Hong Kong police uncover HK$250 million illegal gambling operation with Southeast Asian connections, 12 arrests

August 28, 2024 – (Hong Kong) Hong Kong police have dismantled a massive illegal online gambling operation with roots in Cambodia, arresting 12 people linked to a transnational criminal syndicate that has been operating since February 2023. The operation, dubbed “Skyocean,” targeted a gambling ring that actively recruited gamblers through social media and used middlemen to manage the illicit funds.

The syndicate, believed to have ties to local gangs in Hong Kong, used the city and other markets in Southeast Asia as their primary operating bases. To evade local authorities, operations were conducted through servers located overseas, with the platform registered in the United States, complicating the investigation due to its cross-border nature.

The police operation culminated in a series of raids on a luxury private residential complex in Tseung Kwan O, which was used as a 24-hour betting and cash-out center. Police arrested five men and seven women, aged between 20 and 56, during a four-day operation. These individuals are involved in various capacities, ranging from core members managing day-to-day operations to middlemen responsible for managing puppet accounts.

The gambling platform offered a range of activities including baccarat, slot machines, fishing games, lotteries and horse racing, and charged a commission of 2% to 5% on transactions. The syndicate also tailored their offerings based on major sporting events to attract more users, such as the recent Olympic Games and English Premier League matches.

One of the more sophisticated aspects of this operation was the use of residential units in high-security private estates, rented out for HK$20,000 per month, to serve as operational hubs. From these hubs, the group managed large amounts of gambling money and laundered the proceeds. To further obscure their activities, the syndicate used cash transactions to purchase cryptocurrencies, which were then used to launder the money.

Police seized key evidence during the raids, including three computers, 218 phones linked to puppet accounts, 386 bank cards and various luxury items believed to have been purchased with the proceeds of the crime. Data from the computers showed the gambling site processed around HK$250 million worth of bets from April to August 2024, an average of HK$50 million per month, with an estimated net profit of around HK$16 million over five months.

The operation highlights the ongoing challenges law enforcement agencies face with online illegal betting, particularly with platforms that operate across borders and use sophisticated technology to evade detection. Hong Kong police have highlighted the illegality of such operations under the city’s Gambling Ordinance, which bans any form of gambling outside of legally licensed venues. Penalties for orchestrating such activities can be severe, including up to seven years in prison and fines of up to HK$5 million.

The arrests serve as a critical reminder to the public about the dangers of participating in illegal gambling operations and the importance of maintaining the integrity of one’s bank accounts. Police have urged residents to remember not to rent, lend or sell their bank accounts, as doing so could involve them in money laundering activities, which are punishable under Hong Kong’s Organised and Serious Crimes Ordinance by up to 14 years in prison and hefty fines.