FATF Details Online Gambling Vulnerabilities as Digital Payments and Cross-Border Access Create Laundering Pathways

The Financial Action Task Force has sharpened its warnings around online gambling platforms, which it says are drawing increased interest from money launderers and terrorist financiers.

The Paris-based watchdog pointed to the sector’s rapid expansion and the availability of multiple payment channels that complicate oversight. Customers can readily reach operators outside regulated markets, while e-wallets, mobile money services and virtual assets hinder efforts to trace funds across borders. As reported by GamblingNews, researchers from H2 Gambling Capital expect online gambling to account for more than half of global gross gaming revenue for the first time in 2029.

Risk Indicators Published to Identify Suspicious Patterns

FATF released a set of risk indicators for gambling companies, regulators and law enforcement. These include payment methods shared by multiple customers, which may signal group activity, and inconsistencies between a customer’s declared location and their IP address. Large deposits and withdrawals paired with minimal actual betting activity represent another clear warning sign.

The organization explicitly called out smurfing, in which transactions are divided into smaller sums to evade anti-money laundering and know-your-customer thresholds. It also connected online gambling to broader issues including gambling abuse, corruption and cyber-enabled fraud. Traditional compliance frameworks built for land-based casinos and regulated banks can leave gaps when applied to this international, digital environment.

Giles Thomson, president of FATF: “Without robust safeguards, these sectors can be attractive gateways for fraudsters, professional money launderers and organized criminal networks.

I urge all governments to take note of the risk indicators we have set out today, and put in place appropriate risk-based responses, from strengthening oversight and cracking down on illegal and offshore operators, to boosting international co-operation, and deepening public-private collaboration.”

The report additionally flags terrorist financing risks on livestreaming sites through purchases of virtual goods or currencies, sales of games promoting extremist views, and donation requests. FATF advised looking beyond single transactions to connect data from accounts, devices, payment methods and betting behavior.

Reporting: GamblingNews

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