Gangs shift from Macau casinos to poorly regulated countries: report

Casino criminals have moved from Macau to other parts of Asia, according to a report issued by The Weekend Australian.

The report has noted that gangs are setting up “scam centers”, in compounds in less regulated areas of Southeast Asia including Myanmar, Cambodia, Thailand, Laos and The Philippines to defraud unsuspecting people in higher income countries such as Australia and Singapore.

In an interview with the newspaper, executives from the Australian office of global risk and security company Kroll, who have been studying the regional shift in the industry over the past few years, warn that while the criminal gangs which were associated with junket operators can no longer use casinos, they are still using online betting sites to launder money, helping to transfer money from drug smuggling back to Asia, as cited in the report.

This comes as China has deepened its crackdown on junket operators catering to its wealthiest gamblers.

In 2021, dubbed “Junket King,” Alvin Chau of Suncity was arrested in a sweeping crackdown. Another arrest was made in just less than two months as authorities arrested Levo Chan of Tak Chun Group, Macau’s second-largest junket operator.

This year, Macau has again seen a reduction of licensed junkets after figures from the government show the number of gaming promoters has been slashed to 18.

The figure represents 50% of 2023’s numbers, according to information from the Gaming Inspection and Coordination Bureau (DICJ).

The latest reduction comes after the government enforced the largest gaming law overhaul in Macau’s history, as well as the junkets law, which states that junkets can no longer engage in revenue share arrangements with concessionaires.

Meanwhile, Wood said that casino gangs “which were active in Macau have been forced out with the arrests of some key players.”

“They have moved to new areas including The Philippines, and less regulated areas including special economic zones in Myanmar where they can operate in an unimpeded way,” said Wood, as cited in the report.

“As a result of enforcement and regulatory activities in Macau (including the arrest of key players in junket such as Alvin Chau), and the restrictions in accessing physical casinos as a result of Covid, junket operators – which previously provided a significant channel for money laundering in Australia, Southeast and North Asia – have moved their operations to poorly regulated countries and regions in the Mekong and moved operations online,” she said.

“Criminal networks closely associated with junkets have also diversified into other activities including cyberfraud,” the expert added.

A report issued by the UN estimates that online gambling market in the Asia-Pacific region is the fastest growing in the world, adding that over USD145 billion in cross-border illegal capital outflows from China were facilitated through offshore gambling websites and casinos in 2020. Staff Reporter