Deputy Editor
Turkish black market gambling operators have reportedly landed on an unusual response to an ongoing government crackdown. According to a recent report, they’re moving money the old-fashioned way, having couriers drive physical cash via motorcycle.
A Hurriyet Daily News Report out of Istanbul described the current workflow of moving illicit gambling funds:
Betting may take place on digital platforms, but the financial system behind it relies on a tightly organized network of intermediaries and hand-delivered cash to reduce the risk of detection. High-value bank transfers are now seen as too risky, leading organizers to shift money circulation entirely offline through couriers.
In some ways, the situation calls back to the heyday of online poker in the United States when processing payments was a major obstacle. It also bears resemblance to the days of bookie-run sportsbooks, before legal online betting became more prevalent.
Turkey Looks to Intensify Enforcement of Gambling Law
Turkey’s gambling economy is largely underground. There is a state-run lottery, and the government operates a single-entity sportsbook monopoly. Betting on horse races is also allowed.
Outside of that, betting takes place on black market sites.
The Hurriyet Daily News source described a similar setup to the ones found in many countries with underground gambling markets. Agents provide access to gambling platforms and earn commissions from players. They settle accounts and provide the equivalent of promos, giving players “rakeback” on their losses at rates up to 40%.
Turkey’s government has been spurred to combat illegal gambling after a wave of recent scandals and unfavorable headlines. Most prominently, a betting scandal involving players, referees, and club officials has resulted in more than 1,000 arrests to date.
Turkish President Recep Erdogan pledged to crack down on illegal gambling. He lumped illegal betting in with drugs, alcohol, and cigarettes in January and said the harm from it has exceeded terrorism. He promised to eradicate illegal betting “by whatever means necessary.”
Illicit Gambling Economy in Turkey Takes a Black Friday-Like Turn
As part of the ongoing government crackdown on gambling, Turkey is scrutinizing payment processing.
Poker players are familiar with that particular enforcement model. After the Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, some poker operators left the United States. Others kept serving U.S. customers but used shady workarounds, such as mislabeling account deposits as consumer goods, to avoid raising suspicion.
The issue of electronic payment methods leaving a paper trail has apparently become problematic for Turkish operators.
These days, cryptocurrency is a popular method of movement for shady funds. Turkey has already begun tightening up controls there. The government recently ordered a freeze on $544 million in digital assets allegedly linked to a high-profile black-market money launderer.
Many modern U.S.-facing bookies contract through offshore platforms and use electronic money transfer services to settle. However, bookies are running into issues there as well. Platforms such as Venmo are on alert. They often freeze accounts flagged for suspicious activity without warning.
Undoubtedly, Turkish black market operators are aware of these risks. Hence, they’re apparently turning the gambling economy back to the proverbial Stone Age in a sense, moving money via physical couriers jetting around the country on motorbikes.
Image credit: Tesla314/Flickr (license)
