The UK Gambling Commission released a broad report on Thursday detailing the money laundering (ML) and terrorist financing (TF) risks faced by licensed gambling operations across Britain. The report, covering data from April 2023 to October 2025, highlighted that both remote and non-remote casinos, as well as betting activities, are at the highest risk for these threats. Meanwhile, the National Lottery and society lotteries are considered safer bets, carrying lower risk profiles.
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Casinos and Betting Under the Microscope
According to commission data, from April 2024 to March 2025, the remote casino sector saw a gross gambling yield (GGY) of £5 billion, with slots contributing a hefty £4.2 billion. Remote betting and non-remote betting followed, generating £2.6 billion and £2.5 billion, respectively. Interestingly, only £28 million came from on-course betting—indicating a shift in bettor preferences. The commission’s risk assessment applied a “likelihood x impact = risk” formula, which focused on how vulnerable each sector might be to money laundering. Notably, while the nationwide assessment classifies the TF risk in casinos as low, the Commission raised it to a medium risk due to the severe potential impacts of TF incidents.
Technical Vulnerabilities and Payment Methods
The report didn’t just stop at risk sectors but examined into technological vulnerabilities, identifying issues such as automatic ticket redemption systems and self-service betting terminals. Payment methods also emerged as a top concern, especially with the increasing use of e-wallets, prepaid cards, and cryptoasset-linked funds in the remote sectors. These systems, with their complex structures, offer criminals new avenues for concealing illicit transactions. In response to these emerging threats, the commission has set up a taskforce this year to tackle illegal gambling, scrutinizing online operator payments to tighten operations. This taskforce aims to meet twice annually over a year-long period to address these challenges head-on.
Operator Failings and White-Label Partnerships
Operator missteps remain a thorn in the sector’s side. The Commission’s report highlights gaps in anti-money laundering (AML) and counter-terrorism financing (CTF) controls among operators, pointing to poorly trained staff and inadequate monitoring systems. Notably, white-label partnerships have come under fire for insufficient oversight, a long-standing industry issue that went untouched in the recent DCMS consultation on unlicensed gambling sponsorship bans. White-label relationships allow brands to use established licences—often leading to weakened scrutiny. This risk factor is increasingly concerning, given the UK government’s plans to criminalise the promotion of unlicensed operators through secondary legislation under the Gambling Act 2005.
Illegal Gambling and MSB Concerns
Illegal gambling is on the rise, particularly in unregulated casinos that favor cryptoassets, according to the Commission. But such venues have become fertile ground for organized crime, using anonymity tools like VPNs to sidestep regulatory eyes. But this comes as the UK government injects £26 million over three years for the Gambling Commission to crack down on illegal markets. On top of this, casinos providing Money Service Business (MSB) functions—such as foreign currency exchanges—present another ML risk. Around 3% of remote casino and 56% of non-remote casino licence holders engaged in MSB activities, amounting to roughly £70 million in 2024. Indicators of misuse include multiple small transactions and dealings with high-risk jurisdictions.
Next Steps and Industry Impacts
the market is fraught with challenges, but the Commission is set on strengthening its defenses. The next steps involve continuous monitoring and further regulatory tightening. Still, eyes will be on the Commission as it implements its strategic plan for combating ML/TF, with particular attention on white-label partnerships and illegal gambling networks. The industry is watching closely as these developments could reshape operational landscapes in the coming months.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
