Online betting scams on the rise
Growing trend of unregulated online betting scams targeting unsuspecting individuals has become a scourge attracting the attention of the Financial Intelligence Agency (FIA) and Gambling Authority. According to the two institutions, the online betting or investment opportunities advertised through social media have swindled people of hard earned income.
“Investigations and monitoring conducted by both institutions have revealed that several online betting platforms operate without a licence from the Gambling Authority. “These platforms often disguise as legitimate betting or investment opportunities, luring members of the public to deposit money into personal or third-party bank accounts as well as mobile and digital payment platforms,” reads a joint statement from FIA and GA.
Mushrooming of the illegal betting platform is growing on the backdrop of the legally permitted gambling. “These unregulated activities have taken the form of crowd sourcing or pooling of funds, where multiple individuals contribute money into a single account, allegedly for betting purposes. “Such arrangements expose participants to a high risk of financial loss and possible involvement in fraudulent schemes, money laundering and even terrorist financing activities.'
The authorities have advised the public to be on high alert and to watch out for red flags such as online betting or investment opportunities advertised through social media platforms by unlicensed persons. In addition, poor online footprint such as new domains and social media pages with very few followers which may suggest a freshly made account and unrealistic promises with claims such as ‘95 percent success rate’ or ‘guaranteed returns’. Meanwhile, the Gambling Authority (GA) and University of Botswana academics have found that the scale of illegal betting has reached P500m, totalling twice the size of the Botswana’s legitimate betting market.
The findings were presented by the GA’s acting Chief Executive Officer, Moruntshi Kemorwale, at the Botswana Economic Forum, where he highlighted the rapid expansion of the country's gambling industry and the need to crack down on unlicensed betting operators.