EXCLUSIVE INVESTIGATION: Exposing a multi-million illegal gambling ring

A network of criminals operating a multi-million-euro underground gambling racket, including illegal lotto and sports betting, is being allowed complete impunity by the authorities, including the police.

The Shift has learned that an investigation by the Financial Intelligence Analysis Unit (FIAU) initiated in 2020, soon after the arrest of Melvin Theuma – the go-between in the assassination of journalist Daphne Caruana Galizia – provided intelligence to the police last year regarding the individuals involved in this criminal ring.

The reports outlined how a small group of criminals amassed unexplained wealth, including multi-million-euro property portfolios and luxury cars, while living lavish lifestyles funded through illegal gambling activities.

These reports have been sitting with the police’s Financial Crimes and Investigations Department (FCID), but no arrests or prosecutions have been made to date.

The FIAU intelligence reports provided evidence of significant money laundering activities and have been shared with financial institutions locally and abroad for further investigation and intelligence gathering.

The reports identify individuals openly operating this illegal gambling network, leading to significant losses in state revenue and exacerbating the broader social harms associated with unregulated betting activities.

The Żejtun mastermind

The FIAU reports reveal a sophisticated criminal network coordinated by a self-employed ‘businessman’ from Żejtun. He operates from a bar metres away from the town’s police station and his massive ODZ villa on the outskirts of Żejtun.

The FIAU identified Jason John Desira, 52, who describes himself as a ‘digital creator’, as the mastermind of a nationwide illegal lotto operation.

He spends his time between his ‘office’ on top of Jack’s Bar and his villa, giving orders and communicating with ‘runners’ using multiple mobile devices.

All this happens under the noses of police officers at the Żejtun police station, located a few metres away from Desira’s ‘office’.

FIAU intelligence also indicates that Desira is believed to have taken over the illegal lotto operations and most of the ‘runners’ previously managed by Melvin Theuma.

Theuma, the intermediary linked to the assassination of Caruana Galizia, was known for his involvement in an underground lotto business. Court evidence indicated that during a police raid which led to his arrest, officers recovered approximately €2 million in cash.

FIAU intelligence reports indicate that Desira and a small group of loyal collaborators manage significant weekly sums, amounting to tens of thousands of euro in illegal bets. His operations are widely known, not only by the police but also among those who frequent clubs and bars in the southern part of the island.

Punters are regularly approached at bars, clubs, and even in their homes, and they receive official receipts for their wagers. Only cash is accepted.

The network

The FIAU has also compiled files on several other nationwide illegal gambling operators working alongside Desira or individually. Their activities include illegal lottery schemes and unregulated betting on sports, particularly football and horse racing.

The Shift is informed that in 2023 and 2024, the FIAU reported its intelligence to the police regarding suspected serious money laundering activities concerning Engelbart Mamo, a 53-year-old from Rabat. The intelligence included property transactions with Melvin Theuma in an apparent money laundering attempt.

No action has been taken so far by the police.

The FIAU’s intelligence also identified several other key figures involved in the illegal betting trade across the island.

Dossiers have been compiled and sent to the police for action regarding Darren James Vella, a 35-year-old from Birkirkara; Emanuel Baldacchino, 71, and his son Steve Baldacchino, 47, both from Qormi; Warren Attard, 47, from Marsa; Fabian Grima, 47, from Qormi; and George Scicluna, 60, also from Qormi.

The FIAU intelligence has compiled detailed evidence about each of these individuals, highlighting how they were laundering money from their illegal activities through multi-million-euro property deals on the real estate market. The intelligence includes information on property companies and transactions utilised by these individuals to launder their illicit proceeds. All information has been with the police for over a year.

When asked to confirm the receipt of the FIAU reports regarding individuals involved in managing the criminal, illegal nationwide gambling network, neither Police Commissioner Angelo Gafa nor the head of the FCID, Assistant Commissioner Fabian Fleri, provided a comment. They also did not explain why no action has been taken regarding the FIAU’s conclusions.

Instead, the police informed The Shift that the information was classified, stating: “The police are not in a position to confirm or deny such information.”