The International Federation of Horseracing Authorities (IFHA) has recently released a report that underscores the significance of combating illegal gambling on a global scale, with a particular emphasis on the Isle of Man and the Philippines. The report urges international collaboration to address this transnational crime issue.
The International Federation of Horseracing Authorities (IFHA) has focused on the ongoing issue of illicit gambling on a global scale in its most recent quarterly update. The November 2024 announcement offers a comprehensive overview of the ongoing efforts to combat illicit betting and its associated crimes, emphasizing that this issue has evolved into a transnational challenge that necessitates global collaboration.
Several experts in the disciplines of financial crime and racing integrity have authored the report, which emphasizes the evolution of regional committees into a global entity. It comprises case studies from a variety of regions that have been significantly affected by illicit gambling, thereby illustrating the extensive social consequences of these activities. The transformation of the Asian Racing Federation’s Anti-Illegal Betting Committee into a global entity under the IFHA is a significant development. This modification not only underscores the importance of a global strategy to combat illicit betting but also indicates a pressing need for a unified international strategy.
The committee has been a prominent think tank on illegal betting and associated financial crimes since its inception in 2017. The IFHA committee intends to establish a close partnership with international stakeholders, including the United Nations Office on Drugs and Crime (UNODC), the World Lottery Association, and INTERPOL, in order to confront the escalating obstacles it encounters following its transformation into a global entity. Offshore betting operations and unlicensed gambling platforms are the primary factors contributing to these challenges. They frequently operate in environments that lack proper supervision, exploiting regulatory loopholes across jurisdictions, resulting in substantial social and legal repercussions.
The IFHA has given particular attention to the situation in the Philippines. The report investigates the Philippine government’s recent decision to prohibit Philippine Offshore Gaming Operators (POGOs). Despite the fact that POGOs have been operating within a regulatory framework since the early 2000s, their activities have become a hub for criminal activities, including human trafficking, online frauds, and money laundering. The report indicates that investigations conducted in 2023 and 2024 have revealed extensive criminal networks that are associated with POGOs. Many operators are still rebranding themselves as legitimate businesses or relocating to jurisdictions with lax regulations, such as Timor-Leste and Pacific island nations, despite the ban coming into effect. The global dissemination of illicit gambling patterns and their associated crimes has been a source of concern as a result of the migration of these operations.
Additionally, the report addresses the economic consequences of the ban, which include potential employment losses and reduced government revenue. Nevertheless, it contends that the broader social and legal costs associated with permitting such operations to persist unabated outweigh these economic losses. The Isle of Man’s situation is similarly noteworthy, as it serves as an illustration of the global reach of unlawful gambling operations. The Isle of Man authorities suspended the licenses of King Gaming Ltd and Dalmine Ltd in 2024 after conducting an investigation into their involvement in illicit betting and related fraud.
The announcement provides a detailed explanation of how these operations employ strategies such as the “pig slaughter” swindle to entice individuals into fraudulent schemes. The report also underscores the importance of connections to large criminal organizations that operate in Southeast Asia, particularly in the Philippines. The efficacy of local regulations governing offshore gambling remains an unresolved issue, despite the fact that Isle of Man authorities have denied these claims.
The United Nations Office on Drugs and Crime has estimated that the global value of illicit betting is approximately $1.7 trillion. This activity is frequently associated with other criminal activities, including money laundering, human trafficking, and corruption. The significance of the announcement is that it underscores the borderless nature of online wagering, which enables criminal networks to operate across jurisdictions by exploiting technological advancements and regulatory loopholes.
Addressing this issue necessitates initiatives such as INTERPOL’s SOGA X operation. Actions to dismantle illegal wagering websites and rescue victims of human trafficking have underscored the profound impact of such initiatives, resulting in the arrest of over 5,100 individuals and the recovery of $59 million in illegal proceeds.
Frank Schungral is a seasoned professional with more than two decades of experience in the online wagering industry, having worked in both Europe and Asia. He has adeptly navigated both the Isle of Man and the Philippines, having begun his career as a sports trader, before establishing and administering a comprehensive business. He has most recently concentrated on regulation and licensing in the legal and cryptocurrency gambling sectors. Schungral has made substantial contributions to the advancement of industry standards and the promotion of sustainability throughout his career.
