Money Laundering through the Football Sector

Case 11: SOGA I and II
Money Laundering through the Football Sector – July 2009
Illegal soccer gambling is a serious problem in Asia. A recent Interpol operation, SOGA II, provides an idea of the
scale of illegal soccer gambling in that region. Interpol announced that 1 300 people were arrested on the suspect of
illegal soccer gambling and USD 16 million in cash were found during the operation (Interpol, 2008). 1 088 gambling
dens were identified of which most were associated with organised crime. It is estimated that these dens handled
bets which were worth nearly USD 1.5 billion. This is however not the first time Interpol has taken action in this area.
In 2007 SOGA I resulted in 400 arrests, 272 illegal gambling dens and confiscation of USD 680 million worth of bets
(Interpol, 2008). It is of course not said that the gambling sites are only used for money laundering. However, illegal
soccer gambling is according to Interpol often related to money laundering.
Source: Interpol.
82. UEFA has called on the police organisation Europol to investigate possible match-fixing by
Asian betting syndicates in top-flight European football. Meanwhile, Europol has recognised the danger
emanating from corruption in sports. “The phenomenon of game fixing in organised sport is one of the
areas that Europol has on the radar as a crime on the increase” 24 .
83. However, illegal football gambling does not necessarily only involve Asian criminals. On the
contrary, most of the Asian bookmakers are professional and well organised companies with a lot of
expertise in the field. They do not deal with the gamblers directly, but only by means of a network of
intermediaries. In other words, they do not know the individuals or organisations that are placing the bets.
The problem is often situated elsewhere. International organisations or syndicates in Europe, for example,
are trying to secure their investments in the Asian betting market by manipulating games through clubs,
players or referees. Other parts of the world are also associated with match-fixing gambling scams.
According to UEFA, there is an international network of organised crime behind certain European matches
believed to have been fixed for betting reasons. Money traded on a single website can surpass
EUR 100 000 for a third division football match. The UEFA however reports even higher stakes of
EUR 1 million to EUR 2 million per match and stakes that can even increase for large tournaments.
84. Due to the fact that most countries have different gambling regulations, the gambling market is
non-transparent and is a heterogeneous market with a mix of private and state companies acting both
nationally and internationally. Providers are often established in countries which allow the organisation of
gambling activities or in countries that do not regulate or supervise gambling. It is however not easy to take
legal action against providers who offer their services online and are established abroad. This in
combination with the non-transparency of the gambling market makes betting an interesting money
laundering vehicle for criminals.
Case 12: Irregular betting
Several individuals regularly went to casinos in European country A to purchase chips for a substantial total amount.
Analysis revealed that one of the individuals involved was a foreigner without any link to country A. The other
individuals involved are either directly (players or coaches) or indirectly (relatives of players or coaches) linked to the
world of football. There was no economic justification for the large amount of money used to purchase the chips.
Police sources showed that the individuals were known in an investigation into rigged matches. The foreigner was
suspected of bribing players before certain matches with money originating from betting activities linked to fixed
matches. An online betting company established in a foreign country recorded exceptionally high bets for these
matches. His aim was to invest in different clubs to control and corrupt them to play matches that were rigged
beforehand. He mainly focused on clubs in financial trouble that were looking for “lifesaving” sponsors. The
extraordinary scale of the betting or the unusual result of some matches (8-0) pointed to fraud. The money used to
bribe players and to buy the chips could have originated from criminal activities of which the individuals were
suspected.
Source: Belgium.
24 World Sports Law Report (2007).
© 2009 FATF/OECD - 25