The International Federation of Horseracing Authorities (IFHA) is shining a spotlight on the continued issue of illegal gambling in its latest quarterly update.
The November 2024 Bulletin provides a comprehensive overview of global efforts to combat illegal betting and its associated crimes. The document, authored by multiple experts in racing integrity and financial crime, highlights the transition of a regional council into a global body, offers case studies from regions heavily affected by illegal gambling, and underscores the broader implications of these activities.
One of the key news is the announcement that the Asian Racing Federation’s Council on Anti-Illegal Betting is transitioning to become a global entity under the IFHA. This development reflects the need for a unified international approach to combat illegal betting, which is increasingly a transnational issue.
The Council, originally formed in 2017, has been a leading think tank on illegal betting and related financial crimes. With its transition to a global body, the IFHA Council will now collaborate with international stakeholders, including INTERPOL, the United Nations Office on Drugs & Crime (UNODC), and the World Lottery Association. This move aims to address the growing challenges posed by offshore betting operations and unlicensed gambling platforms that exploit regulatory gaps across jurisdictions.
The situation in the Philippines has also not gone unnoticed by the organization, with the report examining the Philippine government’s recent decision to ban Philippine Offshore Gaming Operators (POGOs). These entities, which had operated under a regulatory framework since the early 2000s, became hubs for criminal activity, including human trafficking, cyber fraud, and money laundering.
The report highlights how raids throughout 2023 and 2024 uncovered extensive criminal networks linked to POGOs. Despite the ban, many operators are rebranding as legitimate businesses or relocating to other jurisdictions with weaker regulatory oversight, such as Timor-Leste and the Pacific Islands. The displacement of these operations is raising concerns about the global spread of the illegal gambling model and its associated crimes.
The economic impacts of the ban are also discussed, including potential job losses and a decline in government revenue. However, the report argues that these losses are outweighed by the broader social and legal costs of allowing such operations to continue unchecked.
The Isle of Man is presented as a case study demonstrating how illegal gambling operations are extending their reach globally. In 2024, authorities in the Isle of Man suspended the licenses of King Gaming Ltd and Dalmine Ltd following investigations linking these companies to illegal betting and related scams.
The bulletin describes how these operations employed tactics such as “pig-butchering” scams, where individuals are lured into fraudulent schemes. Links to larger criminal syndicates operating in Southeast Asia, particularly the Philippines, are also detailed. The report highlights how the Isle of Man, which claimed to have a lenient regulatory environment, became a hub for these activities, illustrating the global nature of the problem. Authorities on the island have since denied these claims, but questions about the effectiveness of local rules governing offshore gambling remain.
Illegal betting is estimated to generate $1.7 trillion globally, according to the UNODC, and is often intertwined with other crimes such as money laundering, human trafficking, and corruption. The bulletin underscores how the borderless nature of online gambling enables criminal networks to operate across jurisdictions, exploiting regulatory loopholes and technological advancements.
Efforts like INTERPOL’s Operation SOGA X are emphasized as critical to tackling this issue. The operation resulted in over 5,100 arrests and the recovery of $59 million in illicit proceeds. The dismantling of illegal betting sites and the rescue of human trafficking victims highlight the far-reaching impacts of such initiatives.
