Eswatini’s Royal Eswatini Police Service has expanded its investigation into suspected illegal online gambling operations into an international fraud and organised crime case, according to an affidavit filed with the High Court in August 2026. The development matters for the country’s gambling market because it has intensified scrutiny of an incomplete licensing framework, prompted calls to halt licence issuance and raised concerns about financial-crime controls linked to operators serving customers abroad.
Detective Constable Ntokozo Dlamini of the police Organised Crime Unit told the court that material extracted from seized Telegram and WhatsApp accounts indicated alleged links between the network under investigation and senior political figures, police personnel and immigration officials. The affidavit does not establish criminal liability for any individuals named or referred to in the recovered communications, but it has broadened the scope of the inquiry beyond gambling and immigration offences.
Police said they were examining more than 400 electronic devices with assistance from INTERPOL. The international police organisation, in its account of a related Eswatini operation conducted under Operation First Light 2026, reported that authorities had seized 240 devices and arrested 82 people in the action it highlighted. The differing totals appear to relate to separate stages or definitions of the wider enforcement activity, which has included raids and subsequent investigations across multiple locations.
The initial police action began in March 2026 as a domestic enforcement operation targeting suspected unlicensed online gambling sites and immigration breaches in and around the capital, Mbabane, as well as the nearby Ezulwini area. Officers arrested 146 foreign nationals during that phase, including people from China, Taiwan, Indonesia, Cambodia and Brazil, according to the authorities.
Police initially reported the seizure of 313 electronic devices. The suspects face allegations under Eswatini’s Gaming Control Act, the Money Laundering and Financing of Terrorism (Prevention) Act and the Immigration Act. However, the criminal proceedings have so far produced immigration-related convictions rather than gambling convictions for a substantial group of those detained.
In June, 84 foreign nationals were convicted of immigration offences. Principal Magistrate Fikile Nhlabatsi imposed six-month prison terms with an alternative fine of E500, equivalent to about $30. The outcome has drawn criticism in parliament, where lawmakers have questioned whether the current penalty structure is sufficient to deter organised groups that may have access to substantial cross-border proceeds.
Senate Deputy President Ndumiso Mdluli raised the issue during a mid-August Senate sitting, asking Prime Minister Russell Mmiso Dlamini to examine whether politicians may have rented accommodation to foreign nationals connected to illegal online gambling without knowing the nature of their activities. Mdluli also argued that limited financial penalties could allow offenders to settle fines and resume unlawful activity.
The investigation’s expansion rests largely on the forensic review of devices and digital records recovered during the raids. In his affidavit, Detective Constable Dlamini said investigators had identified evidence of what they believe was a coordinated enterprise operating unlicensed online gambling platforms from Eswatini while targeting victims in Brazil and India.
Authorities allege that the network consolidated proceeds from its activities, converted funds principally into the stablecoin USDT, and moved them through financial institutions in Abu Dhabi and the United States before returning money to Eswatini. The allegations will likely place particular attention on anti-money laundering obligations, transaction monitoring and the ability of domestic institutions to identify payments linked to offshore gambling and fraud activity.
Cross-border payment channels have become an increasingly important regulatory issue for gambling jurisdictions, especially where locally based businesses may offer services to customers in countries where they do not hold licences. The Eswatini case illustrates the compliance challenge facing smaller markets that may not yet have fully implemented rules for online gambling, customer verification, source-of-funds checks, remote monitoring and operator reporting.
A major part of the police case concerns alleged impersonation fraud directed at Brazilian citizens. Investigators said they discovered a facility at the Castle Hotel in Mbabane that appeared to have been arranged to resemble a Brazilian police detention site. Items reportedly found there included Brazilian police uniforms, a bulletproof vest, five radios and a Brazilian Federal Police badge.
According to investigators, members of the suspected network used video calls to present themselves as Brazilian Federal Police officers. Targets were allegedly told they were subject to criminal investigations, pressured to enter purported confidentiality agreements and instructed to send money for safekeeping to accounts represented as belonging to the Brazilian Central Bank.
INTERPOL said approximately 40 Brazilian citizens had been defrauded in connection with the operation. Its Operational Support Team was deployed to Eswatini as part of Operation First Light 2026, an international initiative which INTERPOL said led to the interception of illicit assets valued at $293m across 97 countries.
The alleged use of premises in Eswatini to conduct fraud against overseas victims adds a significant dimension to the case. While the original raids focused on gambling and immigration compliance, the international fraud allegations could require coordination between law enforcement agencies, financial intelligence bodies and prosecutors in several jurisdictions. It could also complicate efforts to distinguish between legitimate gambling activity, unlicensed remote operations and broader criminal conduct using gambling-related infrastructure.
The Castle Hotel was identified by police as one of the suspected network’s principal operational centres. The authorities have not publicly set out the full ownership or management arrangements surrounding every premises searched, and the investigation remains ongoing. As a result, the available court material should be treated as allegations under active investigation rather than final findings.
The case has also renewed pressure on Eswatini’s government to address gaps in the legal architecture governing gambling. The Gaming Control Act of 2022 is in force, but implementing regulations have not yet been completed. Without detailed regulations, questions remain over the operational requirements for licensees, supervisory powers, technical standards, enforcement processes and measures intended to prevent money laundering and criminal infiltration.
Members of the House of Assembly had already urged the government in December 2025 to stop issuing gambling licences until regulations were finalised and presented to parliament. That concern pre-dated the March raids, but the police investigation has increased the political significance of the issue.
The Ministry of Tourism and Environmental Affairs has since paused new licence applications and renewed only four existing licences, subject to strict oversight. The status of those licences and the exact conditions attached to their renewal have not been detailed in the court material cited by police. Nevertheless, the decision signals that the government is seeking to limit market access while the regulatory position is reviewed.
National Commissioner of Police Vusi Manoma Masango went further in a memorandum dated 2 June to the principal secretary at the Ministry of Tourism and Environmental Affairs. The letter recommended a temporary suspension of gambling licence issuance until the police investigation had concluded.
The memorandum was copied to the Ministry of Home Affairs, the attorney general and the Eswatini Financial Intelligence Unit. Masango warned that issuing licences while an active organised crime investigation was under way could create opportunities for criminal groups to establish or maintain access to the sector.
His intervention reflects a broader policy tension. A licensing system can provide a route for regulatory oversight and tax collection, but issuing permissions before detailed controls are in place may expose the jurisdiction to reputational and compliance risks. Conversely, a prolonged halt could restrict legitimate businesses seeking clarity on market entry and delay the development of a regulated domestic gambling sector.
The Ministry of Finance has told the High Court that an unregulated environment could expose Eswatini to international financial-crime grey-listing risks. Such concerns are commercially important because deficiencies in anti-money laundering systems can affect correspondent banking relationships, foreign investment assessments and the cost of cross-border financial services.
Masango has said publicly that police would not grant protection to anyone implicated because of rank or political influence. His comments followed reports that messages recovered from devices contained references to public officials. Any cases involving officials would require evidence capable of meeting criminal standards, and no judicial determination on those allegations has been reported.
For licensed and prospective operators, the investigation may lead to a more demanding compliance environment once regulations are introduced. Potential requirements could include beneficial ownership disclosure, enhanced due diligence on investors and suppliers, data retention rules, suspicious transaction reporting and controls over foreign customer acquisition. The government has not yet published a final regulatory package, so the precise obligations remain uncertain.
Players and overseas customers could also be affected if enforcement action results in the closure of platforms operating without licences or if payment flows are blocked during financial-crime inquiries. The investigation has highlighted the difficulty consumers face in distinguishing regulated gambling services from operations that may use familiar payment tools, social media applications and apparently legitimate customer-contact methods.
Police forensic work on the seized devices remains under way, and the Royal Eswatini Police Service has said it will submit a comprehensive report once the examination is complete. The government must also decide whether to formally maintain the licence pause, complete the Gaming Control Act regulations and set an enforcement timetable. Market participants, financial institutions and international law enforcement agencies will be watching for the findings of the investigation and any resulting changes to Eswatini’s licensing and compliance regime.
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