Illegal Gambling Linked to Crime in Southeast Asia

Illegal gambling platforms and licensed casino operations are increasingly being exploited by criminal networks involved in fraud, money laundering and human trafficking across Southeast Asia, according to an analysis by the ACAMS moneylaundering.com legal team. Gaming venues, payment systems and established commercial networks are being used to generate illicit revenue and conceal its origins.

On September 9, the Financial Action Task Force (FATF) published findings examining the risks associated with illegal and unlicensed offshore gaming platforms. In several markets, these operations have grown to rival or surpass regulated gambling businesses.

Southeast Asia is a particular area of concern. The U.N. Office on Drugs and Crime (UNODC) identifies China as the largest source of demand for the region’s illegal online gambling ecosystem. Digital payment services and cryptocurrencies have also created additional channels for transferring criminal proceeds across national borders.

Gaming Transactions Used to Conceal Illicit Proceeds

A 256-page UNODC report released on July 26 found that transnational criminal organisations had appropriated video gaming facilities, staff and payment infrastructure to support large-scale fraud and human trafficking.

Transactions involving the conversion of cash into casino chips, concealed multiplier bets and other gaming activities can help give illicit funds the appearance of legitimate earnings. Such methods may be used through licensed gambling businesses as well as online platforms operating with either genuine or fraudulent licensing claims.

The UNODC also reported that criminal groups bribe or influence politicians and government officials to secure licences and facilitate cross-border movement.

Casinos and Scam Compounds Use Shared Infrastructure

Casino businesses and online scam compounds sometimes rely on the same trafficked workers, physical locations and digital resources, including IT services and internet connections.

These operations are frequently found in border regions connecting Thailand, Myanmar, Cambodia, Laos and China, while some have also been identified in the Philippines.

On July 7, the Asia/Pacific Group on Money Laundering reported that several casinos and hotels in the region began serving as cyber-scam centres during the pandemic. Restrictions on international travel had reduced tourism to gambling destinations, contributing to the shift.

Identified locations include the Golden Triangle Special Economic Zone in Laos, where the Kings Romans casino complex is situated and Shwe Kokko in Myanmar.

International Measures Target Criminal Networks

On July 30, the European Union sanctioned seven individuals and three entities linked to cryptocurrency investment scams, human trafficking and abuses at suspected criminal compounds in Myanmar and Cambodia. Some of the operations were reportedly run by Prince Holding Group.

Those targeted included Zhu Zhongbaio, chair of Jin Bei Group. The company operates casinos and related businesses in Sihanoukville, Cambodia, including the Jin Bei 4 compound.

A separate alert issued by the U.S. Financial Crimes Enforcement Network (FinCEN) on September 3 warned that scam operators frequently use guarantee marketplaces to connect with money laundering organisations, underground banking networks and other intermediaries. Cambodia-based Huione Group was cited as an example.

Isle of Man Investigation Highlights Wider Risks

The analysis also referenced an investigation launched in April 2024 in the Isle of Man into a multimillion-dollar investment scam allegedly operating from a hotel and former bank offices associated with the now-defunct King Gaming.

On February 24 this year, the jurisdiction raised its risk assessment for the gaming sector to medium-high. Authorities subsequently advised local businesses to reassess relationships with e-gaming companies linked to East and Southeast Asia.

Enforcement Measures Push Criminal Operations Elsewhere

Cambodia prohibited online gambling in 2019, while the Philippines banned offshore gaming in 2024 as part of efforts to address human trafficking, money laundering and other criminal activities. Philippine senators continue to call for further restrictions.

In Indonesia, authorities arrested 321 foreign nationals on May 10 during a crackdown on illegal online betting.

However, the UNODC cautioned that enforcement does not necessarily dismantle criminal networks. Its findings on Myanmar’s KK Park and Shwe Kokko indicated that crackdowns often scattered and decentralised operations rather than bringing them to an end.