(AsiaGameHub) –   A new report from GAMRS, backed by DealMeOut, exposes the massive scale of the international illicit gambling market, showing that the broader network associated with Santeda brings in around £3.5 billion each year.

The first section of the 55-page GAMRS document identifies Santeda as the core operator driving the entire ecosystem via a resilient “hydra” operational model.

This hydra-like structure is sustained by a combination of numerous domains, mirror websites, shared technical infrastructure, redirection systems, and an extensive network of affiliates.

The report highlights affiliate marketing as a vital driver of growth for this network, pointing specifically to the significant impact of online streamers and influencers in driving traffic to unlicensed casino sites.

This aligns with ongoing warnings regarding the changing online habits of younger demographics, who are increasingly targeted by streamers aggressively promoting unregulated gambling platforms.

Of serious concern to policymakers and regulatory bodies is the report’s finding that unlicensed operators view the United Kingdom as a primary target market for customer acquisition.

For instance, Velobet, a major brand in the network, drew 75.9% of its traffic from the UK, with a significant portion of these visitors being players who had previously registered with the GamStop self-exclusion scheme.

Additionally, the rapid growth of UK traffic is highly concerning, with the report indicating that illegal gambling’s share of the UK market is projected to surge from just 0.5% in 2020 to between 12% and 15% by 2025.

The report warns that this upward trend is unlikely to turn around soon, largely due to tax adjustments and regulatory hurdles in the UK that hinder the ability of licensed operators to compete effectively.

According to the findings, British enforcement efforts are falling short by targeting specific websites and URLs rather than tackling the broader affiliate and marketing networks that aggressively recruit new players via search engines and streaming platforms.

There are also concerns that money spent by UK players on these unauthorized offshore sites is being funneled through associated businesses and investments, such as real estate and construction projects in the CIS region, thereby moving profits from vulnerable British gamblers into other business sectors.

Although the report does not explicitly mention affordability checks, the appeal of playing with operators outside of the regulated framework remains a major draw for users choosing unlicensed sites.

This follows a striking disclosure by Bally’s Intralot Chief Executive Officer, Robeson Reeves, who stated that high-value players have already departed the regulated market while outlining the company’s plans for UK success.

Consequently, any upcoming regulatory adjustments must be approached with extreme caution, as the UK urgently needs to reclaim ground from black market operators.

While blocking transactions is frequently suggested as a primary way to combat illegal gambling, the report emphasizes that the black market supply chain is highly adaptable and capable of bypassing such disruptions.

Nevertheless, disrupting the affiliate network could successfully reduce exposure and player acquisition. However, this would require a coordinated strategy involving the government, payment service providers, regulators, and—most challenging of all—social media platforms.

The UK government has demonstrated a willingness to strictly regulate social media, such as proposing a ban on social media use for under-16s. However, this legislation in its current state may still leave loopholes that allow younger audiences to access streaming platforms.

Central to the problem is the overt promotion of non-GamStop casinos on social networks, with the report cautioning that these operators actively target and profit from individuals who have chosen to self-exclude.