Sports and Racing Betting Operators are required to engage in activities of placing a bet on the result of a race/competition by placing money. Subsequently, if the following activities are engaged in, anti-money laundering and/or counter terrorism financing (AML/CTF) measures should be implemented:
Placing bets via a bookmaker or sportsbook in behalf on a client;
Cash transactions valued above a certain threshold are carried out;
Cash transactions valued above a certain threshold are carried out;
Money is stored in provided accounts such as mobile wallets for betting purposes
Often, depending on jurisdiction, if a person’s gross annual revenue is valued more than a specified amount, said person may be regarded as a ‘financial institution’. For example, businesses earning over US $1 million are considered a ‘regulated entity’ by the Bank Secrecy Act (USA), whereas in Australia, for payouts worth over AU $10,000 require an Identity Verification (IDV) by Austrac.