TLDR
- FATF says fast growth in online gaming and payment systems is creating new money laundering risks worldwide.
- Casinos, online casinos, and sports betting remain the most exposed parts of the gambling sector.
- The report is based on responses from 80 jurisdictions plus industry and law enforcement input.
- Offshore and unlicensed gambling sites are described as matching or exceeding legal markets in some countries.
- FATF lists specific red flags for operators, including odd ownership structures and unusual payment patterns.
The Financial Action Task Force has warned that online gambling is becoming more exposed to money laundering. The Paris-based watchdog says the growth of online gaming, digital payments, and cross-border platforms is opening new paths for illegal activity.
The warning comes from a new FATF report called Risks of Gaming and Gambling. It looks at how the gambling sector fits into a larger system where value moves between many different players.
Some of these players may operate outside their country’s anti-money laundering rules. That makes it harder for regulators to track suspicious transactions.
FATF built the report using survey answers from 80 jurisdictions across its Global Network. It also spoke with industry groups, researchers, and government agencies, and reviewed real case studies.
Casinos and Sports Betting Under the Spotlight
FATF found that money laundering through gambling is still a known risk in many countries. Land-based casinos, online casinos, and sports betting were named as the most vulnerable areas.
Video and mobile gaming showed lower levels of money laundering activity, based on current evidence. FATF said the digital environment overall is still creating more chances for criminal activity to connect with gambling platforms.
Online operators now accept many types of payment. FATF pointed to cash, e-wallets, mobile money, and virtual assets as options that each carry their own laundering risks.
Having more payment choices allows transactions to move fast, quietly, and across borders. It also makes it easier to convert money from one form to another, which adds complexity when authorities try to trace funds.
Offshore Sites and Junkets Still a Concern
Illegal and unlicensed offshore gambling was named as a serious risk area. FATF said in some countries the illegal market can match or even beat the size of the legal one.
These offshore operations often use marketing and secrecy to stay hidden. That makes them difficult for regulators and law enforcement to monitor closely.
Junkets, the groups that bring high-spending gamblers to casinos, are still on FATF’s radar too. The segment is shrinking under tighter rules, but risks around player anonymity and unclear ownership remain.
The report also said gambling platforms are becoming more linked to social media. These channels can be used to organize illegal activity, promote unlicensed betting sites, recruit money mules, or help manipulate sports competitions.
FATF laid out warning signs operators should watch for. These include ownership structures that are hard to trace across borders and unclear final owners of a business.
The report also flagged the use of trusts, foundations, or nominee shareholders that may exist to dodge regulatory checks. Third-party providers or white-label deals without strong oversight were named as another risk area.
Contracts for software, marketing, or consulting services that don’t have a clear business purpose were also listed as a red flag. At the customer level, FATF pointed to multiple accounts, heavy VPN use, and mismatched customer and payment details.
Other customer warning signs include unclear sources of wealth and transactions tied to higher-risk countries. On the payment side, FATF flagged deposits followed by fast withdrawals with little betting activity in between.
Other payment red flags include multiple payment methods under different names, third-party deposits, and quick withdrawals sent to different people. Transactions involving virtual assets were also included on that list.
FATF’s report draws on input from dozens of countries and is meant to help regulators and gambling operators spot risks earlier.
