The UFC is facing scrutiny amid concerns about illegal betting practices linked to its events. Australia's leading gambling lobby has raised alarms about offshore wagering companies being promoted during the UFC card in Perth on Saturday. These concerns stem from sponsorships and promotions involving fighters.

One of the companies in question is Leon, which has been banned in Australia by the Australian Communications and Media Authority (ACMA). Several fighters have been associated with Leon through social media promotions and links offering free bets, although not all of them are participating in the Perth event. The UFC and Leon were approached for comments regarding any guidelines provided to fighters to ensure compliance with local regulations. To avoid promoting illegal activities, the names of the athletes involved have not been disclosed.

Leon is registered in Anjouan, a small island off the coast of Africa, and its website is operated by a company based in Belize. The company claims on its homepage that it has "passed all applicable regulatory compliance and is legally authorized to offer gaming operations," but it does not specify the country of authorization. Despite being banned in Australia, the site features odds on Australian sporting events.

Violating regulations by providing or advertising illegal gambling services can result in significant fines, reaching nearly $2.5 million per day for individuals and about $12.4 million for companies. Kai Cantwell, CEO of Responsible Wagering Australia, stated that the authority lacks the necessary power to effectively combat offshore gambling, which poses a significant threat to the industry. He noted that illegal offshore markets are estimated to be worth around $1.6 billion annually, accounting for approximately 15 percent of the total market.

"Australian athletes fronting offshore gambling brands is extremely disappointing, yet it highlights how these companies deliberately target high-profile athletes and influencers to appear credible to the public," Cantwell said. He emphasized the confusion that arises when athletes struggle to differentiate between licensed and unlicensed operators, which complicates matters for ordinary Australians.

Cantwell accused overseas wagering companies of violating regulations by refusing to pay out winnings, failing to verify ages or self-exclusion registers, and not paying taxes in Australia. He also pointed out that these companies are not subject to Australian consumer protections. "The more restrictions governments place on licensed operators, the more attractive these illegal sites become," he added.

Responsible Wagering Australia has criticized the ACMA for not taking adequate action against influencers and social media personalities promoting banned bookmakers. The ACMA stated it could not comment on specific content related to the UFC, as each situation depends on its circumstances. It acknowledged awareness of the Leon service, which was investigated and found to violate the Interactive Gambling Act in 2025. The ACMA has taken steps to block the service and continues to monitor and act against mirror sites.

The issue of Australians using offshore wagering companies is central to the gambling lobby's argument against blanket advertising bans, as the federal government considers its response to a significant gambling harm report. Australian bookmakers argue that such bans would drive punters to unregulated offshore sites, potentially causing them more harm. However, harm reduction advocates dispute this claim, citing limited evidence to support it.

The parliamentary committee's report, titled "You Win Some, You Lose More," recommended that the Australian government develop technology to block offshore gambling sites more effectively. It also suggested blocking transactions to illegal gambling operators by collaborating with banks and payment system providers. The Albanese government has yet to respond to the report's recommendations, which were released over two years ago.