The Financial Action Task Force (FATF) has published a report outlining risk indicators related to money laundering, terrorist financing, and proliferation financing within the gaming and gambling industries.
Titled "Risks of Gaming and Gambling," the report was released on Wednesday and updates the FATF's 2009 analysis of the casino sector. It incorporates findings from 80 jurisdictions through questionnaires and additional written comments from another 29 jurisdictions, along with insights from industry consultations.
According to the report, land-based and online casinos, as well as sports betting, present the highest exposure to money laundering risks, while lotteries and scratchcards are viewed as lower risk options. Specifically, the analysis shows that online gaming has documented instances of terrorist financing, although the risks of proliferation financing are considered limited in both sectors.
The report highlights that certain payment methods, including cash, e-wallets, mobile money, and virtual assets, are particularly vulnerable to abuse, especially when operators utilize them to structure deposits that fall below reporting thresholds.
FATF president Giles Thomson remarked that unregulated sectors pose a risk of becoming "attractive gateways for fraudsters, professional money launderers, and organised criminal networks." He urged governments to enhance oversight, take strong action against illegal and offshore operators, and foster greater collaboration between public and private sectors.
In Denmark, the Danish Gambling Authority underscored the report's relevance for local licensees, noting that this report arises from a comprehensive review by FATF member countries that was conducted over the past year. The regulator, known as Spillemyndigheden, actively participated in this effort and was part of FATF's gaming sector working group, affirming that several risk indicators highlighted in the report are applicable to Danish operators.
Moreover, the FATF's cautions against illegal and offshore gambling resonate with measures already taken in Denmark. Notably, last year, Spillemyndigheden successfully obtained a court order to block 178 unlicensed gambling sites, marking the largest action of its kind in the regulator’s history. This case illustrated how illegal operators use multiple website variations to conceal their activities, which aligns with risk indicators identified in the FATF report.
Denmark’s initiatives are in line with broader trends observed by FATF, which monitors jurisdictions with weak anti-money laundering (AML) and counter-terrorist financing (CTF) controls through its grey and blacklisting system that enforces increased scrutiny and potential reputational sanctions.
