A recent study highlights how the POGO ban in the Philippines has led to the spread of illegal betting operations to new regions.
A recent study conducted by James Porteous, Head of Research for the International Federation of Horseracing Authorities (IFHA) Council on Anti-Illegal Betting and Related Crime, reveals troubling trends that extend far beyond the Philippines. In his report, titled "The Ban on Philippines POGOs and the Consequent Global Expansion of Illegal Betting Hubs," Porteous underscores the alarming consequences of the Philippine government's decision to shut down its Philippine Offshore Gaming Operators (POGOs) industry. Rather than solving the problem of illegal gambling, the ban has simply pushed organized crime syndicates to export their operations to other regions of the world.
Porteous, who also serves as Senior Manager of Due Diligence and Research at The Hong Kong Jockey Club, cautions that illegal betting operations are no longer isolated incidents but part of a broader and more dangerous criminal network. He notes that the illegal gambling industry is often a key pillar of transnational crimes, including human trafficking, cyber fraud, and corruption. “Illegal betting is not a victimless crime,” Porteous writes in the IFHA’s November 2024 Quarterly Bulletin, “but a fundamental component of a much larger criminal web.”
A Dangerous Trend: The Global Reach of POGO-Like Operations
The Philippines’ crackdown on its POGO industry was intended to dismantle a growing problem of illegal online gambling. However, as Porteous points out, the closure of POGOs has simply driven these criminal operations elsewhere. In his research, he explains that many of the operators have migrated to regions where they have already established infrastructure or connections. Past disruptions, such as in 2016, saw similar illegal betting operations proliferate in countries like Laos, Cambodia, and Myanmar, where minimal regulatory oversight allowed these activities to thrive.
These Southeast Asian nations have since become major hubs for cyber-scam operations and illegal betting syndicates, continuing to operate with impunity on a global scale. While some countries within the Association of Southeast Asian Nations (ASEAN) are making efforts to combat these illegal activities, the challenge remains enormous. Corruption, political instability, and weak legal frameworks in many of these regions often hinder effective enforcement. Moreover, the enormous financial incentives that come with illegal betting make it difficult to hold law enforcement accountable.
“The massive profits generated by illegal betting and related crime provide ample ammunition to encourage politicians and law enforcement to look the other way, whatever is said in public statements,” explains Porteous. Despite public statements pledging to tackle these issues, the overwhelming power of criminal networks continues to undermine efforts to curb illegal gambling.
The Philippines POGO Ban's Ripple Effect
Perhaps the most disturbing aspect of Porteous’ findings is the expanding footprint of these illegal betting operations beyond Southeast Asia. While scrutiny within Asia is tightening, criminal syndicates have adapted by shifting their operations to regions where awareness of such activities remains limited.
The report highlights several high-profile international cases that demonstrate the growing scope of the problem. In late 2023, a Taiwanese crime syndicate was discovered operating in Peru, where they had trafficked more than 40 Malaysian nationals. Similarly, in April 2024, authorities in Zambia arrested 77 individuals, including 22 Chinese nationals, linked to illegal gambling networks. More recently, in October 2024, 120 Chinese nationals were arrested in Sri Lanka for involvement in POGO-like operations.
These incidents illustrate a troubling pattern of illegal gambling expanding into Europe, the Middle East, Africa, and South America. In particular, the Middle East has emerged as a significant hub for both laundering the proceeds of illegal gambling and hosting such operations. The Humanity Research Consultancy, an NGO that monitors transnational crime, has identified at least seven illegal betting and online fraud operations in Dubai. Additionally, individuals with ties to these illegal networks have been linked to "legitimate" businesses in European countries such as Georgia and Montenegro. These areas have also reported increasing incidences of illegal gambling and human trafficking.
The Need for a Global Response
The increasing global spread of illegal betting is a call to action for greater international cooperation. While the Philippines’ POGO ban may have disrupted gambling operations in Southeast Asia, the study highlights how quickly organized crime syndicates can adapt and expand into new regions. This evolution of criminal networks demands a coordinated, global response to prevent further damage.
Porteous stresses that tackling the issue of illegal betting requires more than just stronger enforcement at the national level. Countries across the globe must collaborate more effectively to address the international dimensions of the problem. This includes not only improving enforcement but also enhancing communication and coordination between different stakeholders, including governments, law enforcement agencies, and international organizations.
The spread of POGO-like operations to regions such as the Middle East, Africa, and Europe highlights the urgent need for greater vigilance. While the financial rewards of illegal betting continue to fuel these operations, they also create significant social and economic harm in the regions they affect.
Comments