Timor-Leste bans online gambling licenses over security risks

The government of Timor-Leste has canceled all licenses for online gambling and betting, citing threats to national security, social stability, and the country’s international reputation.

The Council of Ministers resolution, presented by Minister of the Presidency of the Council of Ministers Agio Pereira, calls for the “cancellation of ongoing procedures for granting new licences and the prohibition of issuing new licences” for online gambling activities, according to an official statement cited by Macau Business.

The decision follows “identified risks to the country’s security, social stability, economic integrity and international reputation,” the statement added. The resolution also assigns responsibility to the relevant minister, in coordination with security forces, to oversee the implementation of the new measures.

The move comes in the wake of a United Nations Office on Drugs and Crime (UNODC) report released on 11 September, which highlighted the proliferation of criminal networks in Oecussi, a Timorese enclave bordering Indonesia.

The report noted evidence of digital criminal activity, including involvement by individuals previously convicted of similar crimes in other Asian countries. Investigations led to the arrest of 10 people suspected of illegal gambling and computer fraud.

Experts warned that Timor-Leste is becoming a target for Southeast Asia’s online gambling and fraud operations, similar to issues seen in Cambodia, Laos, the Philippines, and Malaysia. The risk could increase with Timor-Leste’s accession to the Association of Southeast Asian Nations (ASEAN) in October.

The UNODC report also revealed links between government-associated individuals and hotels allegedly hosting companies involved in criminal activity, some connected to former Oecussi regional leadership.