Guarding Against Money Laundering in the Gambling Industry: Identifying and Managing ML/TF Risks for Casinos and Betting Agents
Money launderers often try to use casinos and betting agents as means to launder money due to the anonymity provided as a result of the cash-intensive nature of the business.
The ability to receive cash from associates, combine funds from multiple sources, exchange money, store money in betting accounts prior to withdrawing, "messenger betting" or placing "cash-out bets" are practices that expose gambling entities to the risk of money laundering and terrorist financing (ML/TF).
Casinos and betting platforms can store or transfer illegal funds, allowing clients to conceal illicit gains and avoid statutory laws. This can expose the casinos and betting businesses to money laundering (ML) and terrorism financing (TF) risks. The lack of regulation and oversight in "live betting" can also create compliance gaps in the sports and race betting sector. Additionally, conflict of interest and fear of losing business can also lead to weak compliance in this sector.