Bally’s Japanese Millions: Black Market Ties Threaten UK Expansion

The US gaming heavyweight Bally’s Corporation is currently navigating treacherous political and regulatory waters. While the firm is betting heavily on land-based casinos and expansion into the regulated UK market, past connections to the Asian region are casting long shadows. Specifically, revenues from Japan—where online casinos have been explicitly illegal since June 2022 and face even tougher laws since September 2025—could become a major hurdle for the multi-billion dollar takeover of evoke, the parent company of William Hill.

Although Bally’s officially sold its Asian B2C division to a group of former managers at the end of 2024, current financial documents show a deep-rooted economic connection. The company recorded approximately $23 million in licensing revenue from this segment in 2025. This sum represents a significant 4.6% of the group’s total consensus EBITDA of $502.4 million. For the UK Gambling Commission (UKGC), the question now arises whether an operator indirectly profiting from illegal markets can be considered suitable for a British license.

Numbers and facts

The dimensions of the Japanese business were immense. Under the Gamesys Group brand, which Bally’s acquired in 2021, the East Asian market at one point represented 26% of total revenue, equivalent to about £108 million at the time. After the official sale of the division for a €30 million note, Bally’s remained involved through back doors. The group holds so-called penny warrants, which grant the right to a 19.99% equity stake in the spun-out business.

The carved-out business is operationally managed by Sweden-registered Silverspin AB, based in Malta. Investigations reveal that three directors of Silverspin previously served as executives in Bally’s international division. One of these directors is Daniel Talisman, who, as the former General Counsel of GVC Holdings (now Entain), already has experience with complex B2B structures in restrictive markets like Turkey.

Background

The Japanese government under Prime Minister Fumio Kishida has drastically tightened its stance against online gambling. Between 2022 and 2024, arrests related to illegal gambling increased by nearly 400%, reaching 279 cases. In this environment, the activities of brands like Vera&John, CasinoSecret, and Yuugado—which hold market leadership in Japan according to Blask data—act as a major concern for Western regulators.

“Let me remind you that if an operator licensed in Great Britain is offering illegal gambling in another jurisdiction, any such findings may give rise to concerns relating to their suitability to hold a GB licence.” - Andrew Rhodes, CEO of the Gambling Commission

The UKGC has clarified that a licensee’s suitability is also influenced by its behavior abroad. A compliance expert pointed out that economic interests in operations within illegal markets could represent an integrity issue. As Bally’s plans the takeover of evoke, the Commission must approve the change of corporate control. Should the authority deny suitability, there is no room for compromise.

Why it matters for German players

For German players, this case serves as a clear warning regarding the reliability of providers without a German license. In Germany, the State Treaty on Gambling (GlüStV 2021) strictly regulates which companies are allowed to operate legally. Only operators listed on the official whitelist of the Joint Gambling Authority of the States (GGL) provide a legally secure environment. Brands that operate in gray markets, as seen in Japan, often bypass player protection measures that are standard in Germany.

Anyone playing at a provider without a GGL license has no legal recourse in disputes and is not protected by the LUGAS system. This system monitors the monthly deposit limit of €1,000 and ensures that the stake limit of €1 per spin on virtual slots is maintained. The current developments at Bally’s show that large international corporations often try to take profits from unregulated markets, which ultimately jeopardizes their reliability in strictly regulated markets like Germany or the UK.

What it means for GGL-licensed casinos

German casinos with a GGL license must undergo strict integrity checks. The Bally’s case illustrates why the GGL pays such close attention to international standards. An operator that violates laws in one country risks its approval in Germany as well. The GGL whitelist is the only reliable tool for players to ensure their money is with a company not involved in illegal business in Asia or elsewhere. The transparency required from German licensees is intended to prevent exactly such obscured profit-sharing in black market activities.