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Recently, Vietnamese authorities carried out two major operations—a billion-dollar money laundering ring and a large-scale illicit sports betting ring—and showed that the nation is committed to preventing financial crimes and gambling-related offenses.
Illegal Betting Network Busted
In Dong Nai Province, police uncovered an illegal online sports betting operation led by Tran Trung Hieu, also known as Hieu De. Active since 2023, this network generated approximately VND1.2 trillion ($50.5 million) in betting revenue. The raid resulted in the arrest of Hieu De and 15 other individuals, as well as the seizure of over VND1.1 billion in cash.
Investigators revealed that the betting ring primarily focused on football and operated on an international scale, employing advanced technology to evade detection. Despite Vietnam’s ban on online gambling, the black market remains extensive, with estimates valuing it at VND250.6 trillion. Football betting dominates this underground industry, driven by high demand and easy access to illegal platforms. Legal sports betting in Vietnam is restricted to specific land-based casinos, governed by strict regulations, which has further fueled the black market.
Authorities are continuing their investigation to identify additional suspects and trace the origins of the laundered and illegally wagered funds.
Da Nang’s Largest Money Laundering Case
In a separate operation on January 23, police in Da Nang announced the arrest of five individuals involved in a sophisticated money laundering scheme. Between 2022 and 2024, the network funneled approximately VND30 trillion ($1.2 billion) in illicit funds into Vietnam, making it the largest money laundering case in Da Nang’s history and rivaling Singapore’s financial scandal from two years ago.
The operation involved 187 fraudulent businesses and 600 corporate bank accounts created using fake identification documents, counterfeit business registration certificates, and falsified bank seals. These accounts had been used for money laundering amongst other fraud actions from offshore gambling operations; among those arrested were people connected with banks that played vital roles in such money laundering illegal activities.
This discovery underscores Vietnam’s intensified efforts to strengthen financial crime prevention and improve transparency in its financial systems.
Calls for Sports Betting Reform
The crackdowns on the illegal betting operations also epitomize the deficiencies of current sports betting under the Decree 6 of 2017 in Vietnam. Whereas the law does allow legal wagering on sports, it does under very strict conditions, where one has to bet only about VND1 million daily, and the bets are confined to certain provinces. A ban on online and mobile betting has driven many bettors into the black market.
Critics, including industry experts, argue that Decree 6 is outdated and overly restrictive. At a November 2024 conference organized by the Vietnam Association of Foreign Invested Enterprises (VAFIE), calls for reform were renewed. Participants emphasized the need for modernized regulations to align with current betting trends and consumer behavior. Recommendations for reforms are expected to be submitted to the Ministry of Finance later this year.
Strengthening Financial Crime Prevention Laws
These recent operations are part of the broader efforts by Vietnam in combating financial crimes. In March 2023, the Anti-Money Laundering Law 2022 came into effect, putting new compliance requirements on financial institutions, including gaming-related entities. In July 2024, the Law on Credit Institutions was enacted to enhance transparency and risk management in the banking sector.
Vietnam has also begun targeting other high-risk sectors, including real estate, with new regulations introduced in January 2025. These legislative measures aim to fortify the country’s defenses against financial crime and bolster its regulatory frameworks.
Recent crackdowns and reforms illustrate the determination of Vietnam to meet illegal gambling and money laundering challenges while it also paves the way for potential updates to its sports betting laws.
Source: Next.io
