The Financial Action Task Force has released a major new report exposing serious money laundering and terrorist financing risks across global gambling markets.
The report, titled “Red Flag Risk Indicators: Risks of Gaming and Gambling,” examined activity across more than 80 jurisdictions, covering both online and land-based gambling operations worldwide.
Illegal and unlicensed gambling has grown to a scale that now rivals the legal market in some countries, according to the FATF’s findings.
The organisation identified a range of warning indicators linked to money laundering through gambling, including deposits followed by withdrawals with little or no actual play taking place.
Other red flags highlighted in the report include the use of multiple accounts or payment methods and transactions that involve unrelated third parties making or receiving payments.
Online gambling was flagged as carrying particular risks due to the speed and volume of transactions, the ability to operate across borders, and the wide range of payment methods available to users.
The FATF also warned that criminals may purchase gambling credits with illicit funds and subsequently cash them out, creating the appearance that the money originated from legitimate gambling winnings.
Illegal offshore operators were identified as a growing threat, with many presenting themselves as legitimate businesses while offering anonymity and incentives that attract both everyday consumers and criminal actors.
Regulatory differences between jurisdictions were also cited as a complicating factor, allowing unscrupulous operators to exploit gaps in oversight and evade law enforcement scrutiny.
Technological innovation has expanded activity across online, cross-border, and multi-payment platforms, creating increasingly complex ecosystems that challenge both regulators and law enforcement agencies globally.
The report noted that gaming and gambling platforms depend on a wide range of related services, including social media platforms, digital marketplaces, and software developers, many of which fall outside existing regulatory frameworks.
The FATF further warned that beneficial ownership and shareholding structures can be deliberately arranged to bypass thresholds for regulatory checks, particularly where anti-money laundering and counter-terrorist financing controls remain weak.
This report represents the FATF’s first detailed examination of risks specifically associated with online and illegal gambling, drawing on contributions gathered over a year-long project involving more than 80 jurisdictions and numerous industry bodies and researchers.
In response to its findings, the FATF recommended stronger licensing and registration rules, greater awareness among service providers, and closer international cooperation between regulators and law enforcement agencies across borders.
