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Just this past week, Turkish authorities dismantled an illegal betting and money laundering network with a transaction volume of ₺2.6 billion ($65 million), following a coordinated operation across 12 provinces.
Aside from the destructive social impact of such illicit activities, their significant economic consequences are becoming unbearable.
Over the last years, illegal betting has grown into one of Türkiye’s largest underground financial activities, with direct implications for the country’s banking system and international standing.
A November 2024 report by the Financial Crimes Investigation Board (MASAK) sheds light on the scale and mechanics of this shadow economy, examining illegal betting as a key driver of money laundering operations across the country.
The report reveals that in Istanbul alone, illegal betting and gambling generate around ₺400 billion ($10 billion) in laundered money, a figure that highlights just how entrenched these networks have become in Türkiye’s financial ecosystem.
The practice ranks among the biggest sources of money laundering in the country, feeding a system that is notoriously hard to regulate or track.
MASAK’s findings confirm that illegal betting in Türkiye is overwhelmingly an online business, with 95% of transactions taking place over the internet. This digital footprint has made it easier for organizers to avoid regulatory oversight and shift operations across platforms.
One of the most revealing aspects of the report is the sheer scale of the laundering operations behind illegal betting. Organizers reportedly use an average of 3,000 different bank accounts every month, a tactic designed to obscure money trails and complicate investigations.
These aren’t accounts opened by scheme leaders themselves. Instead, 70% of them belong to students, unemployed people, or minimum-wage workers, who are compensated with monthly payments between ₺5,000 and ₺20,000 in exchange for lending their names and banking details.
Even with these layers of separation, betting networks rarely rely on the same accounts for long. According to the public auditor, 85% of these accounts are replaced every three months, making long-term tracking difficult for authorities.
The rapid turnover isn’t limited to bank accounts. The average lifespan of an account used in illegal betting operations is around 45 days, with organizers frequently shifting resources and reorganizing their financial channels to stay ahead of enforcement.
While illegal betting has spread across Türkiye, MASAK’s report shows it is heavily concentrated in a handful of major cities. Istanbul accounts for the largest share of the activity, with nearly four out of every ten illegal bets traced back to the city. Ankara follows with around one-fifth of operations, while Izmir, Adana, and Bursa make up much of the rest.
On average, an illegal betting operation involves 27 people, covering various tasks from recruiting account holders to handling the laundering process.
These small but agile groups manage to move significant sums of money within Türkiye’s banking system, largely unchecked.
Under Türkiye’s Law No. 7258, authorities have the right to seize funds suspected of being linked to illegal betting for seven days. However, MASAK warns that this window often proves ineffective.
By the time funds are frozen, up to 60% of the money has typically been withdrawn or rerouted, blunting the impact of enforcement actions.
MASAK’s report calls for tighter regulations and stronger oversight tools, suggesting that current laws fall short in addressing the financial risks posed by illegal betting and gambling networks.
Beyond Türkiye’s borders, the report signals potential fallout in the international financial arena. The Financial Action Task Force (FATF), the OECD-established body monitoring global anti-money laundering efforts, may reconsider placing Türkiye back on its “grey list” if illegal betting-driven laundering remains unchecked.
The international watchdog just took the country off its “grey list” last year after three years of monitoring.
Such a move would subject Türkiye to increased scrutiny from foreign banks and investors, a scenario Ankara has sought to avoid after being removed from the list in the past.
MASAK’s data points to a dramatic expansion of illegal betting in Türkiye over recent years. The market has grown by 280% in the past five years, now reaching an estimated annual volume of 1 trillion Turkish lira.
Without tighter enforcement and effective legal reforms, the growth of illegal betting threatens not only Türkiye’s financial stability but also its reputation within the global financial system.
The risks outlined in the report reflect a broader challenge for regulators attempting to tackle a fast-moving, digitally driven underground economy.
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