UNODC Warns of Growing Criminal Exploitation of Southeast Asia’s Gambling Sector

Gambling Platforms at the Centre of Illicit Finance

The UNODC briefing outlines how gambling operations, both physical and online, are increasingly used to launder money and facilitate organised scams. Criminal networks exploit these platforms through a three-stage process: depositing illicit funds, disguising transactions via in-game mechanisms or proxy betting, and withdrawing the proceeds as seemingly legitimate winnings.

The rapid growth of white-label online gambling platforms is flagged as a particular concern. These services allow operators to quickly launch digital casinos under an existing licensed brand, creating opportunities for criminal groups to obscure ownership and financial flows.

Political Protection and Regulatory Gaps Fuel Expansion

Weak regulatory environments, combined with political protection in some jurisdictions, are enabling the expansion of criminal networks tied to gambling operations. The report draws attention to the involvement of actors based in Hong Kong, Macau, Taiwan (PoC), and the Philippines, all of whom are increasingly linked to illicit gambling activities across the region.

Alongside traditional underground banking systems, the criminal infrastructure supporting these operations now includes the use of cryptocurrencies, malware-based games, and sophisticated digital tools to mask illicit activities.

Beyond financial crime, the UNODC briefing documents disturbing connections between gambling-linked operations and human trafficking. In particular, it notes the use of forced labour in compounds dedicated to scam operations, where trafficked individuals are coerced into defrauding foreign victims through cyber-enabled schemes.

This aspect adds an urgent humanitarian dimension to the growing concerns around unregulated gambling sectors in Southeast Asia.

Calls for Stronger Oversight and Governance

With several Southeast Asian countries, including Thailand, considering new legislation to legalise casinos, the UNODC has called for caution. It warns that without robust regulatory frameworks, any expansion of legal gambling could inadvertently fuel the very criminal activities it aims to control.

The report’s recommendations include:

• Mandatory and thorough licensing scrutiny.

• Greater transparency for gambling operators.

• Enhanced cross-border cooperation and information sharing.

• Protective measures for victims of trafficking and forced labour.

As digital gambling platforms continue to grow rapidly, the UNODC stresses that stronger regional collaboration and oversight will be critical to prevent further criminal exploitation.