Organized crime and gambling - a never-ending story. In the case of the Austrian "Kajot" gang, which is said to have operated illegal slot machines on a grand scale over a long period of time, this saying takes on a whole new meaning: the authorities have been unable to arrest the masterminds for years. They defended themselves with tactical dodges and even tried to blame an investigator's mental illness on the courts.

The Austrian "Kajot" gang is a prime example of how organized crime and tactical dodges can fool the authorities for years. Their business with illegal gaming machines flourished for decades. The name "Kajot" was borrowed from the brand names of the terminals that the group normally used (or continues to use) for their activities.

Despite millions in wins at over 50 locations, the masterminds remained more or less unchallenged for a long time: Until the Austrian Federal Criminal Police Office struck three years ago with 140 officers and carried out 13 house searches. At this point, the story should have taken a drastic turn. As a rule, as soon as suspicions are confirmed, the officers have the upper hand. There are seizures, arrests, data analysis, court proceedings, etc. As was the case, for example, when an illegal casino operation was uncovered in North Rhine-Westphalia this summer or when large-scale illegal poker rounds were uncovered in Munich in the fall. In the "Kajot" case, however, there can hardly be any talk of an end to the crooked tours.

Instead of admitting defeat, the people behind the racket (even before the raid) repeatedly chose strategies that reduced the traditional investigative process to absurdity: officials were discredited as mentally incompetent, a court expert was allegedly bribed and, to top it all off, the gang turned themselves in - a move to throw the investigation off the scent.

What sounds like the script of a crime thriller is reality: a stubborn, sophisticated dance on the line between right and wrong with a lot of manipulation that will probably continue to challenge Austria's authorities for quite some time. Now there is previously unpublished information that leaves even the most neutral observers shaking their heads.

A criminal network with unbelievable scope and callousness

The "Kajot" gang can now be accurately described as the "trusted enemy" of the Austrian justice system. It has been the problem child of local law enforcement for years.

Their business activities read almost like a textbook example of organized gambling crime, where the ingenuity seems to be unlimited: those responsible are said to have generated up to seven million euros a year from illegal gambling in 55 locations. Speaking of which - in the summer of this year, reports emerged about the possible involvement of state-owned Austrian gambling companies in illegal online casinos.

The masterminds are acting with a mixture of audacity and tactical skill that is second to none. Investigators from the Public Prosecutor's Office for Economic Affairs and Corruption (WKStA) are fighting their way through a dense network of front companies, straw men and corruption.

High-tech and manipulation: vending machines by remote control

What sounds like a cinematic game of cat and mouse has become part of everyday life for the financial police in Wels over the years: Time and time again, they searched pubs where "Kajot" vending machines were suspected. But even before they arrived, the machines were switched off by remote control. This technical trick was used to conceal the evidence, as machines that are not in operation cannot be easily checked. Incidentally, 45 illegal gaming machines were recently destroyed in Frankfurt am Main.

The gang also used manipulated accounting programs to make the authorities believe that the profits were lower than they really were. The real wins were hidden in leather suitcases. Even taxes that were actually due for illegal income were always cleverly evaded.

A corporate network like a group

The structure of the gang is more reminiscent of a multinational company than a criminal organization. With 19 companies and around 70 employees, "Kajot" operated a logistically sophisticated system: software development, IT services, recruitment - all officially completely legal.

Behind this façade, however, they were working flat out to keep illegal gaming machines in operation. Even the wins from the machines flowed back into seemingly legal business areas and were thus "laundered clean". Many entanglements were also uncovered during the major raid at Tipster last spring.

Corruption and intimidation as a strategy

The gang knows how to put pressure on its opponents: One particularly brazen case concerns the group leader of the financial police, Christian W., who had repeated dealings with "Kajot" during his 16-year tenure. According to press reports, he was used to a lot from the group. In 2021, however, things took a completely unexpected turn for him.

The gang's lawyer requested an investigation into what he considered to be the authority's actions, which were incompatible with the law. He suspected that the manager was no longer able to keep track of his duties and that there were grounds for suspecting mental illness. As a result, proceedings for abuse of office were actually initiated against W., although these were eventually dropped. Nevertheless, the move tied up resources, allowing "Kajot" to breathe a sigh of relief, at least in the short term.

In addition, experts were allegedly bought to prepare reports for favors. This went as far as bribing a court expert who "proved" to the group that the machines operated were games of skill: a crucial difference to classic gambling machines that can overturn the basis for legal proceedings. Emails show that the expert agreed his findings in advance with the wire-pullers and even received fees for "lectures" from the companies. Incidentally, sports betting is considered a game of skill in Austria and is therefore largely unregulated.

Between unscrupulousness and public recognition

When the gang set up a vending machine container right next to the Welser Tafel - an institution for the needy - the waves ran high. Gambling addicts, often socially disadvantaged people, were literally invited to play. At the same time, the group was the name sponsor of a local soccer club until a few years ago. These public appearances contrast sharply and have ensured that "Kajot" is difficult to assess for quite a few outsiders.

Legal battle with curious strategies

The investigations into the "Kajot" group are a tour de force for the authorities. Time and again, those responsible manage to pull themselves out of the line of fire by using legal dodges. Officials and prosecutors have to fight their way through a multitude of offenses and opaque structures: from money laundering and tax evasion to forgery of documents.

In order to put obstacles in the way of investigators, the gang itself does not stop at methods that incriminate its own organization. In the past, those responsible have repeatedly used voluntary declarations to create a buffer against harsher penalties.

For example, certain unduly earned sums were reported to the tax office, which then only resulted in administrative penalties instead of extensive financial proceedings. As the Austrian press wrote, the fines in question were either served by scapegoats in prison or simply not paid by foreign companies. In view of a turnover of several million euros per year, it was apparently worth accepting such difficulties.

Conclusion

Despite years of investigations and more and more revelations, the "Kajot" gang seems to be elusive. The Austrian law enforcement authorities are constantly reaching their limits. Incidentally, the main suspect, referred to by witnesses as the "phantom", lives unmolested in the Hausruckviertel, which is located in the south-western central region of Upper Austria. According to the Austrian press, he is an art collector and enjoys various sporting activities.

The complexity of the case, from encrypted financial flows to allegedly bribed experts, is making the investigators' work considerably more difficult. The presumption of innocence continues to apply to all those involved. The complete uncovering of the widely ramified network is likely to remain a mammoth task, the conclusion of which is still a long way off.

Another curious story from Austria: In the summer of this year, a unique domain seizure was carried out by a female player at Mr Green.

Source of the image: https://pixabay.com/illustrations/boss-intimidation-mafia-crime-8952450/

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