A recent report from the Asian Racing Federation Council on Anti-illegal Betting and Related Financial Crime (ARF Council) has shed light on the prevalence of unregulated and under-regulated betting websites globally. The study, which examined 534 popular betting websites, revealed that 40% of the 262 most visited sites were operating without proper regulation. The report also identified the use of mirror websites as a common tactic employed by operators to evade regulatory scrutiny. With the increasing hybridization of legal and illegal online betting, the ARF Council emphasizes the need for stricter licensing and regulatory measures to protect bettors and maintain integrity in the industry.
Extent of Unregulated and Under-regulated Websites:
Among the 262 most popular betting websites reviewed, 60% were classified as licensed and regulated. However, 23% operated in jurisdictions where they lacked proper licensing, leading to their categorization as “licensed but under-regulated.” Alarmingly, 17% of these popular websites were found to be unlicensed and unregulated, posing significant risks to bettors and the industry as a whole.
Mirror Websites and Evading Regulation:
The report highlighted the prevalent use of mirror websites by operators to evade regulatory attention. Mirror websites involve hosting the same betting site on multiple URLs, making it challenging for authorities to track and regulate their activities. The ARF Council considered operators with mirror sites as unlicensed and unregulated, as they lacked specific licenses for these URLs. The report also noted instances where operators received significantly more traffic on their mirror sites than on their main domains, emphasizing the scale and sophistication of this practice.
Random Sample Analysis:
In the random sample of 93 additional betting websites, 54% were licensed and regulated, 22% were licensed but under-regulated, and 24% were unlicensed and unregulated. In the sample of websites suspected to be unlicensed and unregulated, a staggering 89% fell into this category, while 11% were classified as licensed but under-regulated. Notably, there were no licensed and regulated sites among the suspected unlicensed sample.
The Global Licensing and Regulatory Landscape:
The report underlined the complexity of the global licensing and regulatory landscape, with online betting blurring the lines between legal and illegal operations. Three jurisdictions stood out as the primary sources of licenses for under-regulated websites: Curaçao (31%), Malta (18%), and the Philippines (13%). The ARF Council emphasized that advancements in technology, including mirror websites, third-party software, and cryptocurrencies, have facilitated the ease of becoming an online bookmaker or bettor, irrespective of individual jurisdictions’ gambling laws.
The Call for Stricter Regulations:
The findings of the report serve as a wake-up call for the need to strengthen licensing and regulatory measures within the online betting industry. The ARF Council emphasized the blurred distinction between legal and illegal operations, which poses challenges for both bettors and regulators. Stricter regulations, comprehensive oversight, and enhanced collaboration among jurisdictions are essential to safeguard the integrity of the industry and protect consumers.
The ARF Council’s report highlights the concerning prevalence of unregulated and under-regulated betting websites globally. The extensive use of mirror websites and the increasing hybridization of legal and illegal online betting underscore the need for more robust licensing and regulatory frameworks. Strengthening industry regulations, improving oversight, and fostering international cooperation are critical steps toward ensuring a safe and transparent betting environment for bettors worldwide.