A recent study by James Porteous, Head of Research for the International Federation of Horseracing Authorities (IFHA) Council on Anti-Illegal Betting and Related Crime, highlights the far-reaching consequences of the Philippines’ POGO ban, particularly the exportation of the country’s illegal betting crime model to new regions.
‘The very real worry is that organized crime syndicates are exporting their model to new territories and suborning regulators and officials by presenting as ‘legitimate’ enterprises,’ Porteous writes in the research entitled ‘The Ban on Philippines POGOs and the Consequent Global Expansion of Illegal Betting Hubs,’ shared in the IFHA Council’s November 2024 Quarterly Bulletin.
This highlights a dangerous and evolving trend: illegal betting operations are not isolated incidents but part of a much larger criminal framework that includes organized crime, human trafficking, cyber fraud, and corruption.
As Porteous notes, “Illegal betting is not, as many people wrongly believe, a victimless crime, but a key pillar supporting a vast range of other transnational criminality.’ The global community must understand the interconnectedness of these illegal activities and the critical need to combat them at an international level.”
James Porteous is also Senior Manager of Due Diligence and Research at The Hong Kong Jockey Club.
Displacement of operators
The research notes that the Philippines’ decision to shutter its POGO industry has not eliminated the problem—it has merely driven operators to seek out more hospitable environments.
Porteous warns that some of these operators will migrate to jurisdictions where they already have infrastructure or connections. Past industry upheavals, such as in 2016, saw the proliferation of POGO-like illegal betting operations in countries like Laos, Cambodia, and Myanmar. These regions have since become hotspots for cyber-scam compounds and organized crime syndicates, continuing to operate globally with minimal scrutiny.
While ASEAN countries are showing some degree of coordination in combating these operations, particularly under pressure from China, the challenge remains daunting. The situation is exacerbated by endemic corruption, political instability, and weak legal frameworks in many of these countries.
“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,” Porteous explains. Despite public commitments to combating the issue, the overwhelming profits of illegal betting often enable criminals to bypass legal constraints.
Perhaps the most alarming trend identified in Porteous’ research is the spread of these illegal betting operations outside of Asia. As scrutiny in Asia increases, crime syndicates have begun exporting their models to less familiar regions, where awareness of these activities is still limited. The research outlines a troubling series of global incidents that illustrate the reach of these criminal networks.
In late 2023, a Taiwanese-organized crime syndicate was uncovered in Peru, where over 40 Malaysian nationals were held captive. In April 2024, Zambian authorities arrested 77 suspects, including 22 Chinese nationals, connected to similar syndicates.
More recently, in October 2024, 120 Chinese nationals were arrested in Sri Lanka in connection with POGO-like operations. These cases represent just a small fraction of the global spread, which has also seen the emergence of illegal betting operations in Europe, the Middle East, South America, and Africa.
The Middle East, in particular, has become a key hub for both laundering profits from illegal betting and the operations themselves. Humanity Research Consultancy, an NGO, has identified seven illegal betting and online fraud operations in Dubai. Additionally, key figures linked to Asian illegal betting operations have been found to own ‘legitimate’ businesses in European jurisdictions such as Georgia and Montenegro.
Notably, these countries have also experienced similar illegal betting and trafficking operations, suggesting that the POGO model has successfully taken root far beyond the Philippines.
Need for global cooperation
As illegal betting operations continue to evolve and expand, there is an urgent need for greater international cooperation to combat the spread of organized crime, the expert notes. While the Philippines’ POGO ban may have disrupted operations in Southeast Asia, it has also shown how these syndicates are capable of quickly adapting and shifting their operations to other regions.
Addressing this issue will require not only stronger enforcement mechanisms but also enhanced coordination among global stakeholders, particularly in regions like Europe, the Middle East, and Africa, where the impacts of illegal betting may be less visible.
