Illegal gambling in İstanbul generates an estimated 400 billion lira ($11.6 billion) in black money every year, the T24 news website reported on Friday, citing a report by Turkey’s  Financial Crime Investigation Authority (MASAK).

Gambling in Turkey is strictly regulated. Turkey banned casinos in 1998 and non-state online gambling was also banned in 2006. A state lottery (Milli Piyango) remains as well as some betting services and limited legal online gambling. Illegal gambling continues, however, particularly related to professional football.

The MASAK report sheds light on the extent of illegal betting and gambling operations in Turkey, describing them as organized networks using digital platforms and proxy bank accounts. These activities are a major source of black money in the country and contribute to what the authorities describe as a huge “dark” economy.

According to MASAK, illegal betting is predominantly conducted online, with websites that require advanced systems to operate offering live betting. Once a website is set up, organizers recruit 10 to 60 people to manage various aspects of the operation, including live support, fundraising and distribution.

The report highlights the reliance on vulnerable groups, such as students, the unemployed and low-income workers, whose bank accounts are often used as intermediaries for money transfers. These individuals are either compensated with small monthly payments or forced to open other accounts for illegal activities.

Funds are deposited into these accounts without them being present in person via ATMs, internet banking or mobile banking, making the transfers difficult to trace.

MASAK found that the funds are often withdrawn in cash or transferred to other accounts, making it even more difficult to track the flow of money. In many cases, the accounts are changed or closed to avoid detection, making it difficult for authorities to freeze or seize the funds associated with illegal gambling.

In İstanbul alone, the scale of the problem is staggering. An estimated 400 billion lira in black money is associated with illegal gambling and betting every year.

The MASAK report also warns of the international impact of illegal gambling in Turkey.

The international Financial Action Task Force recently removed Turkey from its “grey list,” a position it had achieved over concerns about money laundering and terrorist financing, citing “significant progress.”

However, MASAK warned that failure to tackle illegal gambling and related black money could lead to Turkey being put back on the list, which could damage the country’s financial standing and international credibility.

The legal framework to combat illegal gambling exists in Turkish law, in particular through the Law on the Regulation of Betting on Soccer and Other Sports Games (Law No. 7258) and Article 228 of the Turkish Penal Code, which criminalizes the facilitation of gambling. In addition, an amendment to the Law on the Prevention of Laundering the Proceeds of Crime authorizes the ministry of finance to suspend transactions on suspicious accounts for up to seven days.

Despite these measures, enforcement remains a challenge. The MASAK report notes that funds associated with illegal gambling must be seized immediately to prevent withdrawal or transfer. Delays in freezing accounts often result in the money being untraceable as investigations progress, limiting the effectiveness of law enforcement.

The organizers of illegal gambling use several strategies to avoid detection. These include instructing participants not to use terms such as “bet” or “gambling” in transaction descriptions. However, some players include such terms in their transfers, providing the authorities with evidence of illegal activity.

The report emphasizes that combating illegal gambling requires swift legal action, increased monitoring of financial transactions and public awareness campaigns to reduce involvement in such activities.

Recently, the Turkish Football Federation (TFF) introduced new regulations to crack down on illegal betting advertisements. According to the TFF, clubs found in violation of the new rules will face fines and, in cases of repeated offenses, the deduction of points.

The global scale of the illegal betting market is enormous, with the United Nations Office on Drugs and Crime estimating its worth at $1.8 trillion. In Turkey alone, the sector is projected to exceed 100 billion lira, according to the Financial Crimes Investigation Board, the Hürriyet daily news website reported last week.