Is the Link Between Casinos and Crime an Unfair Assumption?

_{Macau casinos experience a rise in reported crime. Is there a link between casinos and criminal activity? (Image: The Yomiuri Shimbun)}

In Macau, there is a prevailing sentiment that the presence of casinos inevitably leads to an increase in crime. But is this assumption a fair characterisation of the situation?

Recent figures reported by the Macau Office of the Secretary for Security highlight a significant rise in gaming-related crime. A staggering 61.8 percent increase year-on-year in the first half of 2024 translates to 683 recorded incidents, a sharp jump from 422 last year.

Officials attribute this surge to a 'substantial increase' in visitor numbers and the gradual recovery of the gaming industry. In the first half of 2024, reports indicated a worrying 61.8% increase in such crimes, totalling 683 reported cases. While these numbers indicate a concerning trend, we must consider the broader context.

Leading Professor of Criminology Gives His Assessment of Claim

We asked a leading professor at Cardiff University, Michael Levi, for his thoughts on the claims.

He said, “There is some correlation between gambling and crime, namely that online casinos and offline betting intentionally stimulate us to gamble more, whether we can afford it or not. 

That said, many people who gamble do not commit crimes and manage to stop themselves, so it is partly a personality and domestic circumstances thing.

“In mainland China and elsewhere, some people commit frauds and accept/demand bribes to generate the money to gamble, but also to have a flashy lifestyle and impress their families and neighbors.

"This phenomena threatens the reputation of the Party and motivate “the Three-Antis” and other counter-corruption efforts.

“So, the urge to gamble in casinos and buy luxuries is counteracted by the fear of exposure and loss of position. Some people find that easier to do than others. It also depends on their life situation: the stress of family breakdown, overwork, etc. can mean that people experience and resist temptations differently at different times of their lives.”

Is Criminality a Natural Occurrence Wherever Crowds Gather?

The current visitor traffic in Macau has yet to reach the pre-pandemic levels of 2019 and the full tourism recovery is still underway. Furthermore, the Office of Wong Sio Chak acknowledges that the rise in visitors could enhance economic development while introducing heightened security concerns and illegal activities.

The situation prompts a critical question: does the concentration of large crowds in gaming venues necessarily correlate with a spike in criminal activity, or is it a natural occurrence in any bustling environment?

Do Casinos Uniquely Attract Gambling-Related Crime?

In exploring this further, we see that a notable 23.3 percent of crimes recorded in 2024 were classified as scams linked to casino environments, with issues such as unlicensed money exchange and usury also being prevalent. 

Still, these crimes are not unique to casinos. Similar instances can be observed in various crowded environments, such as marketplaces, concert venues, and sporting events, where large sums of money and diverse crowds congregate.

Prof. Levi points to the wealth of research on gambling and crime available: “There is now quite a lot of research on gambling and its social affects and correlations, which focus less on casinos than on things that ordinary people do in their neighbourhoods.

“Indebtedness through gambling can generate blackmail, and this can stimulate organised crime and frauds and money laundering via insider involvement from people in jobs that can facilitate crime. These include croupiers, money exchange bureaux, and indeed regulators and police themselves.”

Rise in Reporting of Crime Could be Social Progress, not Social Decay

“The increase in Suspicious Activity Reports is a bit of a red herring and may not be related to any genuine increase in money laundering; better staff training and talks by FIU staff can all increase the reporting. But they can be real—you just cannot deduce that from the statistics. 

"A rise in reports can be an indicator of social progress rather than social decay. This also applies to a rise in reporting of frauds and sexual and physical attacks.

“In short, gambling can stimulate indebtedness, and this sometimes leads to crimes of several kinds. It can also shift expenditure from other licit and illicit things and have no net effect on crime, unless it leads to family breakdown, involvement in drugs, etc.

“Sometimes it is the ‘bad company’ some people keep that also gives them networks that can expand their criminality, whether voluntary or not. AML measures in casinos try to mitigate that, but they seldom focus on source of funds and source of wealth—more on identification of gamblers and crude laundering like cashing in chips that have been bought for cash, giving a licit source to pay into banks.

“The biggest danger is when crooks’ own casinos and other gambling firms conspire to launder much larger sums. This has happened too.”

Bigger Picture Beyond Assumptions

As Macau navigates its evolving gaming landscape, it is crucial to question whether labelling an increase in crime as a direct consequence of casinos is simply a reflection of public perception and societal tendencies rather than an empirical reality. After all, crime can flourish in any setting where human behaviour is complex and cash flows significant.

Professor Levi concluded by saying, "I agree with Prof. Godinho that we should not criminalise everything and even where we do, there are a range of policy instruments that we can and should use to avoid overcriminalisation and the costs associated with it."

Ultimately, the relationship between casinos and crime warrants a deeper examination beyond surface-level assumptions, for the truth may be that crime thrives not because of casinos themselves but because of the larger social dynamics in play when groups of people gather.

Professor Michael Levi has an international reputation for excellence in both fundamental and policy-oriented research on money laundering, corruption, cybercrimes, fraud, transnational organised crime, and white-collar crimes.

This is reflected in major lifetime achievement awards from the British, European, and American Societies of Criminology, the Lifetime Tackling Economic Crime Award, and the Al Thani Rule of Law Committee/UNODC Corruption Research and Education prize.

He has played an advisory role both internationally with the European Commission and Parliament, Europol, the Council of Europe, the UN, and the World Economic Forum and nationally with the UK Home Office and Cabinet Office, and with the Crime Statistics Advisory Committee.