A coordinated operation by law enforcement forces across Italy executed a court order for confiscating assets worth approximately €400 million ($433 million) belonging to an iGaming operator registered in Malta. This action follows Italy’s intensifying efforts to counter organized crime infiltration in the online gaming and betting sectors, curbing corruption and money laundering operations.

The Organization’s Reach Extended Across Europe

An international investigation revealed the offending operator’s ties to a sophisticated criminal system engaged in running black market online gambling operations. The organization’s headquarters was in Italy’s Reggio Calabria region, but it projected its influence abroad through companies with offices in Malta, Romania, Austria, and Spain. Such illegal operators can be very damaging, offering virtually zero customer protection or responsible gambling safeguards.

The operator used a so-called “cascade” system, enabled through contacts with criminal organizations. These elements provided protection and helped popularize the brand online, while local businesses facilitated the illicit collection of proceeds, with a share going to the criminal entities. This arrangement was used to launder significant sums and would have continued expanding.

The group avoided detection by transferring most proceeds from illegal activities abroad, evading Italian tax authorities. The unnamed kingpin at the center of the investigation held a prominent position in the Malta-based company. However, the operator primarily targeted the Italian market via multiple outlets dedicated to betting and games of chance, obscuring its involvement.

Gambling Companies Remain Susceptible to Criminal Influence

Authorities learned of this organization after an investigation into links between businesses and organized crime revealed that the crime boss at the center of the operation held assets that did not align with his declared income. This discrepancy allowed the court to issue a seizure warrant on the suspect’s assets, followed by a second order to seize all assets linked to three connected iGaming companies.

The estimated total value of the seized assets is roughly €400 million. The court also decreed special surveillance of the suspect for two and a half years, ordering him not to leave his municipality. This development highlights a milestone success for Italy’s financial police and Public Prosecutor’s office as the offending operators will no longer threaten the safety of Europeans.

The online gaming and betting sector, often susceptible to criminal infiltration and money laundering, continues to face scrutiny as law enforcement works diligently to curb corruption. Italian authorities have substantial experience uncovering gambling-related crime, but the extensive reach of such illegal networks makes lasting progress difficult. Hopefully, the investigation will provide sufficient evidence to target other such enterprises before they can do much harm.

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Macau’s gaming industry reported a significant year-on-year gross gaming revenue increase in November. The special administrative region’s gambling sector was impacted negatively by the COVID-19 pandemic but seems on a steady path to recovery.

According to the report, the local gambling operators recorded GGR of almost $2 billion last month, marking a stellar 435% year-on-year increase. While this figure is still behind October 2023’s result, the November results demonstrate that the region is rebounding.

Experts also pointed out that November’s results being lower than those recorded in October was an expected outcome considering the National Day Golden Week holiday, which provided a significant boost to the industry last month. For reference, in October, Macau’s gambling operators reported GGR north of $2.4 billion.

Year-to-date GGR comes at roughly $20 billion, demonstrating a stellar 325% year-on-year increase. With this pace, the industry might be on track to hitting its $27 billion target in 2024.

Crime in Macau Is on the Rise

Unfortunately, the industry’s recovery was also accompanied by an increase in gambling-related crime. Macau’s Secretary for Security, Wong Sio Chak, just commented on the matter, revealing that local authorities have identified 716 gaming-related crimes this year.

The Secretary pointed out that cases of gambling-related fraud and thievery have skyrocketed. For reference, the police recorded 155 cases of fraud which represents an unfortunate 139% year-on-year increase. At the same time, casino thefts increased by a whopping 486% year-on-year (129 cases).

While this criminal activity corresponds to a year-on-year increase of 176%, it should be noted that the number of gambling-related cases was still 55.2% behind what the authorities recorded during the same period in 2019.

Money exchange fraud, which often happens around the region’s casinos, also represented a significant problem for the local authorities. Unfortunately, Macau would need to introduce new laws in order to combat money exchange gangs and put a stop to their activities.

Wong Sio Chak noted that the Judiciary Police has proposed a criminalization of illegal money exchange activities, hoping to increase the punishment for such criminal activities.

Speaking of gambling-related crime, a recent report claimed that the region’s Prosecutor’s Office reportedly wants charges against Alvin Chau and Suncity for fraud to be reinstated. For reference, Chau was recently sentenced to 18 years in prison but the Court of Second Instance ruled that his team no longer has to pay up.

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A Spanish police officer has been sentenced for embezzling money to gamble. The man will now serve a five-month suspended prison sentence and a 10-month disqualification period.

The incident happened in 2020 when the man and his team cracked down on an illegal drug operation. At the scene, the officer and his colleagues seized bags of marijuana and almost $10,000 in cash.

Instead of safeguarding the cash found at the scene, the officer decided to appropriate it when his colleagues were not looking. Eight hours later, the man proceeded to treat himself at a local casino with the money he embezzled. To make matters worse, the police officer hit a streak of losses, eventually returning home with none of the cash he had hoped to earn. 

The police later asked the man to return the seized items. After he handed only the drugs, his suspicious colleagues reported the incident, leading to an investigation into the matter. In the end, the police officer’s crime came to light.

The man was able to return the money, which, luckily for him, was a major mitigating factor, leading to a much lighter sentence. As a result, he was only handed a suspended sentence. However, the prosecution can still try to appeal the decision.

More Recent Criminal Activities in the Gambling Sector

In other news, Binance Holdings, the world’s largest crypto exchange, admitted to violating anti-money laundering regulations in the United States. The company intentionally focused on profits, neglecting its AML responsibilities. As a result of its guilty plea, Binance will have to pay $4 billion to resolve the investigation.

Changpeng Zhao, the company’s founder and chief executive officer, resigned from his position as a result of the case. 

Elsewhere, a fatal shooting occurred at Osage Casino & Hotel in the United States where an alleged car and credit card thief tried to escape from the police. According to reports from local news outlets, the man was fatally shot by a bystander while he was trying to escape with a car and dragging a police officer who had been trying to stop him across the pavement.

The identities of the deceased person and the shooter are yet to be revealed as of the time of this writing.

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However, a year after the opening of WarHorse Lincoln, the first state-licensed casino in Nebraska, these fears have proven unfounded.

Lincoln Casino Surprises with Minimal Police Calls Despite Concerns

Despite vocal concerns from notable figures like former Gov. Pete Ricketts, billionaire Warren Buffet, and former Husker football coach Tom Osborne, casino gambling in Lincoln has not led to the anticipated increase in criminal activities, reported The Lincoln Journal Star. Law enforcement data reveals that the Lincoln Police Department responded to the casino only 78 times in the past year. These calls were primarily related to minor disturbances and trespassing incidents, resulting in infrequent citations.

Lincoln Police Captain Don Scheinost, who leads LPD’s Southwest Team, expressed his surprise at the low number of incidents. He credited the casino’s cooperative staff and management for maintaining a secure environment. 

Comparatively, other public places like hospitals and grocery stores in the city have generated more calls to the police. For instance, Bryan West Campus, a local hospital, experienced 1,425 police calls, while the Walmart near Lincoln’s southeastern edge had 326 calls during the same period.

Scheinost emphasized that crimes such as car thefts and vehicle break-ins, which are largely preventable, pose more significant challenges to law enforcement. He added that concerns about casino-related crime are not prominent among Lincoln residents, noting that he has rarely been questioned about the casino’s impact on the community.

Nebraska Racing and Gaming Commission Proactively Addresses Gambling Issues

The Nebraska Racing and Gaming Commission, responsible for overseeing the state’s casinos, has proactively addressed potential issues related to gambling establishments. In an effort to prevent human trafficking, a problem sometimes associated with casinos, the commission has mandated staff training and the display of human trafficking awareness posters and hotlines in casino bathrooms.

Casey Ricketts, the director of compliance at the commission, acknowledged the possibility of future challenges but expressed confidence in their preparedness. She stated that they were trying to take a very proactive approach, emphasizing the need for collaboration among casinos, problem gaming advocates, law enforcement, and trafficking experts.

Last year Nebraska Gov. Pete Ricketts approved rules allowing casino gambling in the state, with applications that opened in June 2023. The delay was due to the Nebraska Racing and Gaming Commission finalizing the licensing fees. 

In October 2022, Nebraska also made progress toward legalizing sports betting in the state, with rules approved by the Nebraska Racing and Gaming Commission. While the exact launch date remains uncertain, sports betting will be limited to in-person bets at horse racetrack casinos. In a 2020 ballot, 65% of voters supported casino gambling to keep revenue within the state, potentially boosting Nebraska’s treasury by $60 million to $120 million annually.

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Illegal gambling operators across the globe disrupt the operations of the legal sector, avoid paying taxes and in some cases are even related to groups tied to criminal activities. As such, governments and gambling regulators constantly monitor the online and retail sectors, fighting against illegal gambling. Japan, a country that seeks to reduce the number of illegal gambling operators and prevent other crimes, recently announced it will increase the rewards for anonymous crime reporting.

Earlier this week, the National Police Agency (NPA) in Japan, confirmed that it will increase the reward that anonymous crime tippers can receive. The current reward for anonymous reporting of crimes is set at 100,000 yen ($680). This sum is expected to change, starting from October 1, 2023, skyrocketing to the staggering 1 million yen ($6,800).

The reward would be applicable to people who report crimes and result in the discontinuation of illegal organizations. Crimes that can be reported via phone or online include illegal gambling, drugs, human trafficking, as well as prostitution, among others. Ultimately, the NPA anticipates detaining culprits involved in the so-called “dark jobs,” that involve different crimes, including robberies, thefts and even child prostitution. In addition to individuals, the law enforcement authorities will fight against mobile crime groups. Such groups are often gathered through social media and are involved in a variety of criminal activities.

Crime Tips Can be Submitted via Phone and Online

The tips can be submitted via an online platform in any language or by phone. People who want to receive more information or would like to submit a crime tip can call a toll-free service number in Japanese. A private organization will be responsible for the collection of the information which will then be reported to the NPA.

The increased reward for reporting crime tips comes after more than 27,000 tips were filed for the fiscal year 2022. The reported crime tips led to arrests in 45 different cases. Overall, some 530,000 yen ($3,600) was paid to informants for 11 different cases. A majority of the reported cases were related to drugs, among other crimes.

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The Italian mafia is infamous around the whole world. Rival mafia families controlling different territories have started feuds with each other and even in some cases with local authorities and this has been an issue for the country for more than 200 years. Despite the fierce control and complex structure of those illegal organizations, Italian police have been relentless and this process is unlikely to stop anytime soon.

Earlier this year, Matteo Messina Denaro, one of Italy’s most-wanted mafia bosses from the notorious Cosa Nostra crime syndicate, was arrested. The man was captured by police authorities in Sicily in mid-January after being on the run for 30 years. Denaro was convicted of multiple murders, kidnappings and other crimes. It is believed that he was also involved in money laundering, drug trafficking and other illegal activities.

While Denaro was on the run for quite a long time, he was eventually caught. Similarly, another mob leader was caught by police authorities Thursday. Pasquale Bonavota, from the infamous ‘Ndrangheta crime family, known for its affiliation to illegal gambling and drug trade around the world, was arrested by police authorities.

The Mafia Boss Was Arrested in a Church

Carabinieri, Italy’s national gendarmerie, uncovered that Bonavota was hiding in the northern city of Genoa. Local news outlets reported that the alleged mafia boss tried to trick the police by giving them fake ID. However, the Carabinieri were not convinced and ultimately arrested him.

What’s interesting is where the police caught the crime boss. Out of all the places he could hide, Bonavota picked a church. Not unexpectedly, the alleged mafia boss did not seek forgiveness but was rather hiding from the authorities. In addition to capturing him, the Carabinieri arrested his brother Nicola, who was also on their radar.

The infamous ‘Ndrangheta crime syndicate reportedly operates in more than 40 different countries around the world. The criminal organization is involved in many illicit activities, from theft and drugs to money laundering and illegal gambling, among other crimes.

Allegations against Bonavota claim he murdered two people. This first murder dates back to 2004 when he reportedly took the life of another ‘Ndrangheta member. The second one ties Bonavota to the murder of a leader of another criminal syndicate from 2014. Although he was sentenced for the murders at a later point the sentence was invalidated. Still, Bonavota remained on the police radar for other crimes.

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The small Mediterranean island nation has long profited from its status as one of the world’s leading iGaming hubs but faces constant struggles with crime and corruption. In 2021, Malta was put on FATF’s greylist for systemic regulatory and enforcement failings, but a series of reforms managed to sway the financial watchdog. However, recent news indicates that the country’s woes are far from over.

Illegal Gambling Rings Launder Millions Each Year

A recent investigation connected to the 2017 murder of journalist Daphne Caruana Galizia uncovered an underground lottery ring that ostensibly accounted for an astonishing 30% of the total market share. The government managed to obtain the information thanks to the arrest of local criminal leader Melvin Theuma who shared extensive details about his organization in exchange for a presidential pardon.

Theuma’s input was instrumental in untangling the details behind the illegal lotto operation and its ties to the island’s construction and property markets. These businesses still operate primarily with cash, making them the perfect avenues to launder yearly lottery profits of up to €30 million. Despite the authorities’ efforts, the underground network allegedly maintains its presence across the island.

According to a detailed report by local news outlet MaltaToday, the parallel lotto operates parallel to the official national operator, using the same winning numbers. The underground organization offers tickets and substantial prizes, undercutting the legitimate lottery and using the accumulating gambling debts to undermine local communities.

Such Scandals Threaten Further International Sanctions

The rising controversy again draws attention to the Maltese authorities’ ability to enforce the law and crack down on organized crime. Despite Theuma’s cooperation, the underground lottery is ostensibly still alive and well. Perhaps the matter is not a priority compared to the country’s more pressing problems, but such public failings threaten to undermine what little goodwill the government has left.

2021’s FATF listing created a bureaucratic nightmare for companies dealing with financial services, banking, or gaming. The increased regulatory pressure disproportionately impacted smaller businesses and could have severely impacted the local economy if the government had not acted with alacrity. While updated laws and regulations are promising, the thriving underground lottery proves that enforcement is still sorely lacking.

Despite removing Malta from the greylist, the FATF maintains a watchful eye on the island nation. A return to past behaviors, lack of progress, or new regulatory failings can lead the country back into international trouble. The authorities and the public must work toward improvement across all levels of society to restore Malta’s damaged reputation and capitalize on its unique advantages.

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