Earlier this month, Taiwanese prosecutors charged 35 individuals accused of operating a large illegal online gambling and money laundering scheme involving over NT$30.6 billion in illicit funds. The case revolves around a network using custom-built payment platforms to handle gambling proceeds tied to unlicensed websites across several Asian countries.
The Taipei District Prosecutors Office stated the scheme concealed gambling transactions for years using intermediary services to obscure fund origins and destinations. Investigators estimate the operation processed about US$975 million over several years.
**Payment platforms used to mask gambling transactions**
A 41-year-old man named Lo is identified as the central figure in the case. Lo, who operated a Hong Kong-style diner in Taipei, allegedly began the operation in August 2020 after acquiring the source code for a payment platform system, which led to the creation of services called HeroPay and MatchPay.
Lo faces charges including money laundering, organized crime, and illegal online gambling, with prosecutors seeking a nine-year-six-month sentence and confiscation of related proceeds.
Taiwanese investigators claim the network controlled the payment services as intermediaries for illegal online betting. By processing wagers through their systems, the group hid fund origins and avoided standard monitoring safeguards, growing the operation to nearly US$1 billion. After launching their gambling website, authorities say they no longer needed external banking partners.
Prosecutors highlight the platforms as central to the laundering scheme, noting they redirected player payments to complicate tracking efforts by banks and regulators. The gambling websites were based in multiple countries, including China, Japan, and India. The payment platforms allegedly helped these sites collect funds without direct financial oversight exposure.
**Legitimate Payment Options**
Legitimate licensed online casinos offer multiple ways for players to move funds, aiming for fast, safe, and simple transactions. Often, casinos incentivize deposits with bonuses or credits linked to payment options that lower processing costs, as seen at casinobonusca.com. As mobile gaming rises, digital wallets and mobile-first services, such as Apple Pay, PayPal, and cryptocurrencies, become common choices for players.
**Expansion into in-house gambling operations**
In June 2022, the group reportedly expanded by launching an online gambling site called Rich 11, offering baccarat, slots, and sports betting. HeroPay served as the primary deposit method on this site.
Authorities estimate that from July 2021 to September 9, 2025, funds linked to both Rich 11 and other illegal platforms totaled NT$30.695 billion, supporting personal profits, payment platform operations, and other business investments.
One such business was another restaurant in Taipei, Dongyin Quick Knifeman, believed to function similarly as a front for the gambling operation.
**Charges reflect broader enforcement efforts**
Among the indicted is a woman named Huang, accused of handling financial and administrative tasks. Authorities say she rented office space under the restaurant’s name as the operation’s base. Prosecutors seek over six years in prison for Huang.
All defendants were charged under Taiwan’s Organized Crime Prevention Act, Money Laundering Control Act, and applicable Criminal Code provisions related to online gambling.
The case follows Taiwan’s increased enforcement against illegal betting. Legal sports wagering in Taiwan is tightly controlled, which authorities claim has fueled underground platform growth. Officials have pursued high-profile gambling-related cases involving athletes.
In June 2025, lawmakers passed amendments significantly increasing penalties for sports betting manipulation, with sentences from seven years to life. While these changes address match-fixing rather than payment processing, prosecutors assert the legal framework reflects concern over illegal gambling operations’ scale and sophistication.
The current case underscores how financial technology can support illicit activity, prompting authorities to target both gambling sites and the systems moving money behind the scenes.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com