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Has pirate sports streaming become the black market’s main benefactor?

| By Martin Bjoerck | Reading Time: 7 minutes
Illegal streaming is not just a copyright problem: it has become a powerful customer-acquisition channel for unregulated bookmakers. But regulators are not ready to make a direct link yet.
Genius Sports

There is something perverse about paying for football and finding that the pirate has built the better television service.

During the 2026 World Cup, viewers could sometimes find illegal streams offering multiple matches at once, highlights and, in some cases, better picture quality than legitimate alternatives. Legal services, meanwhile, were divided by rights deals, subscriptions and technical constraints. When a legitimate stream faltered, the pirate alternative was only a search away.

That would already be an uncomfortable business problem for broadcasters. It becomes more serious when the pirate stream is not merely stealing the audience but selling it to the black-market gambling industry.

A new study by Gaming Compliance International (GCI), led by Ismail Vali, puts a striking number on the phenomenon. It estimates that illegal streams lasting at least 90 seconds generated 174.3 billion views during the World Cup, or 1.68 billion per match on average. The final between Spain and Argentina generated 6.2 billion such views. Most strikingly, 95% of the qualifying illegal stream views carried advertising for unregulated gambling.

The figure is a measure of stream views, not people: a useful distinction in an industry where a single viewer can reload, switch mirrors – which is alternative copies or duplicate streams of the same live broadcast – or reconnect several times. Even so, the size of the number is hard to ignore.

“The World Cup did not create the unregulated gambling problem,” says Vali. “It exposed the ecosystem supporting it.”

That ecosystem matters more than any individual pirate website. Illegal streaming provides the audience; unregulated gambling provides much of the money that turns that audience into a business.

A marriage of convenience

The relationship has its roots in the pandemic. Professional sport disappeared, depriving both legitimate and illicit gambling operators of their most valuable customer-acquisition environment. Pirate streaming operators, meanwhile, had little sport to steal.

Vali says the two businesses effectively discovered that they had a common problem: “We need content to convert audiences into the other things that we’re selling them.”

The result was an increasingly sophisticated arrangement in which stolen or manufactured sports content could be used to attract an audience, which could then be directed towards gambling.

The World Cup offered a vastly more valuable version of that model. A viewer arriving at an illegal stream is already signalling an interest in live sport. For an unregulated bookmaker, that is almost the perfect customer-acquisition prospect.

According to GCI, affiliate arrangements observed by its monitoring software can pay illegal streaming operators between 25% and 50% of the net gaming revenue generated by customers they refer.

That changes the economics of piracy. A pirate need not simply sell advertising space. It can participate in the value of the customer it has delivered.

“Unregulated gambling is the short-term revenue engine fuelling illegal streaming,” says Vali.

There are other sources of income, including advertising, data harvesting and potentially cybercrime. But gambling has an unusually direct relationship with live sport: the audience is valuable precisely because it is watching something on which it may also want to bet.

DAZN, one of the world’s largest sports-streaming platforms, sees the same threat from a different angle. Ed McCarthy, its chief operating officer, says to iGB that pirate services funded by illegal activity deprive leagues, clubs and broadcasters of legitimate revenue while exposing consumers to “fraud, identity theft, unregulated gambling services and other harmful content”.

The problem, he argues, is therefore no longer simply piracy. “Tackling piracy requires a coordinated response across rights holders, technology platforms, regulators, law enforcement and other industry partners.”

That is a much bigger proposition than sending lawyers after websites.

The England-France third-place match provides a useful case study, albeit one that requires caution.There were widespread reports that the BBC’s stream struggled under heavy demand, prompting complaints from viewers who said pirate alternatives were more reliable. GCI recorded two billion qualifying illegal stream views for the match – above its 1.68 billion tournament average.

Vali is careful not to claim causation. His data cannot establish that viewers who experienced problems with the BBC migrated to illegal services. But the episode illustrates what he calls “displacement and replacement”.

“If the legal service is unavailable, unreliable, fragmented, expensive or difficult to access, the consumer can be displaced,” he says.

It is an important distinction. A consumer who cannot watch one match legally may simply find another legal route. But if the illegal route is easier, cheaper and more comprehensive, temporary displacement can become a permanent change in behaviour.

DAZN’s McCarthy agrees that reliability is critical. “Our industry must continue to invest heavily in platform resilience, streaming technology, monitoring and customer support”.

The paradox is that the pirate may have fewer constraints. It does not have to negotiate rights territory by territory, comply with the commercial obligations attached to a broadcast contract or build a business case around a subscription price. It simply takes the content and combines it.

The price of legality

Sports rights have become more valuable partly because broadcasters and streaming platforms have competed aggressively for exclusive content. The consumer consequence is that following a sport increasingly means following its broadcasting rights.

Germany offers a particularly vivid example. Speaking to iGB, Bird & Bird lawyers Markus Körner and Yvonne Schaafs say German football fans may need to subscribe to Sky, DAZN, Amazon Prime and Magenta Sport depending on what they want to watch.

“Fragmentation is the biggest driver,” says Körner.

Schaafs adds that one of the attractions of pirate services is brutally simple: consumers pay once and get everything.

Although expensive subscriptions do not justify theft Vali argues that the legal industry has to understand the competitive environment in which theft occurs. GCI cites an earlier analysis of the US NFL market in which following the entire season required seven services and roughly $1,600 in annual spending. Vali says that figure has since risen to nine services and about $1,800.

The precise economics vary enormously by country, and comparisons are imperfect. But the underlying problem is universal: a pirate service does not ask the customer to understand the rights structure. It asks only: what do you want to watch?

Schaafs says this is one reason illegal platforms are so attractive: “One main positive effect of the illegal streaming platforms for consumers is that they pay once and have everything.” Unquestionably, that is a remarkable competitive advantage for an illegal business.

The regulator’s cautious answer

The UK Gambling Commission is less willing to draw a straight line between illegal streaming and the growth of the gambling black market.

Its position is that the Police Intellectual Property Crime Unit leads on identifying and disrupting illegal sports streaming services, while the Commission works with it where gambling is involved.

“We recognise that illegal sports streaming can present risks in this context,” a spokesperson says, adding that the Commission will continue to monitor intelligence and developments as part of its wider work against illegal gambling.

The regulator has plenty of evidence that the broader black market is being attacked. In the last financial year it issued 741 cease-and-desist notices, reported 397,527 URLs to search engines and disrupted 1,134 websites, either by taking them down or geo-blocking them.

New powers under Britain’s Crime and Policing Act should allow the Commission to take action against illegal sites’ IP addresses and domain names itself. A dedicated illegal gambling taskforce has been established by the regulator and the government has also committed almost £26 million over three years to strengthen the Commission’s enforcement capabilities.

Yet the Commission does not quantify the contribution of illegal sports streaming to black-market gambling growth.

That restraint is understandable. A connection does not prove cause and effect, and GCI’s 95% figure demonstrates advertising exposure rather than the number of gamblers recruited or the value of bets generated.

Nevertheless, the evidence points to a commercially meaningful connection.

 

The limits of blocking

Germany offers a glimpse of both the possibilities and limits of enforcement.

In April, the Cologne Regional Court ruled in a case brought by DAZN and the German Football League against LiveTV.sx, followed by a DNS block coordinated through Germany’s CUII, the industry’s copyright-clearing body. Bird & Bird’s analysis describes the procedure as an evolution rather than a revolution: rights holders still need a court decision, but CUII can coordinate implementation among participating internet providers.

Körner and Schaafs stress that the decision should not be mistaken for a magic wand. “It’s not a wonder tool,” says Körner.

The reason is obvious. Block a domain and the operator can move to another. A VPN can bypass a DNS block altogether. Rights holders can return to court, and an established precedent may make subsequent action easier, but the underlying problem remains one of speed.

The same dynamic afflicts illegal gambling. Domains disappear; mirrors appear; payment channels move; affiliates migrate.

There is, however, a difference. Schaafs and Körner say sports piracy is generally pursued by rights holders enforcing intellectual-property rights, whereas illegal gambling is primarily dealt with through regulatory sanctions. They have not, so far, seen extensive evidence of the same companies directly operating both businesses.

GCI’s findings suggest that the commercial ecosystems are nevertheless becoming tightly connected.

A market designed for the pirate

The uncomfortable conclusion is that piracy is not winning because consumers have suddenly developed a philosophical objection to paying for sport. It is winning because the illegal proposition is exceptionally clear. All the sport. One place. Apparently free.

The legal proposition is often the reverse: several subscriptions, different apps, territorial restrictions, varying picture quality and the occasional technical failure.

DAZN insists that it is investing to make legal viewing the better experience. “Delivering exceptional fan experiences is a compelling reason for people to watch sports legally,” says McCarthy.

That is correct. But the industry cannot solve a marketplace problem with technology alone.

GCI’s World Cup figures suggest that illegal streaming has reached industrial scale. If 95% of the qualifying illegal stream views carried unregulated gambling advertising, then the pirate stream has become something bigger than a digital back alley. It is an advertising network aimed at sports fans, with gambling as its principal commercial engine.

The answer, therefore, cannot be to keep blocking one URL after another.

Vali’s prescription is to “monitor, police, enforce and optimise”: monitor the whole marketplace, police its supply chains, enforce against those enabling illegal activity, and make the legal proposition sufficiently attractive to keep consumers inside it.

There is an economic lesson here. Rights holders cannot control the value of their content merely by owning the rights. They must control the route by which audiences reach that content.

The World Cup’s illegal stream views are a warning about the economics of digital sport. When legal content becomes fragmented, expensive or unreliable, crime does not need to create a competing product. It merely needs to remove the barriers between the consumer and the product everyone already wants.

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