Poker Writer
Taiwan has cracked down on widespread illegal online gambling and money laundering, with prosecutors indicting 35 individuals in a bust. These individuals channeled close to $1 billion in illicit gambling funds through East Asian payment processors.
The epicenter of the large-scale illegal gambling operation was Shiang Yuan Cafe, a Hong Kong-style diner in Taipei. A man identified only by his surname, “Lo,” was alleged to be the ringleader. Prosecutors charged Lo with multiple crimes, including money laundering, organized crime, and illegal online gambling. He could be facing a prison sentence of nine years and six months.
The scheme dates back to 2020, after Lo purchased the source code for a payment platform system. Schemers branded the services as HeroPay and MatchPay. Those services intentionally obscured the flow of gambling funds to make it hard to trace and concealed their origins. Because of that, the funds bypassed scrutiny for years.
In 2022, Lo’s gambling empire expanded with the creation of Rich 11, which authorities say offered everything from baccarat to slot and sports bets. HeroPay acted as the primary payment service.
Lo opened another restaurant in Taipei, Dongyin Quick Knifeman. It acted as another front for illegal gambling in the same way as Shiang Yuan Cafe.
Prosecutors indicted Lo along with 34 others. One of the others indicted with Lo was a woman known as “Huang” who handled the finances and administrative work. She rented office space under the guise of the restaurant to be the base of the operation. Huang is facing a prison sentence of up to six years.
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Taiwan Cracking Down on Online Gambling
Taiwan has recently cracked down on online gambling in several ways. A prominent case in October saw three Taiwanese league baseball players sanctioned for online gambling, including online poker.
Legalized sports betting in Taiwan is heavily regulated and limited, leading many to seek out illegal means to expand their betting activities.
Taiwanese legislators passed amendments in June 2025 imposing hefty prison sentences for anyone who manipulates sports betting outcomes. The sentences can be anywhere from seven years to life.
