The Royal Eswatini Police Service (REPS) has told the High Court that what started as a domestic illegal gambling case has grown into an international fraud and organised crime investigation. In an affidavit filed by Detective Constable Ntokozo Dlamini of the Organised Crime Unit, police allege that material recovered from seized phones and laptops points to links between the criminal network and senior politicians, police and immigration officials. More than 400 electronic devices are now under forensic examination, with support from INTERPOL. The case ties Eswatini to a scam that targeted victims in Brazil and India and moved proceeds through Abu Dhabi and the United States.
What the Eswatini Probe Means for Regulators and Investors
The investigation has moved well beyond unlicensed gambling. It now touches immigration control, financial-crime exposure and the credibility of Eswatini’s licensing regime. For anyone watching Southern African regulatory risk, the details below matter.
- Scope has widened sharply. A March 2026 gambling raid is now a cross-border fraud case spanning at least four continents, with cryptocurrency laundering at its core.
- Licensing is frozen in practice. The Ministry of Tourism and Environmental Affairs has paused new applications and renewed only four existing licences under strict oversight.
- The Ministry of Finance has warned the High Court that an unregulated environment risks landing Eswatini on international financial-crime grey lists.
- Political exposure is real. Court papers allege links to senior officials, and the National Commissioner has publicly ruled out immunity for anyone implicated.
- Penalties remain weak. Most convictions so far carried fines of just E500 ($30), a gap lawmakers have flagged as inadequate deterrence.
A Gambling Raid That Kept Growing
It began small, or at least it looked that way. In March 2026, REPS raided several sites in and around Mbabane and arrested 146 foreign nationals, many of them Chinese, Taiwanese, Indonesian, Cambodian and Brazilian. Officers seized 313 electronic devices in that first sweep. The suspects were charged under the Gaming Control Act, the Money Laundering and Financing of Terrorism (Prevention) Act and the Immigration Act.
Then forensics changed the picture. According to Detective Constable Dlamini, extracted data revealed an organised operation running unlicensed online gambling platforms from Eswatini while targeting victims abroad. Investigators say the syndicate pooled its takings, converted them into cryptocurrency (chiefly USDT), and routed the funds through financial institutions in Abu Dhabi and the United States before cycling them back into Eswatini.
Coordinated raids in Mbabane and Ezulwini later in 2026 hit premises including the Castle Hotel in Mbabane, which police describe as one of the syndicate’s principal command centres.
Fake Brazilian Police and Coerced Contracts
The Castle Hotel yielded more than servers and SIM cards. Investigators found what appeared to be a fake Brazilian police holding facility, complete with police uniforms, a bulletproof vest, five communication radios and a Brazilian Federal Police badge. Members of the network posed as federal officers during video calls, told targets they were under criminal investigation, and pressured them to sign fraudulent “confidentiality agreements.”
Victims were then told to transfer money to accounts supposedly held by the Brazilian Central Bank for “safekeeping.” It is impersonation dressed up as due process. the international police coordination body INTERPOL identified roughly 40 Brazilian citizens defrauded by the operation and deployed its Operational Support Team to Eswatini under Operation First Light 2026, an action that intercepted illicit assets worth US$293 million across 97 countries.
Two Sets of Numbers, One Case
The figures reported by REPS and by INTERPOL do not line up neatly, which reflects how the case has been counted at different stages.
| Metric | REPS / court filings | INTERPOL (Operation First Light 2026) |
|---|---|---|
| Devices seized | 313 in first phase; 400+ now under forensic examination | 240 in the highlighted Eswatini action |
| Arrests | 146 foreign nationals in March 2026 | 82 people arrested in the specific Eswatini operation |
| Victims identified | Targets in Brazil and India | Approximately 40 Brazilian citizens |
| Assets | Proceeds converted to USDT, routed via Abu Dhabi and the US before returning to Eswatini | US$293 million intercepted across 97 countries |
Police Push for a Licence Freeze
Pressure on the licensing regime has grown alongside the criminal case. On 2 June 2026, National Commissioner of Police Vusi Manoma Masango wrote to the principal secretary at the Ministry of Tourism and Environmental Affairs recommending a temporary suspension of gambling licence issuance until the investigation concludes. The memorandum, copied to home affairs, the attorney general and the Eswatini Financial Intelligence Unit, warned that continuing to issue licences during an active probe “may inadvertently create opportunities for further infiltration by criminal elements.”
Masango has also drawn a line publicly. “No individual is above the law, regardless of rank or political influence and we do not fear them,” he told the Times of Eswatini on 3 August. Whether that resolve survives contact with the names in the affidavit is the question nobody in Mbabane is answering yet.
Parliament Enters the Frame
The case has reached the Senate. In mid-August, Senate Deputy President Ndumiso Mdluli asked Prime Minister Russell Mmiso Dlamini to investigate whether politicians had, knowingly or not, rented accommodation to foreign nationals tied to the gambling network. “I also want to request the PM as well, he must investigate for us and ascertain if these criminals who have been involved in online gambling are not in the homes of some of us,” Mdluli told the Senate.
He also flagged a familiar problem: penalties too small to deter. In June, 84 of the arrested foreign nationals were convicted of immigration offences rather than gambling offences. Principal Magistrate Fikile Nhlabatsi handed down six-month sentences with the option of a E500 ($30) fine. Pay the fine, walk away.
A Regulatory Framework Caught Half-Built
Eswatini’s Gaming Control Act of 2022 is in force, but its implementing regulations remain unfinished. That gap is at the centre of the debate. MPs first called for new licences to be halted until the regulations are finalised during a House of Assembly sitting on 18 December 2025, and the Ministry of Tourism and Environmental Affairs has since paused fresh applications while renewing only four existing licences.
The Ministry of Finance’s grey-list warning gives the argument weight. Grey-listing raises compliance costs, slows correspondent banking and dents investor confidence in a small economy that can ill afford it. The forensic examination of the seized devices continues, and police say a comprehensive report will follow.
What began in March as a raid on unlicensed operators has become a case that stress-tests three institutions at once: policing, immigration and financial oversight.
Frequently Asked Questions
What charges do the arrested suspects face?
They face charges under the Gaming Control Act, the Money Laundering and Financing of Terrorism (Prevention) Act, and the Immigration Act. So far, most convictions have been for immigration offences rather than gambling.
How did the money move?
Investigators say proceeds were pooled and converted into cryptocurrency, mainly USDT, then routed through financial institutions in Abu Dhabi and the United States before returning to Eswatini.
Has Eswatini stopped issuing gambling licences?
New applications are paused. Only four existing licences have been renewed, under strict oversight, while the Gaming Control Act’s implementing regulations are finalised.
Why does the grey-list warning matter?
A grey-listing signals elevated financial-crime risk to global banks and regulators. For an economy Eswatini’s size, that can mean higher borrowing costs and reduced foreign investment.
Are politicians under investigation?
Court papers allege links to senior politicians, police and immigration officials. The Prime Minister has been asked by the Senate to investigate, and the police commissioner has rejected any immunity based on rank.
