Can Asia Outsmart the “Clever Scammers” Targeting iGaming?

Fueled by a young, mobile-first population and advanced digital payment ecosystems, Asia’s gross gaming revenue (GGR) is conservatively estimated at $25–30 billion in 2025. However, due to widespread unregulated or offshore operations — particularly in China, India, and Indonesia — the true figure is likely much higher.

Gambling News

by George Joseph

1 month ago 0 52

Asia’s iGaming Boom and Its Dark Side

Asia has rapidly emerged as one of the most dynamic frontiers for the global iGaming industry. From the glitzy casino hubs of Macau and Manila to mobile-first online betting platforms offering everything from sports wagering and poker to esports and live dealer games, the region’s gaming landscape is vast and diverse.

Fueled by a young, mobile-first population and advanced digital payment ecosystems, Asia’s gross gaming revenue (GGR) is conservatively estimated at $25–30 billion in 2025. However, due to widespread unregulated or offshore operations — particularly in China, India, and Indonesia — the true figure is likely much higher.

But alongside this growth lies a growing menace: fraud. While jurisdictions such as the Philippines and Cambodia have developed regulated B2B gaming hubs under clear licensing frameworks, much of Asia’s traffic comes from grey or black markets. In China, cross-border gambling is a criminal offense; India’s laws vary by state; and markets like Indonesia, Pakistan, and Bangladesh face both high demand and severe fraud exposure.

Fraud Rates Surging in Southeast Asia

Between 2022 and Q1 2024, global iGaming fraud rose 64% year-over-year, with fraudulent user sign-ups climbing from 0.4% to 1.1%. Asia’s rate grew faster than the global average.

According to Sumsub data, Asia continues to post the highest fraud rates in the global iGaming sector, hitting 3.49% in early 2025 — topping the charts for the second consecutive year.

Indonesia recorded the highest rate in Q1 2025 at 8.46%, followed by Bangladesh at 7.51%, Pakistan at 6.1%, and South Korea at 6.6%.
This means that in Indonesia, nearly 1 in 12 iGaming applicants were flagged as fraudulent in just one quarter.

In comparison, Europe’s fraud rate stood at 1.16%, while Latin America saw a sharp rise linked to regulatory shifts — with Brazil becoming a hotbed for deepfake-driven fraud.

The Rise of Deepfake and AI-Driven Fraud

Fraud tactics are becoming more sophisticated, increasingly powered by artificial intelligence. Between 2022 and 2023, deepfake attempts in gaming identity verification surged tenfold. By early 2024, deepfakes accounted for 0.79% of all detected fraud cases, up from 0.03% in 2022.

Document forgery remains rampant, with 78% of fraudulent verification attempts involving fake or altered IDs.
“Selfie mismatch” cases account for nearly 73% of suspicious submissions.

Significantly, fraud is now most common during deposit transactions, not withdrawals or account creation. In 2024, 41.9% of fraudulent activity occurred at the deposit stage — a sign that organized syndicates are exploiting transactional loopholes.

Time-of-day analysis reveals another pattern: most fraudulent activity happens between 4 a.m. and 8 a.m., when compliance teams are least active. Legitimate users, by contrast, typically register accounts around 6 p.m.

Severe Financial Impact

The financial toll is staggering. Around 83% of iGaming operators worldwide — including many in Asia — report increased fraud over the past year. Nearly half of compliance teams estimate revenue losses of 10% or more due to fraud.

Still, KYC and verification systems are improving. In Asia, legitimate user verification pass rates rose from 63.48% in 2023 to 88.87% in 2025. This shows that while scammers are getting smarter, operators are also becoming more adept at identifying them.

But Southeast Asia remains a fraud magnet — with hotspots like Cambodia, Laos, and Myanmar housing scam centers disguised as iGaming or POGO operations. NGO and law enforcement reports reveal that some scams involve trafficked victims forced into online fraud, “pig-butchering” schemes, and cryptocurrency scams. The UNODC estimates financial losses from such operations in East and Southeast Asia reached $18–37 billion in 2023 alone.

Regulators Responding

Governments are stepping up. In the Philippines, sweeping reforms are underway:

PAGCOR will transition from a dual operator-regulator to a purely regulatory agency by end-2025.
Over 40 state-run casinos are set to be privatized to remove conflicts of interest.
All licensed eGaming providers must install certified cybersecurity systems and integrate with third-party auditing tools, with non-compliance punishable by fines or license revocation.

In Thailand, a cabinet bill is under review to allow integrated resorts with casinos, following Singapore’s model. Each resort would require $280 million in capital and $2.8 billion in total investment. To curb problem gambling, entry restrictions for Thai citizens would include a $140 admission fee and proof of $1.4 million in bank deposits.

If approved, the bill could generate significant tourism revenue while establishing a formal legal framework for Thailand’s gaming industry.

Can Asia Rewrite the Script?

Asia remains the most valuable yet most challenging iGaming market. With a mix of well-regulated jurisdictions and ungoverned black markets, the region offers huge potential — but also high risk.

For operators, success hinges on: