The rise in illegal betting agents has been attributed to the use of social media marketing platforms by a Hong Kong Jockey Club executive. During a presentation at the Asian Racing Conference in Sapporo, Japan, Senior Manager James Porteous highlighted the impact of technology in drawing large numbers of users into illegal betting in Asian markets.
Porteous, who also serves as the Research Head for the Asian Racing Federation’s Council on Anti-Illegal Betting and Related Financial Crime, pointed out that the financial gains associated with unregulated betting markets are driving the adoption of innovative approaches on social media platforms. Platforms such as Twitch, TikTok, and Instagram are being utilized by entities like Citibet, an illegal online exchange that reportedly generates over $50 billion in turnover annually and operates out of the Philippines government’s special economic zone.
The South China Morning Post reported that Citibet has been able to generate significant revenue from illegal betting on Hong Kong racing, rivaling the earnings of the Hong Kong Jockey Club. The illegal betting market in China’s Special Administrative Region has seen a 350% increase since 2015, raising concerns about the lack of transparency and accountability in such operations.
Experts like Chris Eaton have warned about the risks associated with agent-based structures in the Philippines, which provide anonymity and secrecy to account holders and are susceptible to criminal abuse and money laundering. Porteous highlighted the ease with which individuals can now operate as illegal bookmakers, offering odds, training, risk management, live streaming, and customer relationship management services for a relatively low cost.
Citibet has established a network of agent-exclusive websites and thousands of other URLs through a franchising model, leading to what Porteous described as the “McDonaldisation” of illegal betting. The absence of regulatory oversight for offshore operators, combined with their willingness to leverage technology for marketing purposes, has enabled them to reach mass markets and accelerate the growth of illegal betting activities.
The financial incentives for illegal betting agents to recruit customers through various technological platforms have made it more accessible to the general public, as Porteous emphasized the unprecedented reach of illegal betting in the modern era. The use of social media and other digital tools has transformed the landscape of illegal betting, making it easier for operators to target consumers and expand their operations on a global scale.