free social care.

2. UK news | Counter-terrorism police are investigating whether Iran is behind a suspected bomb plot after armed officers found explosives on three vans parked minutes from an RAF base used by the US military.

3. Northern Ireland | Hundreds of protesters spent the day blocking the route of a hugely contentious parade after a court gave late-night clearance for the Orange Order to march on a historically significant road for the first time in nearly 30 years.

4. US politics | Experts warned on Sunday that Donald Trump could use the hours and days after November’s midterm elections to disrupt the results after struggling to enforce a crackdown on voting.

5. UK news | On Saturday, the stepson of Sir Ranulph Fiennes launched a crowdfunder to pay for “specialist legal advice” in an attempt to locate the explorer, who hasn’t been seen in public for more than two years.

In depth: ‘The major concern is the exploitation of vulnerable people’

The gambling hidden market is seriously big business. Gaming Compliance International (GCI) estimates the global illicit gambling market saw bets made worth $5.9tn in 2025, having steadily increased in previous years. A 2024 report by the UK Betting and Gaming Council (which represents the interests of the industry) suggested £2.7bn was being staked annually on illegal, unregulated gambling sites in Britain.

Without a licence from the Gambling Commission, it’s illegal for online gambling sites to offer their services in England, Scotland and Wales. “Despite its flaws, this regime has been developed over many years and is extremely stringent in certain aspects,” says Rob: imposing anti-money laundering and terrorist financing checks, setting of stake limits, enforcing responsible gambling rules which (in theory) protect vulnerable customers.

Britain isn’t short of legal online betting sites and casinos. According to the most recent data, there are 25.7 million total active accounts on licensed gambling sites in the UK. Still, users are increasingly being enticed underground: from gambling addicts who have previously banned themselves from regulated sites looking to bypass their own self-exclusion to high rollers who prefer to operate without oversight. Some UK operators restrict or refuse bets from highly successful sports betters, and you cannot legally bet in the UK using cryptocurrency, prompting these users to seek alternative options.

“The gambling industry would argue intrusive overregulation drives users to unlicensed sites,” says Rob. Licensed websites run affordability checks, ranging from background soft credit searches to requests for bank statements and digital payslips.

There’s no need to venture on to the dark web to find an unregulated outfit. If a UK customer tries to visit a non-UK licensed casino, the website should display a message stating it’s unavailable. But “some sites simply don’t bother blocking access,” says Rob, “and users can easily bypass these blocks using a simple VPN.”

Some users simply aren’t aware of the licensed/unlicensed distinction. For users, most platforms look virtually identical. Advertising further blurs these lines. While unlicensed operators can’t technically publish ads in the UK, sponsorship deals offer a loophole. Premier League football clubs frequently advertise unlicenced in Britain offshore gambling on their kits, while other clubs have their own commercial deals. These practices are currently legal, though there are moves to clamp down. (For more on the football front, this piece on Josimar is well worth reading).

And plenty of these sites do have legit-looking credentials, licensed not in the UK, but offshore where there are looser regulations. Many are registered in the Caribbean nation of Curaçao, which has over 8,000 online casinos in its jurisdiction – that’s one for every 20 of its residents.

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‘Under the bonnet’ of offshore gambling

The Curaçao files were accessed by 31-year-old German hacker Lilith Wittmann. It “wasn’t hard to access” the data, she explained to me this weekend from Berlin. “It took me only six hours to find a vulnerability to then monitor The Curaçao Gaming Control Board for nine months in real time.”

Specialist reporters like Rob are still combing through the files, but they include information about the owners of some of the world’s largest offshore casinos and details including the source of their wealth. “This data can take us under the bonnet and show us who is applying for the licences, and who may be profiting from illegal gambling.” Rob has previously reported on the Curaçao-based Santeda network, which “operates six or seven of the largest offshore casinos that people use in the UK.” Their data is in the leak – expect more stories to follow.

Also exposed is the lacklustre nature of much oversight that does take place. Some casinos have submitted detailed balance sheets, but Rob says that “in one case I looked at, a bloke had just written ‘cryptocurrency investments’ on a piece of paper as his source of company funds.”

“What’s already clear is that these are global networks, all gravitating to Curaçao, as a gateway to millions of wallets.”

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Respectability without scrutiny

From a punter’s perspective, looking for a licence when you’ve already opted for an unregulated betting site is unlikely to be a priority. But, these licences are often vital for the casinos to function, Rob explains: banks, payment providers, game developers etc can “point to this fig leaf of respectability” to justify working with these sites and making them operational.

“Curaçao has very cleverly marketed itself as a kind of international gambling hub,” says Rob. “It became the go-to because it had just enough respectability without any real scrutiny.”

Still, in recent years even Curaçao has taken a slightly more rigorous approach, says Rob, with casinos venturing elsewhere, where rules are even lighter, such as US and Canadian First Nation jurisdictions like Kahnawake and Tobique and the Indian Ocean island of Anjouan.

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‘Nobody will come after you’

There’s certainly a financial incentive for governments to crack down. The Office for Budget Responsibility estimates betting and gaming duties will raise £4bn in 2025/26. Above board operators aren’t just liable for corporation tax – they also pay HMRC a 40% levy called Remote Gaming Duty on stakes they profit from. Unlicensed casinos avoid such obligations.

“From my reporting standpoint, the major concern is the exploitation of vulnerable people,” says Rob. He has reported on the gambling industry for years, covering “plenty” of poor behaviour by British licensed operators. “But you’re definitely safer with these companies,” he says. Unlicensed operators offer no safeguards, and in some cases, have simply refused to pay out winnings to players, who then have no legal recourse.

Rob has interviewed many people who’ve lost significant amounts on unlicensed sites, who’d received “no intervention whatsoever when they were displaying obvious signs of problem gambling”. If a UK-licensed operator acted similarly, “they could face a multimillion pound fine or even a suspension of their licence.”

There are ongoing efforts in the UK to wrest back control, with legislation expected soon to give the Gambling Commission greater powers to intervene. “Really it needs a coordinated international response,” says Rob, “but ultimately it will be very, very difficult to achieve anything substantial.” Casinos can virtually relocate faster than jurisdictions can be targeted. Shut down a website, and a replica can pop up within a few seconds with a slightly different domain name. “And there are always going to be countries where the governments don’t have the will or the capability to act, especially today with Belarus and Russia.”

That’s not to say we shouldn’t try. “When it comes to drug or sex trafficking,” says Rob, “there’s an enormous coordinated global effort globally to crack down with very serious consequences for those involved. But with unregulated gambling – essentially a licence to print money, deeply connected to organised crime – nothing is being done. And nobody will try to come after you.”

Whether that’s also true for the hacker, Lilith Wittmann, remains to be seen, as she waits to hear if legal proceedings might soon be mounted against her. She seems entirely unfazed at the prospect. “There was a legitimate public interest defence in accessing this data,” she tells me, “so we all know how much tax revenue is being lost and who is profiting.” Whether a German court will agree is another question.

The week to come

• Tuesday | Andy Burnham will deliver his first party conference keynote speech as Labour leader and prime minister.

• Thursday | Nasa and SpaceX’s Crew-13 mission to the International Space Station is expected to launch from the Kennedy Space Center, Florida.

• Sunday | Brazil holds its legislative and presidential elections, which sees incumbent Lula face Flávio Bolsonaro, son of Jair.

What else we’ve been enjoying

• Sandra Laville visited the Devon town of Great Torrington not to see the beautiful Unesco-protected nature reserve or nearby beaches, but to meet the scores of residents resisting plans for an AI datacentre to be constructed on the nearby plains. Charlie Lindlar, newsletters team

• I enjoyed the big idea this week on whether avoiding misery makes you happy. Turns out unhappiness-avoidance can rob you of the opportunity of experiencing more positive feelings. Katy Vans, newsletters team

• Did you see that viral video this week in which a multitasking “mom of the year” holds snacks and a kid while her husband sits idly at a baseball game? Well, the mum, Erika, has written this beautiful piece showing there was more to the incident than met the eye: “The camera showed what I was carrying in my hands. It couldn’t show what he was carrying that night.” Charlie

Sport

Nations League | Ireland beat Israel 3-0 amid an eerie atmosphere that saw the Irish players wear black armbands; Greece scored a shock 1-0 win over Germany; and Wales wilted in Copenhagen in a 2-0 defeat to Denmark.

Cricket | Opener Tom Banton’s first international century paved the way for England to cap a turbulent summer of cricket with a series-clinching thrashing of Sri Lanka.

Football | Chelsea beat London rivals Arsenal 1-0 at Stamford Bridge to move up to third in the Women’s Super League.

The front pages

The Guardian splashes on “Five men arrested after explosives found near RAF base used by US”. The Times leads with “Iran link investigated in ‘terror plot’ at RAF base”, the Mirror has “999 call foils ‘terror plot’” and “Farmer foils RAF bomb plot” is top story at the Sun. The Telegraph has “Iran link to RAF bomb plot” and the Daily Mail says “‘Iran bomb plot’ at RAF base foiled by farmer’s 999 call”. The Financial Times runs with “Burnham to fight election on tax rises for care reform” and The i Paper leads on “Tax rise talks at No10 to pay for new National Care Service”.

Today in Focus

Banished: the secret Trump deals sending migrants across the world

Investigations correspondent Louisa Loveluck reports on the Trump administration’s secret deportation deals, sending thousands of migrants to ‘third countries’ across the world.

Cartoon of the day | Edith Pritchett

The Upside

A bit of good news to remind you that the world’s not all bad

From sea​side cottages in Anglesey and Dorset to remote Highland bothies and mountain hideaways in Wales, these ​1​5 great cottages for rent in the UK ​a​re perfect for an autumn escape.

Pen Bonc in ​north Wales is as close to the sea as it is to the local fish and chip shop, while Pippin Cottage near Bude​ is set on a working orchard. Getting out in nature ​i​s a central theme with easy access to beaches, hiking trails, national parks and wildlife-rich landscapes. Many ​c​ottages offer hot tubs, outdoor baths and saunas. ​At Basecamp in the Lake District you can walk an alpaca! Other breaks come with sourdough workshops, wine tastings, yoga sessions​ and dark-sky photography​.

E​njoy the changing season, slow down and reconnect with nature.

Sign up here for a weekly roundup of The Upside, sent to you every Sunday

Bored at work?

And finally, the Guardian’s puzzles are here to keep you entertained throughout the day. Until tomorrow.

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