Expert Reveals How TikTok, Sites like Citibet Are Powering Illegal Betting Markets

At the 2024 Asian Racing Conference in Sapporo, experts highlighted how technology and social media have dramatically accelerated the growth of illegal betting markets. James Porteous, Senior Manager of Due Diligence and Research at the Hong Kong Jockey Club (HKJC) and Head of the Asian Racing Federation’s Council on Anti-Illegal Betting, delivered a compelling presentation on the issue.

Porteous said that advancements in technology and the strategic use of social media platforms have significantly boosted illegal betting operations. He specifically pointed out that platforms such as Instagram, TikTok, and Twitch are increasingly being exploited to attract bettors, a trend he described as the “McDonaldisation” of illegal betting. This term reflects how illegal betting operations are franchising their services, much like a fast-food chain, to expand their reach and efficiency.

“Because the illegals have zero regulatory overheads and zero concerns about reputational or ethical considerations about how they deploy technology to market to consumers, to attract customers and to boost their turnover, we’ve found that the theme of the last two years is that technology has turbocharged illegal betting,” Porteous was quoted as saying in a report published by The South China Morning Post.

One notable example is the illegal online betting exchange Citibet. In his presentation, Porteous pointed out that Citibet has made use of cryptocurrencies and APIs/White Labels to “massively expand its reach and make it easier than ever to bet illegally on global racing.” Licensed to operate out of the Philippine government’s special economic zone, First Cagayan, Citibet has long had its origins and ownership shrouded in mystery.

It is reported that Citibet generates over $50 billion annually and has seen a dramatic increase in its monthly traffic. Illegal betting related to Hong Kong racing, in particular, has surged by 350% since 2015. Citibet’s influence is so significant that it rivals the turnover of the HKJC in the Hong Kong market.

The rise in illegal betting has been fueled by the ability of these operators to sidestep regulatory constraints and ethical considerations. With minimal overhead costs and no regulatory obligations, illegal operators are able to offer higher returns to bettors compared to legal markets. This lack of regulation also facilitates the use of cryptocurrency, further complicating efforts to track and control illegal activities.

Porteous noted that becoming an illegal bookmaker has never been easier. The cost of entry is low, with illegal operators offering a full suite of services—including odds, training, and even pirated live streaming—for as little as $7,000.

“This franchising is what we call the ‘McDonaldisation’ of illegal betting,” explained Porteous. “Now, Citibet is not only available on its own network of agent-only websites, but on literally thousands of other URLs via this franchising model.”

The widespread availability of these services through numerous websites underscores the vast and growing network of illegal betting operations.

Cryptocurrency is also a growing force in illegal markets, posing a huge integrity threat to racing and siphoning billions from the industry. “It’s never been easier for both parties to move money,” Porteous said. “According to one gambling database, there are 25 percent more so-called grey-market bookmakers which now accept crypto compared to when we looked at this data in 2020.”

This technological and social media-driven expansion is bringing illegal betting to a broader audience than ever before, posing significant challenges to regulatory bodies and legitimate betting operators alike.

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