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Casinos and Betting

Casinos and Betting

Casinos, gambling and betting are on the rise and are a growing concern for governments and law enforcement agencies worldwide. Various businesses are involved in gambling activities, such as physical casinos and betting services, online casinos, but also bars and clubs with poker machines among others.

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.

Regulatory Compliance

Gambling and betting companies must be registered with the relevant regulatory authority. Additionally, they must implement strong AML measures including KYC, perform transaction monitoring, and report transactions that are suspected to be related to money laundering. Gambling entities must pay attention to transactions involving foreign currencies, cryptocurrencies or transactions that may be related to sanctioned persons or countries.

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