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The return of online sports betting and the risk of money laundering

2022-09-12 18:47:57Aktualitet SHKRUAR NGA MIMOZA PICARI
The return of online sports betting and the risk of money laundering
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In Albania, a debate has been opened after the sports federations' proposal for the return of online sports betting, which was banned by law more than 3 years ago. Their representatives argued that the initiative aims to finance sports from after-tax income. Official authorities have considered this proposal and are in the stage of public hearings, admitting that the ban on betting and gambling in January 2019, with the exception of casinos in 5-star hotels, encouraged their informal activity. Representatives of the opposition and experts think that this industry needs a deep discipline, since, as they say, money is laundered in it and many exponents of organized crime are involved.

In Albania, a debate has recently opened about the legalization of online sports betting. The proposal came from sports circles, which say their tax revenues could be used to fund sports in the country. The government has taken it into consideration and organized a public hearing on this issue. Online sports betting and gambling, with the exception of casinos in 5-star hotels, were banned by law in Albania with a decision three years ago. Their closure in January 2019 was argued by officials with the economic and social damage. which was causing the activity of over 4 thousand betting centers that existed in the country, and with the violation of many criteria such as distance from each other, or location near schools. The government said that at that time this industry laundered money and was financed in many cases by organized crime.

"This is an industry that annually turns over an average of 700 million euros" - said the prime minister of Albania in October 2018.

Although government leaders said at that time, that citizens spent about 700 million euros a year on gambling, according to official data, the annual turnover of this industry was 147 million euros or 21% of this amount, implying that the officials of supported that figure on suspicions of the circulation of money in informal ways. Experts and opposition representatives say today that the government was responsible for this situation as it allowed gambling monopoly, failed to manage them, and failed to stop them.

"At no time have gambling been banned or suspended. There may have been their concentration and high informality. There may have been operations going on and taking place under the government's nose. Criminal groups have continued the fight for control of this sector, but at no time has there been a complete suspension or ban on gambling. The only one that has suffered from this whole story has been the state budget, since the income has gone to informality", Jorida Tabaku, Chairwoman of the Integration Commission, said to the Voice of America.

According to official data, in the state budget the income from gambling in 2018, the last year before it was closed, was about 55 million euros, and the year after, after it was closed, the income fell by 43 million 400 thousand euros or about 80%. According to experts, their influence on the budget, although in conditions of high informality, was considerable, while over 7 thousand citizens also lost their jobs. Fidel Ylli, the president of the Albanian Olympic Committee, once a socialist deputy and voter of the decision to close all bets, says that at that time he voted in favor because of the chaos in this sector, while now he proposes that bets be opened only online. to be controlled by the state and the income to go to sports.

"Today, from the information I have, they play 1 and a half billion dollars of bets all over Albania, and black gambling. 400 million dollars of this goes to Singapore, and Majlazi. We need to set some standards. When countries like Italy or France have these bets, why not have them? That they come out and say 'this is nonsense etc'. The nonsense is that the state knows, the ministers know, the deputies know, that in the middle of the day they know who plays, they can play themselves and they don't close them. This worries me", said Fidel Ylli, President of the Albanian Olympic Committee, to the Voice of America.

The sports authorities expect that the revenues in the budget from online betting will be between 50 and 100 million euros. In the public hearing on the proposal for their reopening, Prime Minister Edi Rama considered the decision of three years ago to close all bets to be right, even though some international partners, as he said, were against it. But the head of the government admitted that, despite the efforts of the police, they have continued online in the dark, and that high-profile elements in the world of crime have been involved in them. He also assessed the demand for financing sports from the revenues after the legalization of online sports betting.

"In terms of the budget, this is definitely a reasonable intervention, because it removes the black economy and brings a significant amount to the state coffers. Why don't we take it out of the hands of those who do not pay any tax and feed evil", said Edi Rama, Prime Minister of Albania.

But experts are skeptical, as for many other initiatives, in the state's ability to control online betting activities, expressing strong doubts that informality and organized crime will be present again.

"I don't see the Prime Minister's reflection as negative, but time has shown that we failed to check the neighborhood store for fiscal evasion. Those who worked informally in the past, in the period when they were closed and today receive a license to continue online, will use both systems in parallel. The impact on the state coffers will be relatively low,'' Klodian Muço, an expert in the field of economics, told Voice of America.

Fatjona Mejdini, director of the global initiative against organized crime for South-Eastern Europe, says that the government is unclear about the proposal to reopen online betting.

"How will we return, what are the guarantees that will make us believe that the market will be disciplined. Three and a half years ago, when they were closed, it was said that this decision is being made for the benefit of Albanian families. Today, what are these structures that we have created to protect families, to fight gambling addiction, to reduce the social effect that gambling has? For all these questions, we have no answers from the government", said journalist Fatjona Mejdini for the Voice of America.

While representatives of the opposition are suspicious that the income from online betting will be used to finance sports, when in 9 years of the government of the left majority, according to them, investments in sports have been negligible.

"Where is the political morality today, will Albanian families not suffer today?" But those excuses that were used three years ago no longer apply today? It is shameful to use sport as an excuse to bring back a business, which in my opinion should have been handled in a completely different concept" - continued Jordia Tabaku, Chairman of the Parliamentary Committee on Integration.

After the first reflection, the government has not progressed in relation to the proposal of sports agencies, for the return of online sports betting. Experts raise concerns that the gambling sector in Albania is among the most problematic, not only in relation to informality but also with the involvement, to a high degree, of the underworld in it. The intervention of the authorities for the reformation of this industry is viewed with skepticism by them. The Voice of America contacted the press office next to the prime minister for more details on the government's guarantees for disciplining this market, but did not receive a response./ VOA


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