UKGC Updates AML Guidance Due to Risks in Crypto Gambling
The UK Gambling Commission has recently issued new guidance addressing anti-money laundering and terrorist financing risks in the gambling sector. The update highlights the ever-evolving landscape of online and crypto gambling activities.
- The UK Gambling Commission (UKGC) releases updated anti-money laundering (AML) guidance.
- This highlights 13 broad AML risks, including issues with crypto assets and the rise of crash games.
- UK licensed operators offering games on unlicensed websites are at high risk of non-compliance and must act immediately.
- Growing interest and concerns over the usage of cryptocurrencies in gambling are noted.
- Operators must thoroughly understand and monitor their business relationships and payment providers.
The UK Gambling Commission (UKGC) has updated its anti-money laundering (AML) and counter-terrorist financing guidance. The new guidance spotlights the sophisticated and emerging risks within the gambling industry, particularly online and involving cryptocurrencies. With the digital transformation of gambling and betting platforms, the regulatory body underscores the necessity for vigilance among operators holding a UK gambling license to combat these risks effectively.
Highlighted AML Risks and Crypto Concerns
The recent update, as of April 2025, brings to the forefront 13 broad AML risks, including:
- Money service business activities are used in casinos, both online and physically.
- The application of artificial intelligence to sidestep customer due diligence.
- Problems arise from third-party business relationships, including white-label partnerships.
- The rise in the use of crypto assets and their associated high-risk categorisation.
Notably, the UKGC expresses alarm over licensed games developed within the UK being available on unlicensed, offshore platforms targeting the UK market. In light of this, operators are pressing to monitor consistently and, when necessary, sever ties with non-compliant partners immediately. After doing this, the operators should actively notify the Commission.
The Surge of Crypto Gambling
The UKGC has tagged the burgeoning interest in cryptocurrencies within the gambling sector as a high-risk avenue. The UKGC states that these activities are prone to money laundering activities. The updated guidance follows a significant theft from the ByBit crypto exchange, raising fears of the stolen wealth potentially being laundered through online gambling platforms. To mitigate associated risks, the UKGC insists on a comprehensive understanding and due diligence regarding the acceptance and handling of cryptocurrency.
Crash Gambling Games Under Scrutiny
The updated guidance spotlights an increased interest in “crash games,” particularly by legally licensed casinos. These games, where bets are placed on an unknown multiplier that could “crash” at any moment, are being exploited. The UKGC sees them as potential avenues for money laundering due to their inherent gameplay mechanics. The UKGC advises a careful assessment of the AML risks presented by new game types, suggesting inclusion in a customer’s risk profile to detect suspicious activity more effectively.
Parting Thoughts on Crypto Gambling
With these updates, the UKGC is signalling a proactive stance towards evolving threats within the burgeoning online and crypto gambling sectors. It calls for an integrated approach among gambling operators to understand, actively manage, and mitigate the emerging risks of technology and consumer behaviour changes. As the gambling landscape continues its digital shift, the updated guidance serves as a timely reminder of the critical need for robust AML strategies and practices to safeguard the industry’s integrity and its patrons.
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Peter Wilson is the Editor-in-Chief at GamblingAuthority. He has more than nine years of experience from the iGaming industry and is a valuable resource for everything related to online casinos.
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