Cyberfraud operations in Southeast Asia are rapidly evolving, with transnational organised crime groups integrating advanced technology and expanding their reach. This development was highlighted by the United Nations Office on Drugs and Crime (UNODC) in Bangkok, where investigators and analysts from across East and Southeast Asia discussed the increasing sophistication of these criminal networks.   

In its news release, UNODC said these operations are closely linked to underground banking and money laundering organisations that are becoming more prevalent throughout the region.  

During the two-day closed-door meeting, UNODC officials emphasised the importance of empowering regional investigators and analysts to disrupt these criminal activities. They stressed the need for governments to recognise the severity and global reach of this threat and prioritise solutions that address the rapidly changing criminal ecosystem.   

Authorities across Southeast Asia have identified hundreds of so-called "scam centres," where thousands of people have been trafficked to work in the lucrative illicit industry. Many individuals have fallen victim to sophisticated fraud schemes orchestrated by these criminal groups, resulting in significant financial losses. In the Philippines alone, more than 400 criminal enterprises are estimated to be in operation, with many Philippine Offshore Gambling Operators (POGOs) acting as fronts for transnational organised crime groups. This has led to a recent presidential ban on the sector which the Chinese government praised.  

The intersection of cyber-enabled fraud and the gaming industry has become a growing concern. Criminal networks are leveraging illegal online gambling operations to launder money and conduct fraudulent activities. This convergence complicates efforts to combat cybercrime, as the gaming industry provides a lucrative and complex front for these illicit operations. Measures to dismantle illegal online casino operations have been declared a national priority in several countries, including Cambodia, Indonesia, and Thailand.  

Despite these efforts, organised crime groups continue to diversify their operations into more remote parts of the region, such as autonomous territories controlled by non-state armed groups and other criminal hubs in and around the Golden Triangle. This ongoing pressure is likely to drive further innovation and expansion into more vulnerable areas. The UNODC said the need for a coordinated and comprehensive approach is critical to addressing these challenges effectively.  

UNODC continues to work with regional authorities to enhance awareness and develop coordinated responses to the shifting threat landscape. The organisation said there will be follow-up meetings and activities in the coming months, alongside a major threat analysis informed by the recent regional meeting. These efforts aim to improve the ability to trace and recover crypto-assets and e-money, share information and intelligence, and foster mutual understanding of the different legal and criminal justice systems to ensure swift and seamless investigative cooperation.?

In Brazil, Flamengo, the well-known football club, accidentally launched its sports betting platform, Flabet. The platform was online for 48 hours before being abruptly taken down.

Flamengo's accidental launch attracted fans and bettors who were able to deposit money before the platform was taken offline without notice. Flamengo and their partner, Pixbet, explained that the launch was due to a technical error during a testing phase.

Recently, Flamengo announced it was considering breaking away from traditional sponsorship deals to start its own betting platform, Flabet. The club planned to partner with sports betting operator Pixbet, which they currently work with in a traditional sponsorship capacity. Flabet would allow customers to wager on various teams and sports, not just Flamengo, similarly to other existing betting platforms.

Flamengo was set to present the Flabet project proposal to the club’s board, for approval. However, it appears that the club and its sponsor proceeded to make the platform operational and ready to launch before the final decision was taken.

Flabet's fate is not solely in the hands of the board of directors. Brazil’s law bans sports betting operators from owning stakes in sports clubs to avoid conflicts of interest. The partnership between Flamengo and Pixbet is seen by some as a way to circumvent the law and ultimately poses a threat to sports integrity. Board members might be compelled to reject the project for this reason, or the regulator could potentially oppose it.

Flamengo’s platform would be the first of its kind. The club’s board of directors will make a final decision this week. If approved, Flamengo stands to earn a minimum of R$82.5 million (nearly $15 million) over the next four years. Pixbet, which already has the Loterj (Rio de Janeiro Lottery) license to operate in the state, assured that the launch would occur only after obtaining all necessary authorisations.

Ahead of SiGMA East Europe, SiGMA has published its latest Market Report, focused on East Europe, with insights into the most active operators, affiliates, and their performance on various platforms. The report includes data collected from the Czech Republic, Poland, Hungary and Romania.

In affiliate marketing, leading operators vary by country. Betting-specific affiliate benchmarking data places Tipsport, Betclic, and Unibet at the top of the rankings. Casino-specific affiliate benchmarking reveals different operators in each country:

Ranking in search engines is a crucial success factor in iGaming. The SiGMA Market Report looked at which online gambling operators are doing the best job in SEO in Romania and Poland:

Flutter leads the market capitalisation rankings with GBP 27.6 billion, emphasising the financial strength required to lead in this competitive market. It is followed by Evolution (GBP 18.0 billion) and Entain (GBP 4.3 billion). The average market capitalisation of the companies analysed is GBP 3.7 billion.

Mergers and acquisitions, such as EveryMatrix's acquisition of FSB Technology and Gambling.com's purchase of Freebets.com, indicate a trend towards consolidation and market expansion.

The East Europe Market Report offers a concise overview of the industry's current status within the region. The industry is poised for growth due to technological progress and evolving consumer preferences, yet it must navigate a complex regulatory landscape. The outlook for online gambling in Eastern Europe is optimistic, with prospects for market expansion and innovation. However, achieving success hinges on operators' capacity to handle regulatory hurdles, sustain a robust online presence, and foster consumer trust. The full report (available here) is the result of a partnership between SiGMA Group and MECN’s Online Gambling Quarterly (OGQ).

Disclaimer: The facts provided are believed to be correct at the time of publication but cannot be guaranteed. Data, findings, and recommendations are based on the best available information at the time of publication and are subject to change over time.

‘The turnover just wasn’t really there’ said bookmakers as they gave mixed verdicts on betting trade at Glorious Goodwood.

The iconic horse racing event has recently been the subject of concern among bookmakers. They have expressed worries over the levels of betting interest at the event, as on-course firms offered a mixed review of trade at the meeting last week.

Betting turnover is down, and general sports fans are not seeking horse racing in the numbers they used to. There appears to be something that isn't resonating with the broader public as powerfully as it once did.

Tattersalls bookmaker Martin Davies reported a noticeable decrease in the number of tickets he took, which was down ten per cent compared with the previous full meeting in 2022. This decline in ticket sales is indicative of the reduced betting interest at the event.

Davies’ take and profit were also reduced by 14 per cent compared to two years ago. The average stake per slip also saw a decrease, going from ￡13.95 to ￡13.32. Despite these changes, the percentage profit stayed almost exactly the same at 12.65 per cent gross.

These figures suggest a shift in the betting landscape at Glorious Goodwood. While the profit margins remain steady, the reduced number of tickets and lower stakes per slip point to a decrease in overall betting activity.

On a sunny summer afternoon, the track consistently lives up to its “Glorious” reputation. This historic cultural branding is something most racecourses can only aspire to. The cost-of-living crisis that has gripped Britain for the past three years cannot be overlooked, but Waterworth believes there are other issues that racing as a whole needs to confront.

This year's Goodwood has sparked discussions among bookmakers and stakeholders in the horse racing industry. The focus is on understanding the factors driving these changes and exploring strategies to rekindle betting interest at Glorious Goodwood.

Goodwood, like most of Britain’s major tracks, has experienced a drop in attendance since the pre-Covid era. The five-day Festival meeting would typically attract attendance in the six figures. The 2019 figure of 100,104 fell to 95,359 by 2023. Adam Waterworth, Managing Director of Goodwood, observed from the advance sales figures in early July that this year’s total would likely be not more than last year.

Perched on a hill just outside Chichester, Goodwood offers breathtaking views of the Isle of Wight on clear days. This unique location makes it a valuable and marketable asset in British Flat racing. The third Duke of Richmond, who owned the 11,000-acre Goodwood Estate, established it. Since its first public meeting in 1802, it has continued to draw punters under the stewardship of the 11th Duke, eight generations of landed nobility later.

In a recent interview, Matt Damon fuelled excitement within the poker community by expressing his eagerness to reprise his iconic role as Mike McDermott. His comments have sparked renewed hope for a potential “Rounders” sequel, sending waves of anticipation through fans of the cult classic film.

?? Matt Damon

Could we really be getting a "Rounders" sequel after all these years?

cc: @briankoppelman @DavidLevien pic.twitter.com/wuqwcm9eOC

— Rich Eisen Show (@RichEisenShow) July 31, 2024

Damon, alongside co-star Ed Norton, has been vocal about their desire to revisit the high-stakes world of underground poker. The duo, who portrayed inseparable friends Mike McDermott and Lester “Worm” Murphy, believe that the evolution of the poker landscape since the original film’s release in 1998 presents a compelling opportunity for a new chapter.

“The one that we’ve been talking about for years, and I just saw Edward Norton a few weeks ago, all of us want to do it is a second Rounders movie,” Damon shared. “Because so much has happened in that poker world in the last 25 years. It would be fun to catch up with those guys.”

Despite its initial box office underperformance, Rounders has achieved legendary status among poker enthusiasts. The film’s gritty portrayal of the underground poker scene, coupled with the charismatic performances of Damon and Norton, has cemented its place as a cultural touchstone.

However, bringing a sequel to fruition faces hurdles beyond the actors’ enthusiasm. Damon acknowledged the complexities of securing the rights and assembling a suitable production team. “There’s a whole, you’ve got to figure out the chain of title and who owns it. So, we got to figure out a way to make a deal that makes sense for everybody, particularly the people who are going to make the movie,” he explained.

While the idea of a Rounders sequel excites many, not everyone is convinced it’s necessary. Some, like WSOP bracelet winner Will Jaffe, have mixed feelings. He tweeted, “Sounds great but we all know that this isn’t gonna happen. And if it does who are they gonna play? Rich part time businessmen? 50 year old circuit regs? Let some guys who’ve been in the grind take a shot. I’ll be Worm and Tony Dunst can play Mike Mcdrmt.”

Sounds great but we all know that this isn’t gonna happen. And if it does who are they gonna play? Rich part time businessmen? 50 year old circuit regs?

Let some guys who’ve been in the grind take a shot. I’ll be Worm and Tony Dunst can play Mike Mcdrmt
pic.twitter.com/IR7sodHthW

— WIll jaffe (@dankness3) August 1, 2024

Damon, now 53, acknowledges that a lot has changed since the original film, both in the characters’ lives and in the world of poker. Despite mixed opinions, the strong desire from many within the poker community for a sequel persists. As Damon and Norton continue to push for Rounders II, poker fans remain hopeful for another thrilling instalment in the saga of Mike McDermott and Worm.

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DraftKings has announced its intention to introduce a surcharge on customer winnings in several U.S. states. The company, which just earned $1.1 billion in Q2 and saw a 26% revenue increase, explains that this decision is a result of high tax rates.

In New York, Illinois, Pennsylvania, and Vermont, winning customers will have to pay a surcharge starting in January 2025. These states have in common a tax rate of over 20 percent and the presence of multiple operators.

In New York, the nine licensed operators are taxed over 50 percent of gross revenue. Pennsylvania has a tax rate of 36 percent, while Illinois has a graduated structure that ranges from 20 to 40 percent.

“As you know, many revenue-based taxes are passed along to the consumer. The online gaming industry has not pursued this approach in lower tax jurisdictions, but it has in higher tax jurisdictions such as Germany”, declared DraftKings CEO Jason Robins (pictured above).

“We are planning to implement a gaming tax surcharge on a customer’s net winnings in any state with a tax rate above 20% that has multiple sports betting operators. The surcharge will be fairly nominal to the customer. DraftKings will still absorb taxes up to 20%, so customers will only be impacted above this level,” Robins added.

Other solutions to cope with the high taxes were judged less “transparent” by DraftKings CEO. For instance, they could have lessened the odds, explained Robins, a measure they decided against. Other short-term money-saving options included cutting back on marketing and advertising spending.

According to commentators, this decision is a losing bet. Passing on the tax burden to bettors has indeed angered many stakeholders. If competitors do not follow suit and implement a similar surcharge, DraftKings could lose numerous customers. Rush Street Interactive was the first operator to announce on the 5th of August that the company “has no plans” to implement a surcharge.

Regulus Partners, a strategic advisory business, reacted: "To suggest this is brave is a euphemism, in our view, and the brand is already likely to be suffering damage. There is only one sensible thing for the DraftKings board to do now – publicly dump the policy, say sorry, and move on, while privately enquiring how on earth such a self-defeating policy could be publicly announced."

CEO Jason Robins explained: “Obviously, some people might just react negatively to the idea of being charged at all, but it's really fairly nominal and it makes a huge difference in our ability to make a reasonable margin and, more importantly, to compete with the illegal market, which pays no taxes and has the ability to invest 100 percent of their revenue into product and other things.

“It is an important step that consumers will ultimately understand,” Robins added. “If they feel the product and experience are better, then they would rather pay for that than go somewhere else that doesn’t have as strong a product.”

Stephane Pallez (pictured above), the reappointed Chairwoman and CEO of the Francaise des Jeux (FDJ) Group, has lauded the company’s recent performance and provided updates on the ongoing Kindred takeover.

The company’s H1 revenue surged by 11 percent year-over-year to reach €1.4 billion, driven by contributions from Zeturf and Premier Lotteries Ireland (PLI). Notably, FDJ’s online betting and gaming activities experienced a remarkable 15 percent increase, reaching €294 million, largely attributed to exceptionally favourable sports results.

The acquisitions of Zeturf and PLI fuelled a 40 percent rise in digital revenues to €201 million, with a 25 percent like-for-like increase in growing player numbers. Digital activities now constitute 15 percent of the group’s revenues, showcasing the increasing importance of online channels for FDJ.

The company’s lottery unit also posted strong performance, achieving a net income of €1.05 billion, marking a 5 percent increase compared to the H1 2022 results. Notable contributors to the lottery’s success were new instant win game launches and increased customer engagement with EuroDreams and EuroJackpot draws, described as “more attractive.”

Despite a slightly underwhelming performance in sports betting during the second quarter, FDJ benefited from unexpectedly favourable sports results, leading to a boost in revenue. Additionally, the company reported on its new international and payment services unit, which contributed revenues of €129 million.

FDJ expressed optimism regarding its new unit’s prospects, particularly with the upcoming launch of its Nirio payment solution for free-flow motorway toll payments and availability across its network of approved bars, tobacconists, and newsagents, as well as on the A14 and A79 motorways.

The group’s EBITDA increased by 23 percent to €370 million, with sports betting margins at 26 percent. FDJ also reaffirmed its 2024 revenue growth targets, aiming for around 8 percent growth and approximately 5 percent growth for gaming activities in France.

In the context of potential expansion, FDJ provided updates on its discussions with France’s competition authorities regarding the Kindred takeover. The company confirmed that the process is progressing as planned, with a decision on the buyout expected in November.

Pallez expressed confidence in the company’s trajectory, emphasising the positive trend and digital momentum witnessed since the beginning of the year. She also highlighted the strategic move represented by the potential acquisition of Kindred, which holds the promise of major international developments for the group and in the online sports betting and gaming domain.

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The Philippines has deported 1,698 foreign nationals working in illegal Philippine Offshore Gaming Operators (POGOs) since May 2023, according to the Presidential Anti-Organized Crime Commission (PAOCC). The crackdown aims to curb the illegal activities and crimes associated with unlicensed POGOs.  

PAOCC spokesperson Winston Casio announced the deportation numbers during an interview on state-run PTV-4, highlighting the latest batch of 27 illegal POGO workers deported recently.  

The PAOCC confirmed that all deported foreign nationals had been blacklisted, preventing them from re-entering the Philippines. However, an initial group of 33 workers set for deportation was reduced to 27 due to a hold-departure order against six individuals facing criminal charges. These six Chinese nationals remain under the custody of the Bureau of Immigration (BI) and are awaiting appropriate clearances before they can be deported.  

BI spokesperson Dana Sandoval emphasised that the deportation of these individuals would proceed once they resolve their pending cases in the Philippines and obtain necessary clearances. Immigration Commissioner Norman Tansingco reiterated the need for legal resolutions before deportation can be finalized.  

While illegal POGO workers are being deported, around 30,000 expatriates working in legitimate POGO firms face a different scenario. These workers might still be allowed to return to the Philippines unless a national government policy blacklists all individuals from Internet Gaming Licensees (IGLs), the former POGOs. Casio indicated that legal POGO workers could eventually be repatriated or allowed to return to their home countries.  

The PAOCC, in collaboration with other government agencies and local government units, remains confident in its ability to deport a significant number of POGO workers. Casio expressed optimism about achieving a high percentage of deportations, although he acknowledged the challenges inherent in law enforcement operations.  

A meeting at the Malaca?ang Palace was scheduled to discuss more effective ways to ensure the immediate deportation of POGO workers. The government is determined to exhaust all efforts to ensure compliance with the President's directive.  

On July 22, President Ferdinand Marcos Jr. ordered the Philippine Amusement and Gaming Corporation (PAGCOR) to cease POGO operations by the end of the year. Following this directive, the BI announced that all POGO workers have 59 days to leave the country once their companies are dissolved and their visas are downgraded.?

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Online sports betting group Meridianbet, operating in 18 jurisdictions worldwide, has announced that it is the new title sponsor of the Maltese FA Trophy, the country’s prestigious cup competition. As part of the Golden Matrix Group, Meridianbet’s sponsorship represents a significant step in the company’s mission to support the local football community in Malta.

The Maltese FA Cup competition, now known as the Meridianbet FA Trophy, will benefit from Meridianbet’s extensive expertise and community-focused approach, which is dedicated to promoting both amateur and professional football in Malta. The three-year deal solidifies Meridianbet’s longstanding commitment to nurturing sports culture in Malta, further strengthening its 17-year presence in the country.

Expressing his enthusiasm about the sponsorship deal, Stefan Pavlovic (pictured on the left), Director of Meridian Gaming Ltd (Meridianbet Malta), said that the company’s dedication to giving back to the community. He stated, “We are thrilled to partner with the Malta Football Association as the title sponsor of the Maltese FA Cup. With our 17-year presence in Malta, we have consistently strived to give back to the community. This sponsorship not only supports the growth of football at all levels but also reinforces our ongoing initiatives.”

Bjorn Vassallo (pictured on the right), President of the Malta FA, emphasised the commitment to promoting positive social change and fostering national pride through the partnership with Meridianbet. He highlighted the company’s deep-rooted presence in Malta as an ideal fit for inspiring people, achieving high standards, and embracing a sporting culture.

Beyond the football pitch, Meridianbet’s community engagement has been a central focus. In collaboration with the Responsible Gaming Foundation, the company launched the “Meridianbet Betting Awareness” initiative to promote safe gambling practises and support individuals affected by gambling addiction while ensuring the integrity of sports matches offered.

Additionally, Meridianbet has extended its support for environmental conservation by backing the Malta Ranger Unit and demonstrating its dedication to developing positive relationships within the local business ecosystem through participation in a corporate Padel tournament.

This collaboration marks an important milestone in the company’s commitment to championing sports excellence, supporting responsible gaming practises, and promoting environmental initiatives in Malta.

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The Bureau of Immigration (BI) in the Philippines apprehended a Chinese national, Wang Chuancong, wanted by Beijing authorities for trafficking Chinese nationals to work in online gaming establishments. According to BI, the arrest was executed on July 30 by the bureau’s Fugitive Search Unit (FSU) under Rendel Ryan Sy, at Wang’s condominium in Para?aque City. 

Wang was found to be an undocumented alien following the cancellation of his passport by the Chinese government. According to the bureau’s travel database, Wang had been residing in the Philippines since February, having arrived as a tourist. His undocumented status and continued presence in the country prompted immediate action from the BI. 

Wang is subject to a detention warrant issued by the municipal public security bureau in Jinjiang, China, in April 2024. He faces serious charges of human trafficking, a grave criminal offense under Chinese law. BI Commissioner Norman Tansingco confirmed the fugitive's identity and detailed the circumstances leading to his arrest. 

“We were told that he heads a syndicate that facilitates the illegal departure of Chinese nationals by forging documents to facilitate their outbound travel in China,” Tansingco said.  “This allows them to travel to different countries including the Philippines to work in online gaming hubs,” he added. 

Tansingco issued a mission order for Wang’s arrest following the request from the Chinese authorities. Upon arrest, Wang was taken to the bureau’s warden facility in Taguig City, where he awaits deportation proceedings. 

This arrest underscores the ongoing issues related to human trafficking within the online gaming industry in the Philippines. Wang’s syndicate is alleged to have forged documents to assist Chinese nationals in bypassing legal travel restrictions, thereby facilitating their illegal employment in the online gaming sector.

Last week, Philippine President Ferdinand Marcos Jr. announced a total ban on all Philippine Offshore Gaming Operators (POGOs) in the country. He mandated the Philippine Amusement and Gaming Corporation (PAGCOR) to wind down and cease operations of POGOs by the end of the year.

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