The Association of Southeast Asian Nations (ASEAN) has intensified its efforts to combat illegal online gambling, a problem that surged during the Covid-19 pandemic and continues to pose a significant threat in the region.
At a meeting held in Langkawi, Malaysia, representatives from member states discussed joint strategies. Malaysian minister and event chairman, Datuk Seri Mohamad Hasan, announced that China has offered its support to address this issue. In Southeast Asia, much of the online gambling operations target the Chinese market, where the practice is prohibited.
Regional Commitment to Combat Transnational Crime
In an official statement, ASEAN representatives reaffirmed their commitment to combat transnational crime, including human smuggling, human trafficking, drug trafficking, cybercrime, money laundering, and online scams. To this end, the organization has formed a specialized working group on money laundering and a Computer Emergency Response Team (CERT) based in Singapore, which will enable member states to share information and neutralize digital threats more effectively.
The Impact of Illegal Gambling in the Region
According to a 2024 report by the Center for Strategic and International Studies (CSIS), illegal online gambling poses severe risks to ASEAN countries and the region as a whole. The report highlights that the transnational nature of online gambling, combined with lax governance at the national level and ASEAN's fragmented regulatory environment, has allowed these activities to thrive.
Additionally, an analysis by East Asia Forum notes that ASEAN faces not only technological threats but also risks associated with its geopolitical position. Regulatory gaps and the lack of a cohesive legal framework facilitate the proliferation of illegal operations. The report underscores the need for member states to "hope for the best but prepare for the worst" in terms of cybersecurity and regional stability.
Even legal online gambling operations have led to problems. In the Philippines, the Philippine Offshore Gaming Operations (POGOs), initially promoted as a post-pandemic revenue source, became hubs for cyber fraud, kidnappings, and other crimes. In 2023, the Filipino government, under Ferdinand Marcos Jr.'s leadership, completely banned the industry following several scandals.
The Human Cost of Illegal Gambling
In countries like Cambodia, Myanmar, and Laos, the rise of illegal online gambling has led to the establishment of fraudulent operations run by trafficked workers. According to the United States Institute of Peace (USIP), many of these workers are lured with fake job offers and forced to work under prison-like conditions, carrying out romance and investment scams. Additionally, military groups and their allies protect these activities in Myanmar, while in Cambodia and Laos, special economic zones have become shelters for these operations.
China's Collaboration with ASEAN
China's Foreign Minister, Wang Yi, urged ASEAN countries to tackle these crimes decisively. During preliminary talks with Wang, Minister Mohamad Hasan emphasized the importance of regional collaboration to strengthen the ASEAN family amid geopolitical and geoeconomic challenges.
China pressures the Philippines to turn off POGOs.
Next Steps
With Timor-Leste as a candidate to become ASEAN's 11th member, the organization seeks to enhance its capacity to address transnational issues. Current initiatives, such as the CERT and the working group on money laundering, represent significant steps toward greater cooperation and regulation in the region. However, experts suggest that ASEAN must also prepare for complex scenarios given rising tensions in the Indo-Pacific and internal challenges among member states.
