A big UK betting company is now being scrutinized by regulators after a paperwork mistake showed potential connections to unlicensed offshore gambling operations. The UK Gambling Commission (UKGC) is checking if the bookmaker, whose name is not being shared for legal reasons, has done deals that break British gambling rules.

Regulator Uncovers Secret Offshore Ties in Routine Audit of UK Betting Firm

This all came to light during a regular check of financial records that the regulator asked for. People who know about the situation say the company left hidden text in the papers it handed over. Staff at the UKGC who check for rule-breaking found the hidden information, which was written in white letters on a white background. The content they found seems to point to deals with companies based outside the UK, as reported by The Guardian.

Early reports indicate these offshore operations might involve an unlicensed betting system aimed at wealthy British customers. These setups, if proven true, could have allowed certain clients to sidestep the tough checks and anti-money-laundering rules that UK-licensed betting must follow. These offshore companies set up in places like Curaçao or the Comoros Islands also do not have to pay UK gambling taxes or business taxes.

The UKGC has now asked the bookmaker to show more financial records, including specifics of individual transfers and account structures. While the regulator has not said anything about what they are looking into, people in the industry think investigators are zeroing in on possible rule-breaking related to sending “VIP” clients to foreign platforms.

Unnamed Bookmaker Could Lose Licence if Offshore Client Transfers Confirmed

An insider in the gambling industry hinted that any company caught moving top clients offshore could lose its license. Top managers, who hold personal permits to work in the UK market, might also face punishment.

The betting firm, which backs several sports events and has ties to big names in sports and politics, has hired lawyers instead of talking straight to the watchdog. The company stated it was not involved in any offshore business and did not know about any ongoing probe.

Watchdogs and tax offices will keep a close eye on this case. HM Revenue and Customs might step in if they find proof that profits were being sent abroad to dodge taxes.

Betting companies operating offshore have been a headache for UK officials for a long time. These firms get licenses in places with lax rules, making it hard to know who owns them or to control what they do. The UKGC has stepped up its game to fight illegal gambling. They are using tools to block certain websites and teaming up with other agencies to shut down unlawful betting sites.

If this investigation shows that the bookmaker helped people bet without a license, it could be one of the worst rule-breaking cases in recent memory.