Timor-Leste has brought an abrupt halt to gaming licensing, citing security concerns.

The Southeast Asian nation’s government approved a resolution to cancel licences granted to operate online games.

Politicians have also agreed to axe “the ongoing procedures for granting new licences and the prohibition of granting new licences”.

The resolution was presented by the Minister for Cabinet Affairs, Agio Pereira, due to “identified risks to the country’s security, social stability, economic integrity and international reputation, according to a cabinet statement reported by Plataforma Media.

Growing concerns were highlighted by a report by the United Nations Office on Drugs and Crime (UNODC), which revealed that criminal activity has been on the rise in the Timorese special administrative region of Oecussi.

The document was released following the arrest of 10 people on suspicion of involvement in illegal gambling and computer fraud in Oecussi.

Issues in Timor-Leste echo wider apprehension about iGaming businesses linked with Southeast Asia. In May, the Isle of Man warned it has “limited appetite” for engaging with businesses in the region due to risk factors related to its criminal landscape.

Timor-Leste fails to heed POGO warning

Timor-Leste is a nation of 1.4 million people and achieved independence from Indonesia in 2002.

In a bid to provide an economic boost, the country set out to establish itself as a regional hub for gaming licensing in Southeast Asia and create a ‘friendly global licensing jurisdiction’.

The country set up the Virtual Gaming Association (VGA) and awarded its first gaming licence to Golden River Universe in April.

During the process of setting up its gaming market, Timor-Leste’s neighbour, the Philippines, warned that it could be inviting issues experienced by Philippine Offshore Gaming Operations (POGOs), which were eventually expelled by President Ferndidand Marcos Jr due to their links with serious crime.

The Philippines’ Justice Secretary, Jesus Crispin Remulla, warned Timor-Leste officials during a state visit of the “potential socioeconomic and security challenges”.

Timor-Leste’s change of heart comes at a time when it appears to be set to join the Association of Southeast Asian Nations (ASEAN) bloc after applying for membership in 2011.

To try to reap the benefits of greater regional inclusion and economic integration, the region’s youngest nation must ensure that it shows a willingness to combat organised crime.

“As Timor-Leste prepares to join ASEAN, safeguarding its economic and digital systems against infiltration by organised crime will be critical to protect the security and prosperity of its citizens and people across the ASEAN region,” stated the UNDOC.