The Financial Action Task Force on 9 September published a new gambling risk study and a set of red-flag indicators, in its first detailed look at risks tied to online and illegal gambling. The year-long project drew on questionnaire responses from 80 jurisdictions across the FATF Global Network, written comments from 29 jurisdictions, and consultation with industry bodies, researchers and other private-sector stakeholders.
The report, called Risks of Gaming and Gambling, covers land-based and online casinos, sports and novelty betting, and other non-casino gambling such as scratch cards, arcades, bingo, lotteries and slot machines outside casinos. It also looks at online video and mobile gaming and illegal operators.
Illegal gambling is one of the sector’s most significant risks, the study says. In many jurisdictions, illegal markets rival or even exceed legal ones, and unlicensed offshore sites present themselves as legitimate businesses while offering the anonymity and incentives that appeal to customers. FATF links that risk to regulatory arbitrage, saying criminals exploit gaps between national frameworks, which makes information sharing and international co-operation harder.
FATF also says land-based casinos, online casinos and sports betting platforms remain especially exposed to money-laundering threats. The watchdog identified cash, e-wallets, mobile money and virtual assets as vulnerable payment channels, warning that the mix of options accepted online can allow rapid, anonymous cross-border transfers and the conversion of value into different forms.
Among the warning signs are smurfing, a mismatch between a customer’s declared location and IP address, and large deposits or withdrawals with little actual betting activity. Other indicators include repeated use of virtual private networks, frequent device changes, attempts to create several profiles using false or shared details, and betting patterns that look coordinated or manipulated.
The report also warns that ownership can be structured to stay below thresholds that trigger regulatory checks, especially where anti-money-laundering, counter-terrorism-financing and anti-corruption controls are weak. It says social media can be used to advertise illegal gambling, recruit money mules, coordinate competition manipulation and spread terrorist propaganda or fundraising messages.
Giles Thomson, FATF’s president, said that without robust safeguards the sectors can be attractive gateways for fraudsters, professional money launderers and organised criminal networks. He urged governments to strengthen oversight, crack down on illegal and offshore operators, boost international co-operation and deepen public-private collaboration.
FATF said the list of indicators is not exhaustive. It also cautioned that a single sign is not enough on its own, and that some patterns may point to problem gambling rather than deliberate criminal conduct. The report says several indicators together should prompt closer examination, and that evidence on video games remains thinner than on gambling itself.
