The Financial Action Task Force (FATF) has published new risk indicators for the gaming and gambling sectors, covering money laundering, terrorist financing and proliferation financing. The report is intended to help governments and operators identify activity linked to illicit finance.
Casinos and betting face highest exposure
FATF released Risks of Gaming and Gambling on Wednesday, updating its 2009 analysis of the casino sector. The review used questionnaire responses from 80 jurisdictions, written comments from a further 29 and input from industry consultations.
Land-based and online casinos, along with sports betting, were identified as having the highest exposure to money laundering. Lotteries and scratchcards were assessed as lower-risk activities.
The report also found more documented terrorist financing activity in online gaming than in gambling. Proliferation financing risks, however, remain limited across both sectors.
Cash, e-wallets, mobile money and virtual assets were highlighted as payment methods particularly vulnerable to misuse. The risk is especially pronounced when operators or customers use them to split deposits into amounts below reporting thresholds.
FATF president Giles Thomson said unregulated parts of the market could become “attractive gateways for fraudsters, professional money launderers and organised criminal networks”. He urged governments to improve supervision, take action against illegal and offshore operators, and expand cooperation between the public and private sectors.
Danish licensees among operators affected
Spillemyndigheden said on Friday that the report followed a wider review conducted by FATF member countries during the past year. That work assessed the gaming sector and its exposure to money laundering, terrorist financing and proliferation financing.
The Danish regulator said it had contributed actively to the review and had been represented on FATF’s gaming sector working group. It also confirmed that many of the report’s indicators are relevant to operators holding licences in Denmark.
Illegal gambling remains a focus in Denmark
The report’s warning about illegal and offshore gambling is particularly relevant to Denmark, where Spillemyndigheden obtained a court order last year to block 178 unlicensed gambling sites. The regulator described the action as the largest of its kind in its history.
The case showed how illegal operators can obscure their presence by using multiple variations of the same site. FATF also identifies that practice as a red-flag indicator.
The Danish response forms part of a broader pattern examined by FATF through its grey- and black-listing system. Under that system, jurisdictions with weak anti-money laundering and counter-terrorist financing controls can face increased monitoring or reputational sanctions.
