FATF Updates Risk Indicators for Gaming and Gambling with Focus on Casinos and Online Channels
FATF released its Risks of Gaming and Gambling report updating 2009 casino analysis with input from 80 jurisdictions plus 29 submissions. Casinos, online gaming, and sports betting show highest ML risks; e-wallets, cash, and structuring transactions are key vulnerabilities. Danish enforcement against 178 illegal sites illustrates flagged tactics.
SCCG Take — Regulators and licensed operators should align controls to these specific indicators to reduce exposure to grey-listing and enforcement actions targeting offshore activity.
The Financial Action Task Force (FATF) has identified red-flag indicators of money laundering, terrorist financing, and proliferation financing across the gaming and gambling sector.
The report, Risks of Gaming and Gambling, updates FATF’s 2009 analysis of the casino sector. It incorporates responses from 80 jurisdictions, submissions from another 29, and feedback from industry consultations.
Sector Risk Levels and Payment Vulnerabilities
Land-based and online casinos as well as sports betting have the highest exposure to money laundering risks. Lotteries and scratchcards were assessed as lower risk. The report found more documented cases of terrorist financing involving online gaming than gambling, while proliferation financing risks remain limited.
FATF highlighted cash, e-wallets, mobile money, and virtual assets as payment channels particularly susceptible to misuse. Risks increase when transactions are deliberately divided into smaller deposits to stay below reporting thresholds.
Enforcement Context and Official Recommendations
Giles Thomson, FATF President, said unregulated sectors could become “attractive gateways for fraudsters, professional money launderers and organised criminal networks.” He called on governments to strengthen oversight, take action against illegal and offshore operators, and increase cooperation between the public and private sectors.
The Danish Gambling Authority contributed to the review and participated in FATF’s gaming sector working group. It stated that many of the indicators are relevant to operators licensed in Denmark. In 2025, Spillemyndigheden obtained a court order blocking 178 unlicensed gambling websites, marking its largest action against illegal gambling sites. The enforcement illustrated operators using multiple website variations to conceal activities, a practice FATF identifies as a red-flag indicator.
FATF uses its grey and black lists to flag jurisdictions with weaknesses in anti-money laundering and counter-terrorist financing controls.
Reporting: Yogonet International
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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