Asia aims to snip illegal gambling
HONG KONG: Law enforcement and regulatory forces in Asia say they are gearing up to fight illegal gambling operators who have ramped up activities in the region ahead of the World Cup, making use of savvy technology and cryptocurrencies to evade prosecution.
Illegal gambling on the cup is prevalent in countries like Thailand and Malaysia, where football is hugely popular, but which don’t have legal betting alternatives, gambling industry experts say. Even in South Korea and the Chinese territory of Hong Kong - where betting is legal under registered bodies - illegal gambling on average dwarfs the legal market, they say.
Illegal bookmakers have shifted to online and mobile platforms, which offer a wider range of betting options than legal vendors, making it harder for enforcement agencies to police, the experts say.
Hong Kong and Macau police have said crime syndicates have often used platforms like Wechat to place bets.
Online payment providers and cryptocurrencies such as Bitcoin have also made it easier for illegal operators to facilitate illegal bets, according to Interpol, and the Hong Kong Jockey Club, which runs Hong Kong’s horse racing and football betting franchise.
“There is a need to develop and execute a sustainable enforcement strategy for a lasting impact against illegal betting and related transnational organised crime,” said Martin Purbrick, the club’s director of security and integrity.
The Jockey Club estimates Hong Kong’s illegal betting turnover this year, including the World Cup, will be at least $68 billion, compared to $6.5 billion in Singapore and $79 billion in South Korea annually.
Hong Kong earns around 5 percent of its budget from taxing legal gambling and views illegal betting as lost potential revenue. The Jockey Club put the potential loss at about HK$13 billion ($1.7 billion) this year.
Illegal bookmakers in Hong Kong are expected to reap HK$750 million during the World Cup alone, the club said.
Illegal betting this year is expected to be far larger than during the 2014 World Cup held in Brazil, helped by the closer time zones between Russia and countries in the Asia region.