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ACAMS analysis: Southeast Asian gaming sector exploited for fraud, money laundering and trafficking
An ACAMS moneylaundering.com analysis, citing FATF, UNODC and other bodies, says licensed casinos and illegal platforms in Southeast Asia are used to launder criminal proceeds. Crackdowns have often displaced operations rather than ended them.
Illegal gaming platforms and licensed casino infrastructure in Southeast Asia are being used to support fraud, money laundering and human trafficking, according to an analysis by the ACAMS moneylaundering.com legal team. The analysis says criminal groups use gaming facilities, payment channels and existing business networks to generate and disguise illicit proceeds.
The Financial Action Task Force published findings on September 9 on the risks posed by illegal and unlicensed offshore gaming platforms, which in many regions now rival or exceed their regulated competitors. The UN Office on Drugs and Crime (UNODC) names China as the largest source of demand for the region's illegal online gambling ecosystem, while digital payments and cryptocurrency have widened the channels for moving funds across borders.
In a 256-page report, UNODC said transnational criminal organizations had taken over gaming facilities, manpower and payment systems. Methods such as cash-to-chips conversion and hidden multiplier bets can give illicit money an appearance of legitimacy, whether through licensed venues or online platforms whose licences may be genuine or false. The agency added that these groups bribe and co-opt politicians and officials to obtain licences and cross borders easily.
Casinos and scam compounds sometimes share trafficked workers, premises and digital infrastructure such as IT support and internet connectivity. Many sites are in border areas of Thailand, Myanmar, Cambodia, Laos and China, with some in the Philippines. The Asia/Pacific Group on Money Laundering reported that several casinos and hotels began doubling as cyber-scam hubs during the pandemic, when travel limits cut gaming tourism. Locations cited include Laos' Golden Triangle Special Economic Zone, home to the Kings Romans casino complex, and Shwe Kokko in Myanmar.
Authorities have responded with sanctions and alerts. On July 30 the EU designated seven people and three entities tied to crypto investment fraud, trafficking and abuses at suspected compounds in Myanmar and Cambodia, including Jin Bei Group chair Zhu Zhongbaio. A September 3 FinCEN alert said scam operators link up with laundering organisations and underground banks through guarantee marketplaces, citing Cambodia's Huione Group. The Isle of Man raised its gaming-sector risk assessment to medium-high on February 24 and urged local businesses to reconsider ties with e-gaming firms linked to East and Southeast Asia.
Online gambling was banned in Cambodia in 2019 and offshore gaming in the Philippines in 2024, and the Philippine Senate continues to hear calls for further limits. Indonesia arrested 321 foreign nationals on May 10 in an illegal online betting crackdown. UNODC cautioned, however, that enforcement often displaces criminal activity instead of eliminating it, noting that action at KK Park and Shwe Kokko largely dispersed and decentralized operations.
Based on reporting by igamingtoday.