Online gambling is taking Sri Lanka by storm, with many youths increasingly getting involved in a web of cyber gambling and associated services and scams. This latest iteration of online gambling, practically linked to short forms of cricket sponsorship, is finding itself into the homes and pockets of many in Sri Lanka, through various mobile phone-friendly gambling websites and dedicated apps. One only has to scan the World Wide Web about local issues or content and targeted advertisements from online gambling and betting platforms will ‘pop-up’, promising the wary digital surfer a chance to ‘win big’; a magnetic prospect for many who are struggling to get by due to the economic situation and employment challenges. Sri Lanka is only now waking up to the socio-economic and security challenges that such illicit platforms create.
Yesterday (5), eleven Indian nationals who were arrested by the Thalangama Police for allegedly engaging in illegal online gambling activities in the country have been remanded until tomorrow by the Kaduwela Magistrate’s Court. Acting on a tip-off, a venue was raided in the Akuregoda area of Thalangama. During the operation, eight males and three females – all Indian nationals – were apprehended for allegedly engaging in illegal online gambling using computers and mobile devices. Police also seized 20 mobile phones, three laptop computers, and one tablet device as evidence. The female suspects are aged 22, 30, and 43, while the male suspects are aged 25, 26, 27, and 29. Similarly, last year the Police apprehended more than 50 foreign nationals, including 30 Chinese nationals, four Indian nationals and six Thai nationals, from two locations in Hanwella. They were charged for involvement in online financial scams. The Police have also confiscated dozens of laptops, over five hundred mobile phones, 332 USB cables, 17 routers, and other equipment from the suspects’ possession. It was alleged that the group was committing financial fraud using social media and telephones. The concerns about the online gambling issue and the prevention of online scams also highlight the lack of awareness amongst the public about such issues, and the weak nature of cyber-security frameworks of the nation.
Online gambling has emerged as a lucrative sector in Southeast Asia, luring in foreign investors and capital across the region. Consisting of live casino games, online gaming machines, and sports betting, the sector is primarily driven by offshore gamblers, most of whom are of Chinese or Southeast-Asian origin. By setting up operations in states with liberal gaming laws, they effectively evade China’s stringent ban on gambling activities. However, according to the Center for Strategic and International Studies (CSIS), amidst rising criminal activity and illicit financial flows, Southeast Asia’s booming online-gambling sector has resulted in economic and political losses for the member states of the Association of Southeast Asian Nations (ASEAN). This can be attributed to the transnational nature of online gambling, lax governance at the national level, and ASEAN’s fractured regulatory environment. While countries initially viewed the sector as a surefire solution for post-pandemic recovery, online gambling’s risks have been made apparent, precipitating legislation in countries like Indonesia, Singapore, and Laos cracking down on its operations. The Philippines and Cambodia have achieved notoriety due to their reputation as gambling meccas for local and foreign nationals. Both have facilitated the industry’s growth within their borders through regulations conducive to online gambling operators.
Globally, public sector watchdogs and security agencies have flagged online gambling, betting, and even some forms of online gaming as a serious impact on the operational integrity of public officials, law enforcement officials, and even members of the armed forces. This is due to online gambling and betting leading to those who get addicted to them vulnerable (financially and otherwise) to exploitation by nefarious elements who are involved in crime, corruption, or hostile activity towards the state. It is timely and prudent for the Sri Lankan Government to take a closer look at a snowballing crisis and nip-it in the bud with sound regulations, awareness-building, and compliance checks, before the situation gets out of hand.