Casinos and Special Economic Zones (SEZs) across Southeast Asia are increasingly being exploited by transnational criminal networks, according to a new briefing from the United Nations Office on Drugs and Crime (UNODC).
The report highlights how gambling operations, especially those conducted online, are being used to launder money and facilitate cyber-enabled fraud. It outlines a three-step laundering process: illicit funds are funneled into gambling platforms, then obscured through methods like in-game transfers or proxy betting, and finally withdrawn as seemingly legitimate winnings.
The UNODC expresses concern over the rise of white-label online gambling platforms, which allow operators to quickly set up online casinos under existing licensed brands. These systems are proving attractive to criminal groups, with actors in regions like Hong Kong, Macau, Taiwan (PoC), and the Philippines becoming increasingly involved.
Supporting this illicit ecosystem are underground banking channels, misuse of cryptocurrencies, and online games laced with malware. The report also connects these operations to human trafficking, especially in heavily guarded compounds where victims are forced to run scams targeting foreigners.
As countries like Thailand consider legalizing casinos, the UNODC urges caution. Without robust oversight and regulation, such moves could further fuel criminal activity.
To address the threat, the report recommends stricter licensing processes, greater transparency among operators, improved international cooperation, and better protections for victims of trafficking.
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