Regulator warns of billions in unlicensed turnover as Brazil faces cloaking threat
The UK Gambling Commission has confirmed that illegal casinos represents around 9% of the country’s total market, equivalent to billions of pounds in annual turnover.
Figures from the Commission show that unlicensed operators continue to attract British consumers despite regulatory efforts. Yield Sec, which works with the regulator, reported that thousands of illegal gambling sites remain accessible, many targeting UK players directly with casino products.
The study warned that these offshore casinos often fail to comply with consumer protection rules, leaving players without safeguards on deposits, winnings, or responsible gambling tools. The Commission said tackling the issue is a priority, including closer collaboration with search engines, social media platforms and payment providers to limit exposure.
Comparable challenges are being addressed in Brazil, with more than half of the iGaming population still using unverified websites to place bets. Moreover, cloaking techniques have been identified as a growing threat to the regulated casino market. Cloaking allows offshore gambling operators to disguise illicit casino content under trusted government or university domains, raising their search engine rankings alongside licensed bet.br operators.
A recent case showed casino links appearing under the Federal University of Pernambuco’s website, which redirected users to unregulated platforms. Researchers highlighted that these practices not only undermine licensed operators but also increase risks for minors and vulnerable users.
Licensed Brazilian brands have distinguished themselves by offering competitive bonuses, safeguard measures, and fast and secure payments, including Pix — Brazil’s instant payment system created by the Central Bank that allows transfers 24/7 in just seconds. A research study conducted by a casino in Brazil shows that 81% of players prefer Pix due to its instant processing and ease of use, while 46% still rely on bank cards such as Visa and Mastercard.
The surveys also indicate that security and speed are decisive factors for Brazilian players. Around 74% ranked transaction security as their top priority in casinos, while nearly half placed the speed of payments above all else. Convenience was highlighted by 48% of respondents as a decisive factor when choosing a payment method, with many reporting that they would abandon an online transaction if their preferred option was not available.
The UK Gambling Commission said that reducing the 9% share of illegal gambling requires sustained enforcement. Similarly, Brazil’s Secretariat of Prizes and Betting is focusing on technological solutions to combat cloaking and preserve trust in its regulated betting market.
