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