Lanka emerges as new hub for offshore online gaming operations

Sri Lanka is emerging as a new destination for offshore online gaming and scam operations, with criminal syndicates displaced from countries such as the Philippines and Cambodia reportedly shifting operations to the island, an investigation by MonetaBrief has found.

Thousands of workers from China, the Philippines, Vietnam and Cambodia are believed to have entered Sri Lanka, both legally and illegally, to work in online gaming operations targeting countries where gambling is prohibited or tightly regulated.

The investigation found that recruiters were using TikTok, Facebook, Telegram and other social-media platforms to attract former workers from Philippine Offshore Gaming Operators (POGOs), which were banned in the Philippines amid concerns over money laundering, cybercrime, human trafficking and other criminal activity.

Some recruiters are reportedly promoting Sri Lanka, particularly the Colombo Port City Special Economic Zone, as a stable alternative to the Philippines and Cambodia. Jobs advertised online offer salaries of US$1,200 to US$2,000 a month, commissions, accommodation and other benefits.

Sri Lanka has also seen raids on suspected scam operations involving foreign nationals, while authorities have shut down websites targeting local users.

Deputy Minister of Digital Economy Eranga Weeraratne said the Government was discussing online gaming with law-enforcement agencies and foreign governments, including Thailand and Cambodia.

He said regulations being prepared by the newly established gambling regulator would apply throughout Sri Lanka, including the Port City.

“We are dealing with a cross-border issue,” Weeraratne said, adding that an international knowledge-sharing network was being developed.

The investigation also raised concerns over the use of cryptocurrencies, including Tether, in transactions linked to the operations, as well as possible money-laundering risks.