Greater China thought to account for half of illegal betting industry’s annual revenue

October 12, 2023 China Crime & Legal iGaming & Gambling

According to a report co-authored by The Mekong Club and the Asian Racing Federation (ARF), which works to combat modern slavery and related crimes, the illegal betting revenue generated by the Philippines, Cambodia, Myanmar, and Laos totals about $425 billion.

The paper emphasises how unlawful betting in these areas finances illegal operations like drug trafficking, undermines the integrity of governments, and generates billions in yearly illicit earnings.

Greater China is thought to be responsible for at least half of the $1.7 trillion yearly turnover of the illicit betting industry worldwide. It might reach $425 billion if businesses in the four countries indicated produce an extra 50% of turnover.

The research also claims that Asia is the biggest sports betting market and that 80% of all bets are placed illegally globally. Both legal and illicit betting take place in the area, making up around 65% of total betting volume worldwide, with the criminal market perhaps being up to 10 times greater than the legal one.

The research emphasises that there is a huge amount of unlawful betting activity in Asia as a consequence of its enormous population and cultural thirst for gaming. Due to the dearth of competitive, well-regulated legal betting choices in many countries, illicit operators—often connected to organised crime—have stepped in to fill the void. An industry worth $1 trillion has been created out of illicit betting thanks in large part to the internet.

In the four nations examined by the survey, between 75,000 and 250,000 individuals are thought to work in the offshore betting and cyber-scam businesses. Tens of thousands of individuals are being detained in circumstances similar to contemporary slavery to labour in these enterprises, according to the research. Some are enlisted via phoney job postings, their passports are seized, and they are compelled to work. There have also been allegations of torture and physical abuse, including cases when female victims were coerced into performing sex acts.

According to the report’s findings, illicit betting is a burgeoning industry for many organised crime organisations operating across Southeast Asia that engage in human trafficking and other illegal crimes. It states that in 2023, this overlap of illegal gambling, fraud, forced prostitution, modern slavery, drug trafficking, and other crimes may spread across Asia and beyond.