On October 1, East Timor authorities revoked all existing online gambling licenses and banned the issuance of new ones. Authorities cited risks to national security, social stability, and international reputation as the reason for their decision.
On October 1, the government of Timor-Leste (East Timor) announced a sweeping decision to revoke all existing online gambling (iGaming) and sports betting licenses, banning the issuance of new ones. The licensing regime, which had been active only since April 2025, was deemed too risky, especially in light of evidence linking it to organized crime and threats to the country’s international reputation.
Authorities justified the abrupt reversal by pointing to “identified risks to the country’s security, social stability, economic integrity, and international reputation.” The decision was enacted via a Council of Ministers resolution, spearheaded by Cabinet Affairs Minister Ágio Pereira, which also dissolved ongoing licensing processes.
The regulatory framework had been in effect for just six months. During that time, East Timor granted its first license to Golden River Universe (GRU), a company expected to sub-license online gambling operations in a model resembling those used in Curaçao or other permissive offshore jurisdictions.
However, questions about GRU’s transparency and legitimacy arose almost immediately. Analysts and watchdogs noted the company and its affiliates, including Grand Dragon Lotaria (GDLotaria – Asian premier lottery provider), lacked a clear presence in corporate registries, prompting concern over who truly controlled the operations and how revenues were being managed.
The Southeast Asian nation government’s reversal followed the release of a United Nations Office on Drugs and Crime (UNODC) report warning that criminal syndicates had begun using local gaming licenses to launder money and run fraudulent schemes.
Authorities confirmed arrests of at least 10 individuals in Oecusse, East Timor’s only Special Administrative Region (SAR), accused of participating in illegal gambling and computer fraud. The report also suggested that as enforcement in other Southeast Asian markets tightened, criminal groups were relocating to jurisdictions with weaker oversight — a description that, until now, fit East Timor’s situation.
Some observers blasted the government’s initial decision to legalize online gambling at all. Experts compared East Timor’s model to the Philippines’ POGO system (Philippines Offshore Gaming Operators – POGOs), which has drawn global criticism for facilitating scams and organized crime.
Analysts called the move “naïve,” arguing that East Timor underestimated the administrative and enforcement challenges that come with regulating digital gambling platforms.
Officials have since pledged strict enforcement of the ban. A multi-agency committee involving law enforcement and ministerial bodies will oversee compliance, while violators could face severe penalties, including criminal prosecution.
East Timor is preparing to join the Association of Southeast Asian Nations (ASEAN) later in 2025 — a milestone that places heightened emphasis on governance, financial transparency, and international perception.
Government spokespersons framed the ban not as a setback, but as a “defensive step” to safeguard national integrity, stressing that protecting social and economic stability outweighs potential gaming tax revenues.
While East Timor’s iGaming sector never advanced beyond its early licensing phase, the sudden reversal sends a clear signal across the region: jurisdictions that legalize gambling without strong safeguards risk becoming targets for exploitation.
For global operators, the episode underscores how quickly an emerging market can close its doors when faced with reputational and security threats. As the government dismantles the framework, attention now turns to how East Timor will monitor compliance, recover any residual infrastructure, and rebuild investor confidence after one of the shortest-lived gambling legalization experiments in recent memory.
