Timor-Leste Cancels All Online Gambling Licenses Amid Security and Stability Concerns

Government Acts on Security Concerns

The government of Timor-Leste has approved a resolution to cancel all existing online gaming and betting licenses, effectively shutting down the nascent industry. The decision, made during a Council of Ministers meeting on Wednesday, October 1, 2025, also prohibits the granting of any new licenses for such activities. The resolution was presented by Minister for Cabinet Affairs Agio Pereira.

Officials justified the intervention by citing 'identified risks to the country's security, social stability, economic integrity and international reputation'. This move comes only months after Timor-Leste launched its online gaming regulatory regime, with the first offshore gaming license granted in April 2025 to Golden River Universe (GRU).

UNODC Warnings Highlight Criminal Infiltration

The government's decision follows stark warnings from the United Nations Office on Drugs and Crime (UNODC). A UNODC report, published on September 11, 2025, highlighted the proliferation of criminal networks in Oecussi, an enclave of Timor-Leste. The report indicated that organised crime groups were using foreign direct investment to establish illicit gaming operations and scam centers, exploiting regulatory gaps.

The UNODC observed that 'The expansion of the Southeast Asian scam centre industry into Timor-Leste is signifier of its overall growth.' Investigators found signs of digital crime, including the involvement of individuals previously convicted of similar offenses elsewhere in Asia. The warning came after domestic law enforcement detained 10 suspects allegedly connected to unlawful gambling and computer fraud schemes in Oecussi.

The UNODC report drew parallels to developments in other regions, stating that 'Once infiltrated by organised crime these jurisdictions often become hubs for cyber fraud, drug trafficking, and human trafficking.' Links were identified between entities in Timor-Leste and notorious transnational organized crime groups, including the 14K Triad and figures like 'Broken Tooth,' a former Macau gangster.

Broader Implications and Future Enforcement

The cancellation of licenses is seen as a critical step to safeguard Timor-Leste's international image and prevent it from becoming a hub for online crime. The country is preparing to join the Association of Southeast Asian Nations (ASEAN) later this year, making the protection of its economic and digital systems against infiltration by organised crime particularly crucial.

The resolution mandates that the responsible minister will work alongside security forces to ensure compliance with the new restrictions. This includes strict supervision of the ban and penalties for operators attempting to bypass the rules. The government has emphasized that this is not a symbolic gesture but a commitment to rigorous enforcement.