The Gambling Commission is throwing new light on the betting industry, calling out the main trends and threats in their efforts to combat money laundering. Their biggest concern is that betting operators are not properly checking customer data, leaving some big gaps in anti-money laundering practices.
John Pierce, Gambling Commission enforcement director, had something to say at the Gambling AML (Anti-Money Laundering) Group Training Day on 12 February regarding the key findings the watchdog has become aware of recently.
According to Pierce, cryptos are no longer seen as a new risk factor, even though their challenges haven’t stopped growing. He added: “As cryptocurrencies become more prevalent, we expect more payment providers to offer crypto payment facilities.” Pierce is sure that betting operators need to fully understand the services offered by their payment providers.
What the Gambling Commission is really worried about is money laundering and terrorist financing risks associated with the betting industry.
Considering all the risks, the Commission is urging betting operators to take a much closer look at their usual users and track their activity. The purpose? To make sure they’re properly taking care of all risk factors, from simple customer transactions to placed bets and location. In a few words, no more cutting on AML checks.
What’s more, the Commission thinks betting operators lean way too much on publicly available sources and self-reported info when it comes to catching sight of money laundering and terrorist financing risks.
That’s not all! It appears some operators are letting huge stacks of cash flow through without even bothering to run some AML checks. Tell me more about risky business!
On top of all this, many betting companies are supposedly ignoring their own data and relying on some financial red flags only. Guess what! They leave the door wide open for sketchy transactions to slip through.
Pierce highlighted the need to be in constant dialogue with customers, starting with an early stage. Plus, operators should think of setting useful money and non-money-based limits when determining whether to require more info from customers.
Pierce added: “It is key that staff are given sufficient guidance on how to review documents and identify red flags.”
Among the emerging online threats that the Commission is dealing with is the growing popularity of AI and crypto in the betting sector. How come? There’s been a rise in customers using AI to forge ID documents and info regarding the source of funds.
What’s more, the industry regulator reported cases of ID farming. That’s when hackers collect personal info to get access to bank accounts that are then used to open gambling accounts.
As a result, accounts designed to launder money have seen a significant spike in recent times. The same happened with other fraudulent activities in the betting industry.
By the way, the Gambling Commission revealed in February 2025 that online gambling in Great Britain registered a significant boom, with revenues increasing by 21% in Q4 last year, landing £1.54 billion ($1.92 billion). There’s more – the total amount of online bets and spins surged by 8% compared to 2024, reaching a crazy sum of 25.9 billion.
Note that all this happened in the context that the average monthly active accounts went down by 3% in the 4th quarter.
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