The Financial Action Task Force has published a report identifying red-flag indicators for money laundering, terrorist financing and proliferation financing across gaming and gambling.
The report, Risks of Gaming and Gambling, updates FATF’s 2009 analysis of the casino sector and draws on responses from 80 jurisdictions, comments from another 29 and industry consultation.
FATF identifies land-based casinos, online casinos and sports betting as carrying the highest money laundering exposure, while lotteries and scratchcards present lower risk. It also finds more documented terrorist financing activity in online gaming than gambling, although proliferation financing risks remain limited across both sectors.
Cash, e-wallets, mobile money and virtual assets are among the payment methods most vulnerable to abuse, particularly when used to structure deposits below reporting thresholds. Giles Thomson, FATF president, warned that unregulated sectors can become “attractive gateways for fraudsters, professional money launderers and organised criminal networks”.
He urged governments to strengthen oversight, pursue illegal and offshore operators and improve public-private cooperation.
Danish regulator says the indicators matter for local licensees
The Danish Gambling Authority said the report follows a broader FATF review of gaming and associated financial crime risks.
Spillemyndigheden said it contributed and participated in FATF’s gaming sector working group. The regulator confirmed that indicators identified in the report are relevant to operators licensed in Denmark.
FATF’s focus on illegal and offshore gambling is relevant in Denmark, where Spillemyndigheden last year secured a court order blocking 178 unlicensed gambling websites. This case highlighted how illegal operators use multiple website variations to disguise their presence, a tactic FATF identifies as a red-flag indicator.
Denmark’s approach aligns with FATF’s grey and black listing system, under which jurisdictions with weak anti-money laundering and counter-terrorist financing controls can face increased monitoring and reputational consequences.
FATF’s latest guidance reinforces how payment methods, customer verification and offshore access are central AML risks for gambling operators. The practical pressure will fall on regulators and licensees to turn these indicators into stronger transaction monitoring. However, the process might make compliance systems become blunt and burdensome.
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