FIAU Flags Alleged Underground Gambling Ring in Malta

A high-stakes gambling network is allegedly operating in plain sight across Malta, yet authorities have remained strikingly silent.

Despite receiving multiple intelligence reports from the Financial Intelligence Analysis Unit (FIAU) pointing to possible illegal betting, money laundering, and unlicensed lotto operations, law enforcement appears inactive.

The scandal exposes potential gaps in Malta’s regulatory and criminal enforcement systems, just as the country works to rebuild its international reputation post-Grey List.

Here’s an in-depth look at what the FIAU discovered, how enforcement has (or hasn’t) responded, and what this means for Malta’s gaming sector.

Shadow Bets: Malta Faces Scrutiny Over Alleged Underground Gambling Network

3 Key Points

• FIAU reports since 2020 point to unlicensed lotto, cash-based betting, and laundering networks.
• Despite clear intelligence, no arrests or public prosecutions have been announced.
• Authorities remain silent while alleged network figures display unexplained wealth.

FIAU Uncovers Malta’s Alleged Underground Gambling Economy

A report by The Shift News reveals troubling details of what appears to be a systemic illegal gambling network operating across Malta.

The FIAU launched investigations as early as 2020, following the arrest of Melvin Theuma, the intermediary in the Daphne Caruana Galizia assassination case. Theuma, already linked to illegal lottery operations, became a key lead in uncovering financial irregularities and gambling-related money laundering.

Subsequent intelligence reports in 2023 and 2024 were forwarded to the Financial Crimes and Investigations Department (FCID) of the Malta Police Force. Despite the volume and depth of the findings, no enforcement action has been announced.

Cash Betting, High-End Assets, and a Central Operator

According to the report, the FIAU identified a self-employed individual in Żejtun as a central figure in the alleged underground network.

Key findings include:

• Unlicensed betting slips and printed receipts handed to bettors.
• Cash-only transactions reportedly reaching tens of thousands of euros weekly.
• Operations allegedly conducted from a villa and a premises above a bar, suspiciously located near a police station.
• The use of multiple burner phones to direct operations and coordinate cash collection.

Moreover, the individuals allegedly connected to the network were found to own:

• Luxury vehicles
• High-end villas and properties
• Large sums of undeclared income

This pattern suggests textbook money laundering typologies often seen in jurisdictions with lax enforcement and high cash economies.

No Action, No Transparency

The FIAU is said to have shared its intelligence not only with domestic enforcement agencies but also with international financial institutions for enhanced due diligence.

Still, official statements remain elusive.

When contacted by The Shift, neither Police Commissioner Angelo Gafà nor Assistant Commissioner Fabian Fleri responded. A police spokesperson offered only:

“The police are not in a position to confirm or deny such information.”

This response, while procedurally cautious, fuels public frustration over regulatory inaction and casts doubt on the government’s commitment to AML enforcement.

Malta’s Regulatory Image at Risk — Again

Malta only recently exited the FATF Grey List for AML concerns. The emergence of this scandal — especially without visible enforcement — threatens to reverse the country’s progress.

The Malta Gaming Authority (MGA), often held as a global regulatory benchmark, could face renewed pressure if the domestic land-based or informal sectors remain unchecked.

In contrast to its globally respected online licensees, Malta’s domestic oversight mechanisms appear vulnerable to exploitation by organized networks, especially those with political or criminal ties.

Malta Must Address Enforcement Gaps to Protect Its Reputation

The FIAU’s intelligence paints a clear picture of illicit betting and possible laundering networks operating under local authorities’ noses.

Yet the absence of police raids, asset freezes, or public charges raises serious concerns about institutional follow-through.

If Malta hopes to maintain its regulatory credibility in Europe’s gambling landscape, it must demonstrate that enforcement is not selective or politically insulated.

The longer this underground network remains unchallenged, the greater the damage to Malta’s gaming brand — and the greater the risk of international scrutiny.

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