11th Jan2020

Money Laundering in the Gaming Industry

by James Smith


Most criminal offenses happen in environments where huge amounts of cash are seen to be moving from one account to the other together with numerous financial transactions. The casinos and the entire iGaming industry is a potential ground for such vices. Money laundering can, therefore, be termed as the unfair acquisition of huge amounts of cash in an account and later on putting the money into use that cannot be easily traced or deposit the cash into other smaller accounts where the cash is put into another use or withdrawn for other purposes.

It is a criminal offense has seen the gambling industry lose huge amounts of cash through this unfair practice that is coning people money. Most cone people have used Sportsbooks and casino sites to go away with people’s cash leaving the economy as a great looser of the whole story.
How does Money Laundering Work?

Money laundering which has been identified as an illegal activity that involves obtaining money through criminal activities has a short process with few steps to be executed. This offense is executed in three main stages that I will illustrate in this text. The first stage is called the placement stage, this is the initial stage of money laundering.

Here, funds are obtained through any unidentified means and deposited into an account. These funds which are usually obtained in an illegal manner are deposited into an account which is usually any financial system. The next stage the money goes has been identified as layering. At this stage, the deposited money is subjected to several transactions or alternatively sent to other accounts so that the original source of the money cannot be traced. In this stage, the criminals could do anything with the money which includes buying assets and making deposits into different accounts.
The final stage of money laundering which is called the integration stage involves the redirecting of the money back to the launderer. This happens in different forms like a profit or dividend received from a newly created company or salary to the newly created position.

Money Laundering in Online Gambling

As previously noted, casinos are one potential ground for this money laundering activities. The sites which are involved in a huge transfer of funds among gamers and their accounts are not an exemption of this deadly crime. Money could be acquired from anywhere by a gamer, what is done at the casino is this, the acquired money gets into a betting account for the purpose of gambling.

Now that one cannot be questioned over how the cash has been acquired, the cash is now used to place bets with smaller amounts attached to the bets. The deposited money can be withdrawn at any time as the purpose was meant to hide the identity of that cash and not betting as many may perceive it. In this instance, the casino has been used as a financial system to store cash for some time before being withdrawn for other purposes.

KYC Process to Prevent Money Laundering


The Know Your Customer policy has offered a better and yet a safer way of preventing the money laundering vice that is slowly eating away economies of different nations. However, there are still some sites where you can complete an easy casino verification process and get free spins for slots without submitting any documents (ID, bank statement, phone bill). The KYC process is meant to identify the real owner of any particular transaction that may be handled.

Here, the customer’s details are fully captured including passports that will identify him as the true owner of the account. The strict KYC process has made it hard for many criminals to continue with the vice since they can easily be traced and the money recovered. It has been an effective tool in the fight against money laundering practices.


The criminal vice that has led to a collapse of many financial systems and economies has equally had a negative effect on the gaming environment making gambling more of criminal activity than a good vice for society. Some casinos even tried to implement face recognition to prevent such crimes.

Great measures need to be out in place to ensure that the mess does not thrive among great economies of these times. The KYC policies which have contributed a lot in the reduction of the vice should be well structured so as to lock all the possible loopholes criminals can use.

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