Key points:
- UNODC links casinos and online gambling to money laundering and scam networks
- Poor regulation and political protection aiding transnational crime
- Call for stronger oversight amid rapid expansion of digital gambling platforms
Casinos and Special Economic Zones across Southeast Asia are increasingly being used as vehicles for transnational crime, according to a briefing released by the United Nations Office on Drugs and Crime.
The report details a growing reliance on gambling operations to facilitate illicit finance and cyber-enabled fraud.
The document identifies a three-stage model of money laundering. Funds are first deposited into gambling platforms, then obscured through in-game transfers or proxy betting before being withdrawn under the guise of legitimate winnings. These platforms, often tied to online casinos, are exploited by criminal organisations operating with limited oversight.
The rise of white-label online gambling platforms is a key concern, according to the report. These allow operators to quickly establish digital gambling operations under a licensed brand. The UNODC notes that criminal actors in Hong Kong, Macau, Taiwan (PoC) and the Philippines are increasingly connected to such schemes.
Underground banking networks, cryptocurrency abuse and malware-based games are among the digital tools supporting this ecosystem. The report also documents links to human trafficking, particularly in compounds where forced labour is used to conduct scam operations targeting foreign victims.
With countries such as Thailand exploring new casino legislation, the UNODC has urged caution. It warns that, without strong governance, any legalisation may worsen current trends.
Recommendations include mandatory licensing scrutiny, increased transparency for operators, cross-border information sharing and protection frameworks for trafficked persons.
