Authorities in both Vietnam and South Korea have intensified efforts against large-scale illegal online gambling operations, issuing severe prison sentences and shutting down networks that processed billions of dollars in wagers. The cases highlight how gambling rings, often tied to cryptocurrency and organised crime, continue to expand across borders while authorities seek to contain them.

Vietnam Sentences Four Siblings in $3.8 Billion Case

A court in Ho Chi Minh City has handed down heavy sentences to members of one of Vietnam’s biggest online gambling networks. The operation, which handled transactions totalling US$3.8 billion, was led by four siblings who were convicted of running the ring between 2020 and 2021. At the conclusion of a two-day trial, the group received prison terms ranging from eight to 13 years.

Thirty-nine others connected to the scheme were also sentenced, with penalties spanning from suspended three-year terms to more than a decade in prison. According to the verdict, Vietnamese police are pursuing an Indian man identified as the suspected mastermind behind the enterprise.

The gambling ring created websites for multi-level investments using cryptocurrency, despite digital tokens being illegal for such purposes in Vietnam. Users could open accounts, convert Vietnamese dong into assets like USDT and Ethereum, and use these for gambling. At its peak, the platform reportedly supported around 20,000 active users and an estimated 25 million accounts.

Recruitment often relied on commissions, with individuals incentivised to attract others through social media, particularly Telegram. However, authorities noted that millions in illicit proceeds were diverted into property and luxury cars domestically, while additional funds were laundered abroad. Police have since launched a separate money laundering investigation tied to the case.

Vietnamese officials have also increased scrutiny of online platforms. As reported by Channel News Asia (CNA), in June, internet service providers blocked Telegram after authorities found “signs of law violation.” The government reported that 68 per cent of 9,600 Vietnamese Telegram channels carried harmful or illegal content, including gambling activity.

South Korea Disrupts Illegal Horseracing and Casino Networks

In South Korea, police dismantled multiple gambling rings with operations stretching beyond national borders. The Seoul Metropolitan Police Agency announced the arrest of 11 people accused of running an unauthorised horseracing betting site that drew in around 17,000 members. Investigators revealed that the operators acquired race footage from a China-based vendor for KRW 2 million per month, despite official Korea Racing Authority (KRA) content being legally distributed to 24 other countries.

The site offered unlimited betting options, with individual wagers reaching as high as KRW 30 million. Over time, the network expanded to include Japanese racing events. To avoid detection, the group shifted its headquarters to Ho Chi Minh City, Vietnam, in 2023, while continuing to attract a large volume of South Korean bettors. Police estimate that KRW 1.4 billion passed through the operation before its closure.

Further inquiries linked the scheme to organised crime. Eighteen gang members in Busan were arrested for allegedly managing gambling funds across eight platforms, overseeing transactions worth KRW 170 billion. Authorities believe the group used burner phones, specialised software, and commissions of up to one percent to conceal money transfers and manipulate accounts.

Recruitment campaigns relied heavily on YouTubers and mass text messaging. One YouTuber alone placed bets totalling KRW 214 million before being charged. Overall, 140 gamblers have been prosecuted. Police have confiscated KRW 540 million tied to the ring and are seeking an additional KRW 520 million. Officials stressed that only licensed KRA channels are authorised for wagering and warned citizens to avoid illegal sites.

In a separate case, the Cybercrime Investigation Team of the Daegu National Police Agency revealed another network, run from Cambodia, that processed KRW 44 billion (US$31.6 million) in bets. Ten people were arrested, including the alleged ringleader, while 174 others were charged without detention. More than 11,000 users had signed up for the platform, which promoted prohibited games like Sports Toto and Baccarat. Police described the structure as highly professional, with defined roles for deposits, withdrawals, and user management.