AML in the gambling industry: what you need to know

The gambling industry is facing growing attention from regulators worldwide. With billions in daily transactions and a mix of digital platforms, cross-border players, and fast-moving funds, it’s a natural target for money laundering risks. Regulators are now acting decisively when controls fall short.

In the UK, one gambling group was fined £3.8 million after the Gambling Commission uncovered “significant social responsibility and money laundering failures.” 

In Sweden, a large payment provider processing gambling transactions was fined SEK 130 million for AML deficiencies.

For gambling operators and their financial partners, the message is unmistakable: AML compliance must be proactive, structured, and technology-driven to withstand regulatory scrutiny.

Why gambling faces a high AML risk

Gambling platforms offer speed, anonymity, and liquidity - qualities that also make them appealing to criminal networks looking to move or disguise illicit funds. 

Weak controls in even one part of the system can create openings for abuse.

Criminals may exploit gambling services to:

• Deposit illicit funds across multiple accounts or operators.
• Collude in games (such as poker) so one account “wins” laundered money.
• Withdraw winnings into bank accounts as seemingly clean funds.
• Use high-odds bets or virtual gaming tokens to mask criminal proceeds.

With large transaction volumes and diverse user profiles, effective monitoring is vital. 

Robust AML controls protect not only compliance obligations but also the credibility and long-term sustainability of the gambling sector.

The consequences of weak AML controls

When AML frameworks fail, the impact extends beyond fines. Regulatory action can disrupt operations, erode stakeholder confidence, and inflict lasting brand damage.

Consequences include:

• Regulatory fines: Gambling companies paid approximately £44 million in penalties in 2020, a 175% increase from the year before.
• License suspensions: Some operators have had their licenses suspended entirely, halting business overnight.
• Reputational damage: Public enforcement cases diminish trust among players, investors, and partners.

Helen Venn, Executive Director at the UK Gambling Commission, mentioned: “All gambling businesses should pay close attention to this case.”

For operators, the cost of prevention is always lower than the cost of regulatory failure.

How gambling companies and payment providers can strengthen AML

To meet evolving expectations, gambling firms and payment partners must embed AML processes into every stage of the customer and transaction journey. A strong compliance framework balances automation, vigilance, and continuous improvement.

Key measures include:

• Robust KYC and onboarding: Verify customer identity thoroughly at registration and re-assess periodically. High-risk customers require enhanced due diligence.
• Ongoing monitoring: Identify unusual betting or transaction patterns, such as frequent small deposits, rapid transfers, or collusive play.
• Automated transaction monitoring: Use tailored rules and real-time analytics to detect anomalies specific to gambling, such as high-frequency bets or large cash-outs.
• Collaboration with regulators: Maintain transparency, report issues promptly, and demonstrate an open compliance culture.

By integrating these steps into daily operations, gambling firms can reduce exposure and strengthen the trust that underpins their relationships with regulators and customers alike.

Case in point: payment provider exposure

The Swedish Financial Supervisory Authority fined a major payment institution SEK 130 million for AML deficiencies, citing increased sector risk tied to gambling exposure. This case underlined that AML responsibility extends far beyond gaming operators themselves. It includes banks, PSPs, and payment processors that enable gaming-related flows.

Any financial partner connected to gambling activity must therefore ensure that screening, transaction monitoring, and escalation processes meet the same standards expected of licensed operators.

How Trapets helps gambling companies stay compliant 

Trapets’ AML solutions helps gambling operators and their financial partners to detect, prevent, and respond to financial crime risks in real time. The solution combines automation, analytics, and case management designed for high-volume, high-risk industries.

With Trapets, you can:

• Automate onboarding and screening with built-in KYC and PEP/RCA checks.
• Monitor transactions continuously using alerts tuned to gambling-specific patterns.
• Configure custom triggers for risk scenarios such as rapid deposits, bet collusion, or unusual payout behaviours.
• Leverage managed services through Trapets’ Managed Services for firms needing additional capacity or expertise.

The result is a compliance function that scales with your business, minimising risk while preserving operational agility and customer trust.

The future of AML in gambling

Across Europe, regulators are moving towards stronger enforcement and harmonised standards.

Future compliance will depend on real-time data, automated risk assessment, and transparent governance. Firms that view AML as an enabler of trust and integrity rather than a regulatory checkbox will be best positioned to thrive under this new framework.

Adopting modern technology and continuous monitoring now ensures that your compliance efforts remain effective, scalable, and defensible in an evolving regulatory landscape.

Act now

Regulators are watching, but so are customers and partners. Strong AML practices show commitment to fairness, transparency, and responsible gaming.

Protect your license, reputation, and revenue with Trapets’ AML solutions. Book a demo today.