USIP report: Gambling scams in Southeast Asia, a growing threat to global security 

Earlier this week, the Brazilian Senate’s Constitution and Justice Committee (CCJ) approved a bill that legalises casinos, bingo halls, and the traditional "jogo do bicho." The bill, PL 2234/2022, passed narrowly with 14 votes in favour and 12 against. President Luiz Inácio Lula da Silva stated on Friday that he would sanction the bill if it is approved by the Senate.

Speaking during a radio interview, Lula emphasised that while he is not personally in favour of gambling, he does not see it as a crime. "If Congress approves it and there is an agreement among political parties, there's no reason not to sanction it," he said.

The , which has already passed the House, now awaits a full Senate vote. If approved without amendments, it will move to President Lula’s desk for final sanction. Lula also addressed concerns regarding the socioeconomic impacts of gambling, noting that while the legalization might create jobs, it is unlikely to be a panacea for Brazil's economic challenges. He expressed skepticism about claims that the move would generate 2 million jobs, arguing that while casinos might provide employment for poorer individuals, these individuals are unlikely to be patrons. Additionally, Lula highlighted the rise of online sports betting and its potential impact on young people, underlining the need for careful regulation.

PL 2234 (2022), aims to regulate gambling and betting in Brazil, amending and revoking outdated laws. The bill is structured into ten titles, covering general provisions, the establishment of the National System of Games and Bets (Sinaj), licensing requirements, and measures to prevent money laundering and terrorism financing. It seeks to bring an already existing, often illegal, economic activity under state control, reducing ties to organized crime. The bill includes the creation of a national register of prohibited individuals (RENAPRO) and imposes a 20% tax on prizes above R$10,000 (just over €1,700). The committee's analysis confirms the bill's constitutionality and economic importance, proposing amendments to enhance the text. The regulation is expected to formalize the gambling sector, ensuring state oversight and addressing issues like gambling addiction and financial crimes.

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As iGaming offerings expand, mobile self-exclusion software is gaining popularity.

In recent years, tools like , Gamban, or Gamblock have innovated ways for problem gamblers to opt out of gambling. BetBlocker, a market leader, recently secured two partnerships: one with a cryptocurrency casino and another with an AI-driven analytics provider.

BetBlocker, a non-profit, free-to-use software, helps bettors seeking self-exclusion and is entirely funded through charitable donations. Recent partnerships aim to expand the software's reach through funding and additional resources.

As a digital tool, BetBlocker is more versatile than traditional self-exclusion programmes. Users can not only self-exclude for periods ranging from days to years, but also limit access to betting platforms during recurring specific vulnerable times, such as evening or week-ends. The app includes parental control options. It can also target gambling advertisements.

In the USA, a programme will soon enable , adapting traditional methods to modern and often digitised gambling, acknowledging the necessity for programmes that transcend geographical boundaries. The strength of self-exclusion software lies in its ability to target operators worldwide.

BetBlocker cannot be uninstalled like other apps. It states: "Gambling addiction often involves an inability to control wagering impulses. Therefore, the tool would fail if disabled during a Gambling Self-Restriction. Once activated, a Gambling Self-Restriction cannot be lifted. We ensure BetBlocker is as difficult as possible to remove during a Gambling Self-Restriction. Our User Support Team will not assist in removing it while restrictions are active."

Some users have reported in online reviews that the app doesn't function properly on their phones, despite its claimed coverage of over 83,000 gambling websites. Besides technical issues, a reason cited for occasional malfunctions is that some casinos try to bypass blocking apps by slightly altering their URLs when they detect a user might be using such software.

BetBlocker relies partly on users to report gambling sites not yet blocked by the app in order to broaden its reach. Securing additional funding through partnerships is also crucial for the charity.

Looking ahead, the gaming industry will shift its focus to Eastern Europe this September with the SiGMA By Soft2Bet in Budapest.

The German gambling regulator, GGL, as Euro 24 began, to remind operators that it would be particularly active during the sport event and would monitor closely all activities to ensure compliance with player protection regulations.

“Illegal gambling is not only punishable, but it also carries a significant risk for the development of gambling. Those interested in gaming should use the detailed information offered by the GGL and other bodies,” the regulator said.

To assist bettors, GGL reminded them they can consult the officialof licensed gambling operators.

It also reminded players about the self-exclusion programme, called OASIS, that allows problem gamblers to voluntarily opt out of gambling activities.

The sports betting trade association Deutscher Sportwettenverband (DSWV) has welcomed this warning and voiced their own concerns about the black market. Moreover, it has requested a comprehensive review to take place after Euro 2024.

According to their estimates, the black market could still account for 50 percent of the betting volume in Germany. If these numbers are correct, Germany would be one of the European countries with regulated sports betting that is most severely affected by illegal gambling.

DSWV President Mathias Dahms said, “The European Football Championship not only promises to be a sporting highlight but is also the most important event of the year for the sports betting industry. We are expecting exciting matches and emotional moments and, of course, we are all rooting for the German national team.” And according to them, the Euro 24 could be an opportunity to regain many former customers who have migrated to the black market.

In January 2024, the GGL had a disagreement with the Ministry of Justice over strategies to address unlicensed gambling. The Ministry of Justice, in an effort to modernise the criminal code, had proposed changing the criminal status of illegal gambling to make it an administrative offence.

The GGL, whose core mission is to combat these practices and their effects on the population, judged this proposition “incomprehensible.” Legal system officials, the Drug and Addiction Commissioner from the Ministry of Health, and the GGL have all opposed the decriminalisation of illegal gambling.

According to the GGL, this legal change would significantly undermine the protection of minors, addicts, and Germany's efforts against money laundering. Conversely, it has requested more power and tools to combat black market operators. One of their demands is the ability to prosecute gambling providers based overseas.

Looking ahead, the gaming industry will shift its focus to Eastern Europe this September with the SiGMA By Soft2Bet in Budapest.

In its efforts to tackle illicit gambling practices, Sweden's Gambling Authority, Spelinspektionen, on four operators accused of targeting Swedish consumers through unauthorised "skin" gambling platforms. The affected entities, Gamevio Ltd, Bigskin Trading Limited, Santeda International BV, and the website Samilland.co, have been formally barred from catering to Swedish players due to violations of national gambling laws.

Skin gambling is a trend particularly popular among younger gamers. It involves using virtual items known as "skins" as currency for betting on gaming outcomes, with potential real-world monetary implications. This practice has raised regulatory concerns regarding its classification under gambling laws, exacerbated by the absence of robust age verification measures on these platforms.

According to Spelinspektionen, the risks associated with unregulated online gambling are high, particularly considering their accessibility to minors. The gambling regulator emphasises that sites facilitating "skin" gambling are ineligible for Swedish gaming licences due to critical oversight deficiencies.

The crackdown is part of Spelinspektionen's broader strategy to tighten oversight of Sweden's gambling market. Empowered by expanded authority granted by the Riksdag (Parliament) since July 2023, Spelinspektionen can now take direct action against unlicensed gambling operations, including imposing immediate payment blocks on transactions involving Swedish financial services and unauthorised gambling entities. Spelinspektionen is also allowed to use a false identity to purchase gambling services. Undercover purchases are a way to monitor gaming companies active in the regulated market or in the black market.

To bolster enforcement efforts, Spelinspektionen has allocated additional resources to its surveillance teams. Furthermore, financial institutions licensed by Sweden’s Financial Authority are now required to document all transactions involving gambling operators. This facilitates oversight and enables more effective regulatory enforcement.

Further regulatory reforms are anticipated through proposed amendments to Sweden's Gaming Act of 2018, aiming to ban all in Swedish gambling activities by spring 2025. These legislative changes are intended to strengthen consumer protections and uphold the integrity of Sweden's gambling industry amidst its rapid digital transformation.

Looking ahead, the gaming industry will shift its focus to Eastern Europe this September with the  in Budapest.