The government of East Timor has decided to cancel all licenses for online gambling and betting citing security and social stability concerns

According to news agency Lusa, this resolution was approved during a cabinet meeting on Wednesday, as announced by the Minister for Cabinet Affairs, Agio Pereira. The government’s statement outlined concerns over the potential risks these activities pose to the nation’s security, social stability, and economic integrity.

The small Southeast Asian country has quietly launched its first foray into the offshore gaming sector, granting an inaugural license to Golden River Universe (GRU) in April under the supervision of the newly established Inspectorate General of Gaming (IGJ).

The concession was said to have been completed after over eight months of regulatory collaboration with the IGJ.

The resolution not only nullifies existing licenses but also halts any ongoing procedures for issuing new licenses, effectively prohibiting future gambling ventures.

The Timorese government noted this decision aims to safeguard the country’s international reputation in light of these identified threats.

The decision follows alarming reports from the United Nations Office on Drugs and Crime (UNODC), which highlighted the rise of criminal networks in Oecussi, a Timorese enclave located on the Indonesian side of the island.

Investigations have indicated a troubling infiltration of digital criminal activity in the region, exacerbated by recent arrests of 10 individuals suspected of illegal gambling and computer fraud.

Experts suggest that Oecussi has become a target for organized crime, with parallels drawn to other centers of illegal online gambling such as Cambodia.

The UNODC report notes that the regional expansion of such criminal enterprises poses a severe risk to East Timor, especially as the nation prepares for its upcoming membership in the Association of Southeast Asian Nations (ASEAN) in October.

The Special Administrative Region of Oecusse-Ambeno (RAEOA)—particularly its Oecusse Digital Centre (ODC) free trade zone—was said to have shown regulatory vulnerabilities that criminals appear to be exploiting under the guise of legitimate investment.

Compounding these issues, the report also points to potential conflicts of interest involving government officials. It cites a hotel in East Timor managed by individuals connected to the government, which allegedly serves as a base for companies engaged in illicit activities.

It also identifies links to the 14K Triad, including Wan Kuok-koi, better known as “Broken Tooth,” a former Macau gangster whose gambling and junket ventures have long intersected with illicit finance across Southeast Asia.

East Timor’s president José Ramos-Horta commented in August of last year that his government had no interest in land-based casinos in the country but was in favor of allowing online gambling licenses targeting the overseas gambling market.

However, the new decision brings a sudden halt to the nascent online gaming industry in the country.