Indonesia has taken decisive steps to curb online gambling activities by targeting internet lines connected to the Philippines and Cambodia. This move, initiated by the nation’s Communications and Informatics Ministry, aims to sever access to networks allegedly facilitating illegal online gaming within Indonesia.

Under directives issued on June 21st, Indonesia’s NAP (Network Access Point) service providers have been instructed to block internet lines associated with online gambling, particularly those traced to locations in Davao, Philippines, and Cambodia. This strategic approach follows regional precedents where jurisdictions focus on disrupting infrastructure rather than targeting individual platforms directly.

Budi Arie Setiadi, Indonesia’s Communications and Informatics Minister, emphasized that these measures are part of a comprehensive strategy to eliminate online gambling from the country. The initiative includes the removal of nearly 3 million pieces of online gambling content from mid-2023 to mid-2024, demonstrating Indonesia’s commitment to enforcement.

Financial and Regulatory Impact

In addition to the NAP directive, Indonesia has sought cooperation from financial institutions to freeze approximately 5,800 bank accounts and block 555 e-wallets under Bank Indonesia’s authority. This multifaceted approach underscores the severity with which Indonesia views online gambling, with penalties for participants and organizers reaching up to 10 years in prison and fines up to $1,500.

Indonesia’s newly formed gambling task force, comprising personnel from the National Armed Forces and National Police Force, plays a pivotal role in monitoring suspicious financial activities linked to online gambling. Hadi Tjahjanto, Coordinating Minister for Political, Legal and Security Affairs, highlighted ongoing efforts to monitor and block access to overseas iGaming platforms, ensuring compliance with Indonesia’s strict anti-gambling laws.

Financial Transaction Oversight

The Financial Transaction Reports and Analysis Center of Indonesia continue to analyze surveillance data to identify and investigate potential online gambling transactions. Recent findings have flagged thousands of bank accounts suspected of involvement in iGaming activities, which are then forwarded to the Criminal Investigation Agency for further action.

As Indonesia intensifies its crackdown on online gambling networks, these concerted efforts underscore the government’s commitment to upholding national laws and safeguarding societal interests against the adverse impacts of illicit gambling. By targeting network access providers and bolstering financial oversight, Indonesia aims to mitigate the proliferation of online gambling activities across its borders.

Source:

Indonesia on Philippines and Cambodia to shut down online gambling via NAPs, agbrief.com, June 23, 2024.

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A cease-and-desist letter has been issued by the Michigan Gaming Control Board (MGCB) against Bovada, an offshore online gaming operator registered in Curaçao. The move comes after an investigation found that Bovada.com and Bovada.lv were both available to Michigan residents without proper licensing.

Executive Director Williams Warns Illegal Online Gaming Will Face Strict Enforcement

Executive Director of the MGCB Henry Williams said this was a significant step because regulators around the world have become increasingly concerned with online gaming platforms. He added:  

“This action serves as a stern warning to overseas companies that flouting local regulations will not be tolerated. The MGCB remains steadfast in its commitment to upholding Michigan’s laws and regulations and will continue to actively monitor and enforce compliance within the state to ensure a fair and secure gaming environment for all.”

Bovada is run by Harp Media BV and has been accused of violating several state statutes such as the Lawful Internet Gaming Act and Michigan Gaming Control and Revenue Act. These laws specify that only internet gambling establishments which are licensed by the state (including federally recognized tribal casinos) may provide such services within Michigan. Running an unlicensed betting operation in this state can lead to imprisonment for up to 10 years or fines amounting to $100,000.

Harp Media BV has 14 days from receipt of notice of the cease-and-desist order issued by MGCB to prevent access to its gambling offerings from any device located anywhere within the geographical boundaries of the state of Michigan. However, should it fail to do so then legal proceedings shall be initiated against them by the MGCB.

MGCB Stresses Consumer Safety in Crackdown on Unlicensed Online Gambling

The MGCB also emphasized the need for consumer protection. The regulator pointed out that unauthorized websites lack the necessary measures specified by Michigan’s rules to assist players in managing their gambling habits. According to the organization, such systems’ absence can pose a significant danger to people with gambling-related problems.

Despite this fact, MGCB cannot directly enforce its rules against a company like Harp Media B.V., which is based outside the country. However, previous experiences show that regulatory pressure may work in this case. 

Last year, Virtual Gaming Worlds stopped operating in Michigan after being warned by regulators about the same issue. 

It is unclear what Bovada will do next given these legal obstacles. The recent action taken by the MGCB is intended to make internet-based gambling more secure and fair, especially for residents within Michigan.

For their part, people living in Michigan should be careful when selecting where they gamble online. The Regulator advises them to only use platforms licensed by the MGCB, a list of which can be found on its website.

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The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to three entities engaged in unlicensed online gaming operations. 

MGCB Uncovers Illegal Online Gaming, Ensures Rapid Regulatory Response

Following thorough investigations, the MGCB discovered that these companies were offering online gaming services to Michigan residents without the required licenses. The regulatory action comes as part of the board’s ongoing efforts to enforce gaming laws and ensure the protection of Michigan citizens.

PredictionStrike Inc., identified as one of the US-based companies, was found to have breached regulations by providing internet gaming and sports betting services in Michigan without obtaining the necessary licenses. 

Meanwhile, Sweepstakes Limited was accused of promoting an unlicensed online lottery and raffle through its Stake.us platform, accessible to Michigan customers. 

VGW LuckyLand, Inc., an overseas entity, faced allegations of conducting illegal gambling by offering an internet game that involved monetary wagers for the chance to win valuable prizes.

MGCB Executive Director Henry Williams emphasized the importance of stringent gambling regulations, stating: “Gambling regulations are in place for a reason, and illegal gambling operations are not welcome in Michigan.” 

Williams further underscored the potential risks to citizens posed by unregulated sites, leaving them vulnerable without proper recourse and diverting funds away from taxed, legal establishments that contribute to community welfare.

MGCB Enforces Legal Action Against Violators of Gaming Laws

The MGCB’s actions are rooted in the violation of key Michigan gaming laws, including the Lawful Internet Gaming Act and the Lawful Sports Betting Act, which mandate that online gaming and sports betting can only be offered by licensed operators. 

Additionally, the Michigan Gaming Control and Revenue Act criminalizes gambling operations conducted without the MGCB’s approval, with penalties of imprisonment or fines.

In response to the cease-and-desist letters, the implicated companies have taken measures to restrict access to their platforms for Michigan residents. 

However, the MGCB encourages citizens with information on illegal gambling websites to report tips, fostering community engagement in maintaining regulatory integrity.

Additionally, various resources, including self-exclusion programs and responsible gaming databases, are available on the MGCB website and DontRegretTheBet.org to promote responsible gambling habits.

In other news, last week Michigan Gov. Gretchen Whitmer reappointed Joni M. Thrower Davis and Andrew T. Palms to MGCB, extending their terms until December 31, 2027. With Palms serving his 12th year and Davis entering her second four-year term, MGCB Executive Director Henry Williams commended their dedication and expertise, expressing confidence in the stability and effective decision-making of the board under their continued leadership.

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A comprehensive effort aimed at curbing illegal online gambling and lottery activities saw Malaysian authorities arrest 1,871 individuals. The operation, known as Special Op Dadu, spanned two weeks, with nationwide raids executed between 22 September and 5 October. The crackdown highlighted the government’s rising vigilance against illegal gambling as it tries to safeguard regulated operators.

Decisive Action Netted Impressive Success

Malaysia’s Special Op Dadu operation, coordinated by Shuhaily Zainthe, director of the Criminal Investigations Department at Bukit Aman headquarters, focused on eliminating illegal online gambling and lottery betting. During a press conference, Zain provided insight into the operation’s outcomes, detailing the significant progress made during these two weeks.

A total of 1,871 individuals were apprehended as part of the operation, comprising 1,599 men and 312 women. The arrested individuals ranged in age from 20 to 60 years old. Among those arrested, several were allegedly involved in public lotteries and purchasing lottery tickets. Authorities have already brought many perpetrators to court, and investigations are still ongoing.

As of 5 October, a total of 382 investigation papers involving online gambling and illegal lottery were solved and charged in court.

Shuhaily Zainthe, Bukit Aman headquarters criminal Investigations Department director

Throughout the operation, Malaysian authorities conducted numerous raids that culminated in the seizure of various assets used for illegal gambling activities. The items confiscated included cash, computer equipment, and mobile phones. The total estimated value of the seized assets amounted to RM 13,000 (approximately $2750) for online gambling and RM 680,000 ($143,808) for illegal lottery activities.

A Safe and Regulated Market Has Significant Benefits

Although 1,362 additional cases related to these activities remain open, 43 investigation papers resulted in “no further action.” The operation nevertheless marks a significant milestone in the Malaysian government’s efforts to curb illegal gambling in the country, which has become an endemic issue. While 2022 had multiple minor arrests, Special Op Dadu’s scale sets a new precedent.

This crackdown should have significant implications for Malaysia’s gambling sector, giving licensed operators increased confidence to conduct business. The region has enjoyed a quick post-COVID recovery, focusing on attracting foreign tourists with high-profile integrated resorts like Genting Malaysia. While black market gambling primarily affects locals, effective regulation enforcement remains paramount for investor confidence.

Special Op Dadu likely represents the first significant step in a broader plan to remedy Malaysia’s gambling sector. Cooperation with law enforcement remains paramount in upholding the law and protecting citizens from illicit gambling operations. While the country’s illegal market remains deeply entrenched, ongoing efforts have demonstrated that progress is possible.

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The authority’s recent actions came in response to a licensed operator offering clients cashback bonuses. Dutch law prohibits such practices, forcing the offending entity to terminate the promotion. However, the incident raised significant concern that other gambling companies may also be violating the ban, prompting an in-depth investigation by the KSA.

Violations May Be More Common than Expected

November 2022 saw the KSA issue a clear directive to all licensed online gambling providers, mandating the cessation of offering bonuses in the form of cashback. According to Dutch law, these bonuses are classified as advertising and are strictly prohibited. The primary rationale behind this ban is to prevent problem gambling and promote responsible gaming practices.

A recent incident involving a licensed entity offering cashback bonuses led to a broader investigation by the KSA. This market-wide examination aims to identify any other permit holders who may violate the ban. According to the regulator, offenders who do not immediately cease the practice risk enforcement action for endangering the public.

(Cashback bonuses) contribute to taking more risks and lowering the threshold for gambling, for example, by playing with higher stakes or playing more often.

Kansspelautoriteit statement

The KSA is determined to ensure that all operators adhere to the established rules, promoting a fair and responsible gaming environment. Kansspelautoriteit’s ongoing vigilance and proactive approach help the authority promptly identify and rectify regulatory breaches. This commitment extends to all aspects of online gambling, prompting the recent harsh response.

Regulatory Vigilance Remains Paramount for a Healthy Market

A robust regulatory environment remains vital to the Netherlands’ status as one of Europe’s safest gambling markets. Earlier this month, the KSA warned several gambling operators for violating the country’s recent restrictions on untargeted gambling advertisements. The affected promotional material ceased to appear following regulatory intervention, resolving the issue without the need for fines.

While scrutiny remains vital to a healthy gambling ecosystem, it also poses some drawbacks. Betsson Group recently withdrew its application for a Netherlands license as the process proved too lengthy and costly. Despite such cases, consumer safety must remain a priority for any regulator, creating a safe ecosystem where players can enjoy online gaming responsibly and without pressure.

The ban on cashback bonuses is just one aspect of KSA’s mission to keep operators in check. The regulator’s enforcement efforts underscore the importance of maintaining high industry standards that apply equally to all industry stakeholders. Such initiatives help the Netherlands remain a thriving and sustainable online gambling market that benefits operators and players.

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Liquor & Gaming NSW (L&GNSW) maintains its steadfast commitment to curbing illegal gambling advertising, dishing out fines exceeding $1.1 million to online bookmakers since 2016. The regulator’s actions highlight its ceaseless vigilance and commitment to protecting player interests. L&GNSW’s constant updates allow it to stay ahead of industry innovations and curb problem practices.

Violators Face Harsh Punishments

L&GNSW has adopted a rigorous stance against unlawful gambling promotions, issuing hefty fines to deter violators and uphold the industry’s integrity. The companies facing prosecution in court have collectively faced fines surpassing $830,000. Additionally, L&GNSW has leveraged its authority to impose penalty infringement notices amounting to $270,000.

The regulator’s zero-tolerance approach is paying significant dividends, making New South Wales one of Australia’s leading gambling jurisdictions. Jane Lin, L&GNSW Executive Director Regulatory Operations, noted that sufficient information and regular collaboration with operators meant they had no excuse for violating advertising rules. 

We will continue to monitor television, print, and social media for this illegal advertising and advocate for the courts to issue higher penalties.

Jane Lin, L&GNSW Executive Director Regulatory Operations

According to current NSW laws, courts can impose penalties of up to $110,000, while penalty notices carry a $15,000 fine. Regulations strictly prohibit advertisements that induce people to participate in gambling, severely limiting operators’ marketing options. Despite these restrictions, the region’s gambling market remains healthy and competitive, highlighting the regulator’s success.

The Regulator Remains One Step Ahead

L&GNSW has demonstrated a willingness to pursue even high-profile operators. April saw the regulator fine Miami-based micro-betting operator Betr AUD210,000 ($142,365) for breaching advertising laws in a controversial promotion. Consistent enforcement actions and significant fines mean companies are always held accountable, protecting consumers from deceptive or harmful advertising practices.

Regular reforms mean the NSW regulator remains in touch with the latest developments in the gambling industry, enabling it to adapt to emerging challenges. The authority has set its sights on introducing Cashless Gaming in the region. This measure will transform the NSW market, curbing problem gambling and holding operators closely accountable for any regulatory failings.

The evolving regulatory landscape and diversifying gambling practices make maintaining a robust and proactive enforcement approach paramount. L&GNSW’s dedication to eradicating illegal gambling advertising testifies to its critical role in fostering a responsible and transparent gambling environment. Through these efforts, L&GNSW aims to create a safer and more enjoyable gambling experience for all participants.

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In addition to the operators, the regulator banned five customers from all state casinos for leaving their children unattended while gambling. With the state’s gambling industry maintaining steady growth, such minor offenses are within expectations. The fines will ensure casinos continue operating within the law and provide their patrons with a secure and transparent gaming experience.

The Observed Breaches Were Relatively Minor

As part of its oversight role, the PGCB conducts regular inspections and investigations to monitor compliance with licensing requirements and gaming regulations. During the most recent series of checks, the regulator identified two establishments that violated safe gambling policies. The PGCB issued fines, sending a message to other operators to maintain the integrity of the gaming industry.

Hollywood Casino operator Mountainview Thoroughbred Racing Association faced a penalty of $78,000 due to inadequate minimum security staffing. Live gaming solutions and services TCS John Huxley meanwhile received a $22,350 fine for licensing failings. Each fine is commensurate with the severity of the violation and serves as a deterrent against future non-compliance.

Both companies have agreed to the fines after negotiations, thanks to PGCB’s collaborative approach. Five individuals also drew the regulator’s ire for leaving children unattended in vehicles to gamble. The PGCB placed the offending adults on the Involuntary Exclusion List, preventing them from entering all casinos in the state.

Pennsylvania Still Faces Regulatory Challenges

The PGCB’s decision to pursue even these relatively minor offenses demonstrates its commitment to upholding the integrity of Pennsylvania’s gaming industry. With revenues up across the board, April saw state operators contribute $195.7 million in taxes. These funds are vital in funding various gambling harm prevention initiatives and supporting disadvantaged communities.

Despite relatively good compliance among gambling operators, Pennsylvania continues to struggle to regulate the problematic proliferation of skill video games. New proposed legislation promises to impose much-needed rules and introduce taxation that can contribute roughly $300 million to the state’s coffers. The move hopes to tackle illegal gambling while preserving the additional revenue vital to small businesses.

Overall, Pennsylvania’s regulatory landscape appears relatively calm, with most operators remaining compliant with the state’s regulations. Once skill games also fall under the PGCB’s jurisdiction, the regulator will have complete oversight over all forms of gaming in the state and the ability to guarantee adequate consumer protections.

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In December, the EC updated its rules regarding high-risk third countries. The nations included in the ignoble list face systemic anti-money laundering (AML) or countering the financing of terrorism (CFT) failings. The recent inclusion of Gibraltar deserves special mention, as the territory is one of the largest online gambling hubs. Tightening regulations may significantly hamper the day-to-day operations of operators stationed there, forcing them to search for alternatives.

An EC Listing Is Bad News for Everyone Involved

The EC is one of the founding members of the Financial Action Task Force (FATF). The international organization focuses on preserving the financial system’s integrity by combating money laundering, the financing of terrorism, and other such threats. As such, the Commission’s list of high-risk third countries carries significant negative implications for all nations unfortunate enough to be included.

A recent warning by the EU may significantly impact businesses involved with such countries. Regulators now face increased pressure to ensure due diligence and will likely crack down on all related parties. Such updated rules may significantly impact many gambling operators, especially those operating out of Gibraltar. The accompanying loss of face can also have severe long-term consequences.

Gibraltar-Licensed Operators Will Face Rising Difficulties

The FATF greylisted the territory in June 2021, followed by an EC listing as a high-risk third country. The implications of such measures for a thriving financial hub like Gibraltar are not pleasant, as all transactions in and out of the country will face increased scrutiny and potential delays. 

The gambling industry, in particular, will bear the brunt of the impact. As of May 2022, the territory hosts 45 licensed online gaming operators employing over 2000 people. The EU demanded enhanced due diligence measures from all businesses and individuals involved with listed nations. 

Such measures aim to combat money laundering and terrorist financing, maintaining the financial system’s integrity. Despite the EC’s attempts to cooperate with local governments and address the issues behind the listing, implementing an action plan can sometimes take years. Meanwhile, bureaucratic pressures can drive current licensees away and dissuade operators from considering a Gibraltar registration.

The Government Aims to Preserve Gibraltar’s Reputation

The EC listing is a significant black mark in Gibraltar’s ongoing efforts to prove its regime robust and effective. Andrew Lyman, the territory’s chief commissioner for gambling, denied any AML/CTF deficiencies, insisting that the local regulator was doing an adequate job. However, the EC did not share the sentiment, leading to this unfavorable situation.

A FATF greylisting can significantly hamper a nation’s international prospects, disincentivizing foreign investments. Despite ongoing uncertainty, Gibraltar’s economic attractiveness and favorable licensing conditions helped it secure several new high-profile licenses. However, the subsequent EC listing may significantly degrade the country’s reputation, meaning the government is hard-pressed to address its ongoing issues.

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Last October, a criminal gang from Hong Kong was arrested after it was discovered that it had collected HK$40 million ($510,000) using an illegal gambling platform run by the members of the organization. 

Now, further proving its ongoing efforts to crack down on the triads that are usually connected to illegal gambling, sex and drug trafficking, the authorities in the special administrative region have announced the results of another impressive operation with code name Levington. 

Hong Kong Police Sparing No Effort to Block Triads’ Income Sources 

The police forces’ investigation around the city was intended to disrupt the sale of drugs, as well as brothel and gambling activities controlled by gangs and triads. The authorities’ efforts were also aimed at stopping illegal debt collection along with illegal money lending. The operation, which was led by the Organised Crime and Triad Bureau, resulted in the successful confiscation of illegal cigarettes and drugs along with weapons, cards, and gambling chips. 

This was possible after police forces forcefully shut down 15 different gambling dens and two brothels and busted a storage center in Tin Shui Wai that was hiding contraband cigarettes.

The same authorities that announced they would adopt a zero-tolerance policy for the illegal activities of triads arrested a total of 234 suspects. 

The bust covered dozens of suspected members belonging to a number of triad factions such as Sun Yee On and 14K triads. The list included 206 Hong Kong residents and 12 people with origins in mainland China. The other 16 individuals who were busted used temporary identification documents which allowed them to stay in Hong Kong without having a job there. 

The 137 men and 97 women were busted on suspicion of wounding, money laundering, criminal intimidation and damage, possession of offensive weapons, drug trafficking, processing illegal cigarettes, illegal gambling activities, and operating vice or gambling venues. 

The Police Confiscated HK$2M in Gambling Chips 

Besides the HK$220,000 (US$28,039) worth of illegal narcotics that were confiscated as a result of the special operation, the authorities also got their hands on HK$5.9 million ($752,000) from illicit cigarettes and HK$2 million ($255,000) from confiscated gambling chips. The Hong Kong Police Force also managed to successfully seize HK$1.93 million ($246,000) worth of cash, two vehicles, and illegal weapons.

In 2022, the police authorities were handed 2,554 reports regarding crimes related to triads in Hong Kong, a number that was 35.3% higher compared to the previous year’s figure. In September 2022, three police officers in Hong Kong faked a raid in order to protect an unlicensed casino. After their actions were discovered and reported to the police by an undercover officer, the trio was arrested and sentenced to a few months in prison.

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