Reward for Novel Uses of Twitch, TikTok “Turbocharging” Illegal Betting Market in Asia  

  • Rewards for illegal bookmakers driving “novel” uses of social media platforms including Twitch
  • Franchising of unregulated bookmakers dubbed the “McDonaldisation” of illegal betting
  • Unregulated firms use new tech to market to consumers, which has “turbocharged illegal betting”
Hong Kong Jockey Club office building
A Hong Kong Jockey Club exec has attributed a rise in illegal betting agents to “novel” uses of social media marketing platforms. [Image: Shutterstock.com]

Pulling people in

The Asian Racing Conference in Sapporo, Japan was the setting for the Hong Kong Jockey Club (HKJC)’s Senior Manager, Due Diligence and Research James Porteous’s presentation on the “turbocharged” effect technology is having on drawing masses of users in Asian markets into illegal betting.

driving “novel” uses of social media platforms

Porteous, who is also Research Head for the Asian Racing Federation’s Council on Anti-Illegal Betting and Related Financial Crime, believes the material gains for those involved in the unregulated betting markets are driving “novel” uses of social media platforms.

The South China Morning Post on Thursday cited Porteous as naming platforms including Twitch, TikTok, and Instagram.

One entity allegedly benefitting from unregulated betting markets is illegal online exchange Citibet, which previous claims state makes a turnover of over $50bn annually. The origins and ownership of Citibet have long been in question, but it is licensed to operate out of the Philippines government’s special economic zone, First Cagayan.

Citibet slickers

According to the Post, Citibet has a reason to get up Porteous’ nose. The Asian daily reported Citibet generated almost as much on Hong Kong racing as the HKJC, with illegal betting in China’s Special Administrative Region up 350% since 2015.

As far back as 2015, meanwhile, sports betting expert and ex-federal agent with the Australian Federal Police and Interpol, Chris Eaton, warned of Philippines agent-based structures “designed to maintain the anonymity and secrecy of account holders” and that were “readymade for abuse by criminals and ideal for money laundering.”

“No one even knows who owns these operations and this is outlandish,” Eaton said in a statement that still holds true nearly ten years later.  

easier than ever to trade as an illegal bookmaker

On top of that, adds Porteous, it’s now easier than ever to trade as an illegal bookmaker. The HKJC exec said illegal operators are furnishing would-be bookmakers with odds, training, risk management, “pirated live streaming and customer relationship management for as little as US$7,000.”

According to Porteous, Citibet now boasts its own network of agent-exclusive websites plus “literally thousands of other URLs via this franchising model.”

Porteous referred to the rise of the hydra-like franchising as the “McDonaldisation” of illegal betting.

Technology boost

The HKJC exec stated because the offshore operators have no regulatory overhead nor ethical qualms about using technology to market to consumers, the combination is reaching mass markets and has “turbocharged illegal betting.”

“Customer recruitment commissions for illegal betting agents are now so potentially lucrative that they are massively incentivised financially to exploit every technological platform in increasingly novel ways.”

“It’s bringing illegal betting to the mass market like never before,” Porteous added.

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