Timor-Leste has unexpectedly halted the issuance of gaming licenses, citing security threats.
The Southeast Asian nation’s government has approved a resolution to revoke previously issued permits for online gaming operations.
In addition, the authorities decided to terminate “all ongoing procedures for granting new licenses and to prohibit any further issuance.”
The resolution was introduced by the Minister for Cabinet Affairs, Agio Pereira, who stated that the decision was made due to “identified risks to national security, social stability, economic integrity, and the country’s international reputation,” according to a government statement published by Plataforma Media.
Rising concerns were also reflected in a report by the United Nations Office on Drugs and Crime (UNODC), which highlighted increasing criminal activity in Timor-Leste’s special administrative region of Oecussi.
The report was released following the arrest of ten individuals suspected of involvement in illegal gambling and computer fraud in the region.
The situation in Timor-Leste mirrors broader concerns surrounding online gaming companies operating across Southeast Asia.
In May, the Isle of Man announced that it had “limited appetite” for cooperating with businesses from the region due to high criminal risks.
Timor-Leste Fails to Heed POGO Warning
Timor-Leste — a small nation of about 1.4 million people that gained independence from Indonesia in 2002 — has been seeking to stimulate its economy by positioning itself as a regional hub for gaming licensing in Southeast Asia and establishing a “friendly international licensing jurisdiction.”
As part of this initiative, the Virtual Gaming Association (VGA) was established, and in April, Timor-Leste issued its first gaming license to Golden River Universe.
However, during the process of setting up its gaming market, neighboring Philippines warned of potential risks, reminding that Philippine Offshore Gaming Operations (POGOs) had led to a surge in criminal activity and were ultimately shut down by President Ferndidand Marcos Jr..
Philippine Justice Secretary Jesus Crispin Remulla, during an official visit, cautioned Timor-Leste officials about possible “socioeconomic and security threats.”
Timor-Leste’s policy reversal comes as the country moves closer to joining the Association of Southeast Asian Nations (ASEAN), having applied for membership back in 2011.
To benefit from deeper regional integration and economic cooperation, the region’s youngest nation must demonstrate a firm commitment to combating organized crime.
“As Timor-Leste prepares to join ASEAN, safeguarding its economic and digital infrastructure from infiltration by organized crime will be critical to ensuring the security and prosperity of its citizens and people across the ASEAN region,” stated the UNODC.
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