Regulatory NEWS

The Philippines deported 165 Chinese nationals employed by a Philippine Offshore Gaming Operator (POGO) in Bamban, Tarlac. 

The Presidential Anti-Organized Crime Commission (PAOCC) confirmed the deportation of 165 out of 167 Chinese workers to Pudong District, Shanghai. Meanwhile, two individuals face pending cases in the , involving trafficking in persons and serious illegal detention charges. 

Upon reaching China, the deported individuals will undergo a 45-day detention period while charges are prepared. Additionally, they will be blacklisted by the Philippines' immigration bureau. 

Following a directive from Malacañang Palace, the Anti-Money Laundering Council froze Zun Yuan's assets, including its compound. The raid on March 14 uncovered 408 workers from various nationalities involved in the POGO operation. 

Authorities revealed that the deported Chinese nationals engaged in scamming activities and lacked proper travel documents, categorizing them as "undesirable aliens". Many were reportedly coerced into the operation, with their passports confiscated to prevent their departure.  

The Chinese Embassy the deportation, emphasizing joint efforts to combat fraud, kidnapping, and other crimes related to offshore gambling. This collaboration underscores both countries' commitment to curbing illegal activities in the region. 

The had been vocal in its commitment to maintaining pressure on illegal activities and protecting the public from the dangers of cross-border gambling and telecom fraud.  

The crackdown reflects broader challenges across Southeast Asia, where crime syndicates exploit workers, often under false pretences, to engage in fraudulent online activities. The UN Office on Drugs and Crime highlights the scale of this issue, with victims coerced into participating in elaborate scams, exacerbating financial losses regionally. 

This comprehensive action not only addresses immediate concerns but also signals a concerted effort to combat transnational crime and protect vulnerable individuals from exploitation in the region's burgeoning online gaming industry. 

Andrew Rhodes, Chief Executive of the UK Gambling Commission (UKGC) confirmed that the third White Paper consultation will focus entirely on the land-based gaming sector.

Speaking at the Bingo Association Annual General Meeting (AGM) 2024, Rhodes provided insights into the . Rhodes addressed the audience, highlighting the importance of collaboration and data-driven decision-making in the gambling sector.

Rhodes began by expressing his enthusiasm to update the attendees on the Commission's work since the previous AGM, emphasising the ongoing efforts to implement the White Paper effectively. He underscored the role of the Government's policy in shaping the future of gambling across England, Scotland, and Wales, emphasising the need to prioritise its successful implementation for the benefit of all involved.

"The White Paper and the Government policy it contained was a signal moment for gambling in Great Britain
and a once in a generation opportunity to deliver positive change."

Rhodes also shed light on the Commission's commitment to enhancing the evidence base around gambling, citing the importance of accurate data for effective regulation. He highlighted the following priority areas where the GC wants to see more research being conducted, namely:

• early gambling experiences and gateway products
• the range and variability of gambling experiences
• gambling-related harms and vulnerability
• the impact of operator practices
• product characteristics and risk
• illegal gambling and crime.

Rhodes also mentioned ongoing stakeholder engagement initiatives and collaborations with the Department for Culture, Media and Sport (DCMS) to ensure a coordinated approach to implementing regulatory changes.

During his , Rhodes discussed the various consultations conducted by the Commission, including topics such as Financial Risk Checks and regulatory returns. He highlighted upcoming changes, such as the tightening of age verification processes and the introduction of new rules affecting land-based licensees. These adjustments, outlined in the Licence Conditions and Codes of Practice (LCCP), are set to be implemented in stages from August 2024 to February 2025.

The Alabama State Senate has been experiencing a demise of a significant push to legalize various forms of gambling, including a state lottery. Despite the House of Representatives passing House Bills 151 and 152 with a substantial majority, the Senate did not approve the amended versions before the legislative session’s conclusion.

The proposed legislation aimed to legalize an education state lottery, electronic games of chance, raffles, and paper bingo at seven dog racing or bingo locations statewide. It would have also allowed residents to participate in national lotteries such as Mega Million and Powerball. However, tables, cards, dice, and live dealers would have remained prohibited.

The bills’ authors, Rep. Russell Blackshear and Sen. Greg Albritton, who also sponsored them in the Senate, were unable to break Alabama’s 25-year deadlock on . The last time Alabama voted on gaming, albeit unsuccessfully, was in 1999.

During a Senate test session, the two amended measures fell just one vote short of the required 21 for approval. A significant point of contention was the Senate amendments introduced in March. These amendments scaled back the bill, removing sports betting language, reducing the number of gaming venues involved, and altering the casino proposal to focus solely on racing.

Sen. Albritton, disillusioned by the exclusion of sports betting, ended up voting against the package. He expressed frustration over the state’s refusal to regulate the expanding sports gaming industry, much of which operates illegally and undercover. Albritton was also disappointed that the amended bill prevented the Poarch Creek Indians from entering a compact with the state.

The proposed legislation would have established the Alabama Gaming Commission to regulate approved forms of gambling. It also projected that a state lottery could generate annual net revenue of $305 million to $379 million, which would have been directed towards educational initiatives.

Rep. Barbara Drummond, who supported the bill in the House, expressed disappointment over the missed opportunity, especially given the bill fell short by just one vote. She highlighted the potential benefits of the bill, including healthcare for

The stalemate also frustrated those who believe there is widespread support for an educational lottery. Sen. Arthur Orr committed to pushing for a lottery bill in the next session that would give citizens the right to vote on the lottery without being hijacked by gambling interests wanting to expand gaming in the state.

However, Gov. Kay Ivey has stated she does not plan on calling a special session for the bill this year, leaving it in limbo until 2025. Despite this setback, Sen. Albritton remains optimistic about the future of gambling legislation, assuring that “the problem’s not going away. We’re getting closer.”

Abu Dhabi's popular raffle draw, Big Ticket, will return to action following a, with the next live draw scheduled for June 3. This comes after UAE lottery providers like Mahzooz and Emirates Draw had been ordered to suspend their operations starting January 1, 2024. Both Mahzooz and Emirates Draw had complied with the regulatory directive from the GCGRA, both taking to social media, describing the pause as an industry-wide mandate consistent with the Regulators’ new role to create a well-regulated gaming environment in the United Arab Emirates.

During the operational pause, Big Ticket was in a position to evaluate its readiness to align with the evolving regulatory framework established by the GCGRA, aimed at ensuring a secure and regulated commercial gaming sector in the country.

With over thirty years of operation, Big Ticket has been a favourite among UAE residents, bringing hope for some and an integral part of life for others. The practice of pooling resources among expats to purchase tickets collectively has been a common phenomenon, with groups ranging from 4 to 40 individuals participating. In an effort to reinvigorate interest, Big Ticket is offering participants a chance to win a guaranteed sum of Dh10 million for the upcoming draw in June, with a buy 2 get 3 promotion on tickets.

The regulatory landscape in the UAE is undergoing a transformation, as the government moves towards a consolidated approach with only one national lottery operator authorized by the GCGRA. While Mahzooz and Emirates Draw have completed their license applications for the national lottery, the question of whether Big Ticket will assume this role exclusively or if other operators will be permitted to coexist remains unanswered.

The recent suspension of lottery operations highlights a notable shift in the UAE's stance on gambling, traditionally prohibited by local laws. The new licensing framework and the establishment of the GCGRA indicate a strategic move towards regulating the gaming industry, underlining the government's commitment to a structured and controlled gaming environment.

The Chinese government has announced the extension of the facilitated individual travel (FIT) scheme to include eight additional mainland cities for visits to Hong Kong and Macau, effective from May 27, 2024.  

Asia Gaming Brief reported that the National Immigration Administration revealed the expansion following approval from the State Council, signalling a concerted effort to enhance cross-border travel arrangements and promote economic cooperation. 

This development follows a for Chinese nationals on package tours implemented last May 6, easing travel between Macau and neighbouring Hengqin. This initiative allows participants in package tours to move freely between the two regions over a seven-day period. 

The newly added cities encompass provincial capitals such as Taiyuan, Hohhot, Harbin, Lhasa, Lanzhou, Xining, Yinchuan, and Urumqi, representing diverse regions across China. 

The FIT scheme, introduced in 2003 in response to the SARS outbreak, facilitates independent travel for mainland residents to Hong Kong and Macau, promoting tourism and cultural exchange. 

The Macau Chief Executive anticipates a significant uptick in mainland tourist arrivals, citing the potential for substantial economic benefits to the city. The recent surge in visitor numbers underscores the importance of mainland tourism to Macau's economy, particularly in the gaming sector. 

Macau experienced a notable increase in visitor arrivals, predominantly from mainland China, contributing to a substantial year-on-year rise in gross gaming revenue. The addition of more cities to the Individual Visit Scheme (IVS) list is expected to further stimulate tourism and retail industries in Macau. 

Macau authorities are committed to fostering favourable conditions for mainland residents to visit the city, emphasizing dialogue with Chinese authorities to facilitate travel arrangements. Efforts to diversify the economy beyond gaming continue, with a focus on promoting non-gaming activities and attracting international visitors. 

While the impact on the gaming sector remains uncertain, analysts suggest potential short-term benefits from the expansion of the IVS list. Macau's government encourages gaming operators to cater to international clientele and enhance non-gaming offerings to support long-term economic growth. 

As increase and non-gaming initiatives gain momentum, Macau seeks to balance its reliance on mainland tourism with efforts to attract a more diverse visitor base. Collaboration between government entities and industry stakeholders will play a crucial role in shaping Macau's tourism landscape and economic resilience. 

The Secretariat of Prizes and Betting (SPA) operating under Brazil's Ministry of Finance has announced a directive requiring licensed operators to include .bet in their domain names, a decision aimed at distinguishing legal gambling platforms from unlicensed offshore competitors.

The decision to implement this requirement followed deliberations within the secretariat regarding whether operators should add .bet or .bets to their URLs. By mandating this change, the SPA intends to enhance transparency for players, ensuring they engage in gambling activities with authorized operators. Moreover, this directive will improve regulatory oversight, enabling authorities to promptly identify irregularities and enforce necessary actions.

This URL mandate forms part of a broader spectrum of measures proposed by the Ministry of Finance to revamp . These measures include stringent payment regulations and the prohibition of betting incentives. Notably, restrictions have been placed on payment methods, ruling out cash, credit cards, bank transfers, and cryptocurrencies for bettig purposes. Instead, bettors are required to fund their accounts exclusively through electronic transfers like Pix, TED, debit cards, or prepaid cards.

Furthermore, recent guidelines have barred gambling operators from offering any form of bonuses or advantages, even for promotional purposes, in response to integrity concerns. Additionally, a prior regulation mandated operators to engage with integrity monitoring bodies such as the International Betting Integrity Authority (IBIA), leading to collaborations with entities like Yolo Group, KTO, Oddin, and Galera.bet.

The Secretariat of Prizes and Betting (SPA) was established under the Ministry of Finance on January 31, 2024. It will comprise three sub-secretariats tasked with various functions including regulating the betting market, overseeing issues like corruption and money laundering, evaluating operator authorization requests, monitoring tax collection, and handling administrative sanctions. Additionally, the SPA has appointed as its first President, as confirmed by the .

Senator Win Gatchalian has called for an inquiry into the increasing presence of foreign nationals, potentially associated with Philippine Offshore Gaming Operators (POGOs), within exclusive gated communities. In a press statement, Gatchalian the necessity of scrutinizing gatherings of foreign nationals to safeguard against rising criminality. 

Highlighting ongoing apprehensions voiced by residents of Multinational Village in Paranaque City, underscored the urgency of investigating the surge in foreign residents within the subdivision. Reports indicate the emergence of enclaves catering exclusively to these foreign nationals, raising alarms about potential clandestine activities and the need for heightened vigilance. 

"This is something worthy of attention. We need to ensure that any significant gathering of foreign nationals is not for the purpose of engaging in illegal activities given the trend of rising criminality attributed to these individuals involved in the industry," Gatchalian said. 

Gatchalian voiced apprehension over the possibility of fugitives from abroad finding refuge within these gated communities, capitalizing on their knowledge of local dynamics and connections to evade scrutiny. Emphasizing the audacity of these individuals, Gatchalian underscores the need for robust investigations and measures to counteract potential criminal syndicates exploiting loopholes and securing protection from influential figures. 

Referencing the November 2023 raid in Ayala Alabang Village, where 11 Chinese nationals were apprehended for illegal online gambling, Gatchalian underscored the gravity of the situation. The seizure of firearms and gambling paraphernalia during the raid underscores the potential threats posed by such clandestine operations, further underscoring the imperative of proactive measures to curb illicit activities. 

The senator also reiterated his stance on the termination of POGO operations in the Philippines, citing the disproportionate social costs vis-à-vis economic gains. Emphasizing the detrimental impact on societal well-being, Gatchalian underscored the imperative of prioritizing measures to safeguard national security and integrity over short-term economic benefits. 

POGOs are online gambling firms based in the Philippines that primarily serve customers located outside of the country. In essence, they operate in the international market. To ensure legal compliance, POGOs are to obtain licence from the Philippine Amusement and Gaming Corporation (PAGCOR), the regulatory body overseeing gambling activities in the Philippines. This licensing process is essential for POGOs to conduct their operations within the bounds of the law and maintain the integrity of the industry.  

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

Having legalised online gambling in 2021, overseen by Lotería de la Ciudad de Buenos Aires (LOTBA), Buenos Aires authorities are now gearing up to implement stricter compliance measures for gambling operators, both offline and online, within the city.

The Buenos Aires legislature has announced amendments to the 'Codigo Contravencional,' expanding penalties for gambling violations. Municipal deputies Paola Michielotto and Sergio Siciliano are leading efforts to reinforce , emphasising the importance of promoting and restricting gambling to individuals above 18 years old, whether online or in licensed establishments.

Worries about excessive exposure to gambling advertisements by minors have prompted the proposed changes particularly due to their prevalence on digital platforms and during popular events including football matches. The aim is to mitigate the adverse effects of under-age gambling, which extend beyond financial implications, impacting societal issues and mental health.

Strict measures outlined in the proposed include fines for businesses found allowing individuals under 18 to gamble. All establishments in Buenos Aires must adhere to regulations preventing minors from participating in gambling activities. Payment service providers (PSPs) will be mandated to verify adult authorisation for payments made within Buenos Aires, with penalties for non-compliance. Banks and financial institutions will also be prohibited from facilitating fund transfers from under-age accounts to gambling platforms. Additionally, new advertising guidelines mandate warnings about gambling risks and age restrictions on all promotions in the city.

The gambling and lottery industry is facing severe challenges in Argentina, mainly due to high inflation rates, (211.4 percent annual inflation in 2023, the highest in 32 years). Consequently, the Buenos Aires Chamber of Official Lottery Agents (CAOLAB), last February, urged immediate policy changes to mitigate the impact of high inflation rates.  CAOLAB emphasized the need for competitiveness without state subsidies. One of their proposals is the introduction of in-person sports betting and video lottery terminals to counter revenue losses, which is a move witnessed in Brazil last month when AMZ Loterias do Brasil launched the firstin the country.

The Philippine Esports Organization () has imposed penalties against players involved in match-fixing incidents in the country’s Mobile Legends Bang Bang Development League (MDL). 

This move follows the earlier suspension by the MDL Philippines against the three players implicated in the incident. MDL Philippines announced the suspension of the involved players last April 25. 

Jungler Jhonjie Paul "Jiee" Dela Rosa from TNC Z4, midlaner Raven "Aeris" Arellano, and jungler Christian John "Nyija" Calantoc from RSG El Ganador have been suspended from participating in any MLBB esports ecosystem tournaments for three years. This suspension includes all MOONTON-endorsed events, except for the MDL and the Professional league (MPL Philippines). 

Also, effective from May 2, 2024, until April 30, 2027, PESO’s ban extends to organization-sanctioned events, including SIBOL national try outs and competitions organized by them. 

In a statement, PESO its commitment to upholding the integrity of esports and promoting ethical conduct among players. The three-year ban serves as a disciplinary measure aimed at safeguarding the integrity of competitive gaming and ensuring fair play at national and international levels.  

“While quick money is enticing, we remind young talents to keep your integrity intact as it is the cornerstone of true success and lasting fulfilment,” PESO said. 

“At PESO, upholding professionalism and ethical conduct is integral to our mission of nurturing players who represents the Philippines with honour at the World Championships,” it added. 

In a press conference, Matthew Chan, Esports League Operations Lead at MOONTON Games, explained that the decision to impose a three-year ban was based on the severity of the offense and the need for a specific timeline. This duration represents one of the harshest penalties imposed by MOONTON for similar incidents, signifying the gravity of the offence. 

Marlon Marcelo, Executive Director of PESO, emphasised the importance of giving players a chance to redeem themselves while acknowledging the severity of their actions. He expressed hope that the three-year ban would provide offenders with an opportunity for reflection and rehabilitation. 

MOONTON, PESO, and the Games and Amusement Board (GAB) are collaborating to implement measures to prevent future match-fixing incidents. This initiative aims to strengthen governance in esports and ensure fair competition, with guidance from regulatory bodies and industry stakeholders. 

Moving forward, MOONTON said it intends to work closely with PESO and GAB to develop effective solutions and safeguard the integrity of . 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

Dutch authorities have apprehended a suspect linked to the ZKasino scam. The arrest was made on 29 April, with the suspect, a 26-year-old man, facing charges of fraud, embezzlement, and money laundering.

The ZKasino platform, which initially presented itself as an innovative gambling platform, has been under scrutiny for its dubious operations. The platform promised investors a return on their investments within 30 days, a promise that was never fulfilled. The smart contract associated with the platform suggested that there was never an intention to return the funds, raising red flags among the investor community.

The Fiscal Information and Investigation Service (FIOD) seized assets worth over 11.4 million euros ($12.2 million) during the arrest. The seized assets include cryptocurrency, real estate, and luxury cars. This marks the first arrest in the ZKasino fraud case, where investors have reportedly lost at least $33 million in digital assets.

The platform went live on April 20, attracting over 10,515 Ether (ETH) from more than 10,000 investors. However, investor concerns escalated when an on-chain transaction revealed ZKasino moving all 10,515 ETH into the Lido staking protocol. Additionally, the platform altered the wording on its website, removing a statement that assured investors that their ETH “would be returned.”

Adding to the controversy, ZKasino announced in a March post that it had closed a Series A investment round at a $350 million valuation. The platform claimed backing from crypto exchange MEXC and venture firm Big Brain Holdings, among others. However, Big Brain Holdings later clarified that it had not invested in ZKasino, labeling the platform as “fraudulent.”

While the identity of the suspect remains unconfirmed, speculation is rife within the crypto community. The suspect’s detention has been extended by 14 days for further investigation. As the case unfolds, risks and challenges in the rapidly evolving world of need to be continuously evaluated. The ZKasino case is a cautionary tale for investors, highlighting the importance of due diligence and regulatory oversight in the crypto space.