The Gambling Commission released its long-awaited 2026 risk assessment report on Thursday, assessing vulnerabilities related to money laundering (ML) and terrorist financing (TF) across Britain's licensed gambling industry.
The report, based on data from April 1, 2023, to October 31, 2025, identified remote and non-remote casinos and betting activities as the subsectors with the highest risk for these issues. In contrast, sectors like the National Lottery and society lotteries were deemed low risk.
From April 2024 to March 2025, gross gambling yield (GGY) figures revealed that remote casinos generated £5 billion, with slot games accounting for £4.2 billion. Remote betting produced £2.6 billion, while non-remote betting reached £2.5 billion, including a mere £28 million from on-course betting.
To evaluate risks, the commission utilized a formula where likelihood multiplied by impact equals risk. This methodology assessed how susceptible each sector was to potential money laundering exploitation. Despite the National Risk Assessment categorizing casino TF risk as low, the Gambling Commission rated it as medium due to the severe consequences tied to terrorist financing incidents.
Peer-to-peer gambling products, including poker and betting exchanges, were flagged as carrying heightened ML risks. Poker was classified as having a "high" overall ML risk in both remote and non-remote environments, while remote betting also faced similar risks.
The gambling software sector saw its ML risk classification raised from low to medium, reflecting the risks associated with cross-border software supply and the potential for licensed software to be used by unlicensed operators. Furthermore, the report identified vulnerabilities in technical systems, such as automatic ticket redemption in gaming machines and self-service betting terminals.
Payment methods emerged as a significant risk factor. The commission highlighted an increasing reliance on e-wallets, prepaid cards, and crypto-linked funds in remote sectors, noting that these methods could facilitate fraudulent activities. Complex payment systems that involve multiple methods can further obscure criminal operations.
Earlier this year, the Gambling Commission launched a taskforce to examine illegal gambling prevalence, focusing on the financial transactions of online operators. This taskforce will convene semi-annually for a year-long initiative.
A key concern in the report was the growing sophistication of criminal tactics aimed at evading customer due diligence. Techniques now include the use of deepfakes and AI-generated identity fraud.
The report pointed to operator deficiencies as a primary contributor to ML and TF risks, noting poor anti-money laundering and counter-terrorism financing policies, ineffective training, and insufficient monitoring of linked or duplicate accounts.
A significant finding was that insufficient scrutiny of white-label partnerships posed additional risk. This follows a recent Department for Culture, Media and Sport (DCMS) consultation, which found white-label partnerships exempt from criticism amidst discussions on banning unlicensed gambling sponsorships across various sectors.
Risks connected to casinos providing Money Service Business (MSB) functions, such as currency exchange and cheque cashing, were also noted. In 2024, approximately 3% of remote casino license holders and 56% of non-remote holders provided MSB services, with MSB-related casino activity estimated at £70 million. Indicators of MSB-related money laundering included numerous small foreign-exchange transactions and dealings with high-risk jurisdictions.
The assessment also pointed to an alarming increase in illegal gambling, particularly from unregulated casinos that often accept cryptocurrencies. Earlier this year, the commission indicated emerging challenges with data accuracy linked to anonymizing technologies, like virtual private networks, which facilitate organized crime activities, including money laundering.
The UK government has allocated £26 million over three years to support the Gambling Commission in combating illegal markets and addressing payment chain vulnerabilities linked to these activities. Recently, two arrests were made in Bristol following a police operation targeting a suspected illegal casino.
