Díli, Aug. 12, 2025 (Lusa) - The Timorese non-governmental organisation Fundação Mahein (FM) has warned that foreign investment in online gambling and casinos poses a risk to Timor-Leste, where gambling “is already a serious and growing problem”.
“The FM considers that the proposed investments in the online gambling and casino sector in Timor-Leste pose significant risks, particularly for the most vulnerable communities and for the country’s relations with international partners,” the Timorese non-governmental organisation said in an analysis released on Monday.
While considering that foreign investment is essential for the country's development, FM stresses that it must also “serve the public interest, promote inclusive development and respect human rights and good governance, protecting the people and institutions from exploitation”.
With regard to significant risks, the non-governmental organisation points out that gambling is already a “serious and growing problem in Timor-Leste”, with addiction causing financial pressure and domestic conflicts in families, and that the situation could worsen.
Another risk, according to FM, is that casinos and online gambling platforms are recognised as “channels for organised criminal activities, including prostitution, human trafficking, fraud, cybercrime, drug trafficking and money laundering”.
“The national capacity to detect and prevent sophisticated cyber and financial crimes remains limited. This vulnerability increases the likelihood that operations in Timor-Leste will be used as a front for criminal activities,” the FM stresses.
The analysis was carried out after the Timorese authorities set up the General Inspection of Gambling, the Oecussi Digital Centre, issued the first online gambling licence, developed the ‘Operational Standards for Online Gambling in Timor’ and established the Virtual Gambling Association of Timor-Leste.
In its analysis, FM calls on parliament to exercise greater oversight of the legal, financial and political implications of initiatives such as the Oecussi Digital Centre, the issuance of gambling licences and the creation of gambling-related financial institutions.
The non-governmental organisation also calls for increased public debate and transparency on the issue and the drafting of a law that “establishes clear rules for the regulation of digital infrastructure and services”, including protection against cybercrime and financial fraud, and investment in the institutional capacity of the police to regulate the sector.
FM concludes its analysis by recommending that foreign investment be made in “sectors that promote long-term sustainable and community-based development, rather than sectors that promise quick profits but carry high risks of social harm and crime”.
MSE/AYLS // AYLS
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