Arrest of Criminal Gang Running Illegal iGaming Sites

In South Korea, 26 people were arrested for operating two illegal iGaming sites from Dubai with a turnover of $90 million.

Details of the Arrest

The Gangwon Provincial Police announced the arrest of 26 members of a criminal gang that had been running two illegal iGaming sites through a shell company in Dubai since 2021. Ten of them, including the 32-year-old mastermind, were detained. The brands’ turnover reached $90 million, and authorities seized $4.5 million from the mastermind and key executives.

Creation of the Shell Company

The gang set up a shell corporation in Dubai and recruited South Korean citizens by promising high incomes. Recruits were sent to Dubai and registered as employees to obtain work visas. Upon arrival, the leaders confiscated passports, effectively keeping the workers in forced labor.

Promotion and Communication

The operators actively purchased ads on social media, including YouTube. Internal communication was conducted through Telegram to avoid police detection.

Investigation and Police Actions

The investigation started after a report from the Korea Sports Promotion Foundation and lasted about 10 months. The criminals chose the UAE due to the lack of international judicial cooperation and the ease of money laundering.

Police reported that they announced the pre-indictment seizure of 6.086 billion won from the mastermind and key executives. Intensive measures continue to combat gambling-related crimes.

Organizational Structure

Within the gang, a hierarchy was established to control employees. Senior members, such as team leaders, managed the passports of subordinates to prevent them from returning to South Korea. All instructions were communicated via Telegram.

Choice of Base and Strategic Advantages

According to investigators, the criminals chose Dubai as their operational base because of weak international judicial cooperation and the ease of laundering funds.