AGA Issues 64-Page Guide to Combat Money Laundering in Sports Betting
The American Gaming Association (AGA) has issued a 64-page guide, offering a roadmap for commercial sportsbooks to combat money laundering risks. This comes amidst high-profile cases and regulatory actions in Las Vegas, including a $10.5 million settlement involving Resorts World Las Vegas.
Money laundering through sports betting is attractive due to its binary outcomes and the option to wager on both sides of an event. The AGA advises converting virtual currency to US dollars before using it at sportsbooks for better anti-money laundering (AML) oversight. This year, the Nevada Gaming Commission resolved charges related to AML deficiencies at three major casinos, with Resorts World Las Vegas facing the second-largest settlement in state history at $10.5 million. Matt Bowyer, convicted for operating an illegal sports betting ring, laundered millions through Resorts World.
Crypto money laundering challenges include structuring payments and evading law enforcement monitoring. Wagering through a 'beard', or placing bets on behalf of an unidentified third party, can also conceal the source of funds. MGM Resorts and Wynn Las Vegas also reached settlements with regulators, with fines of $8.5 million and $5.5 million respectively. The Financial Action Task Force (FATF) published a guideline to improve AML practices in the gambling industry before the Global Gaming Expo in Las Vegas this year.
The AGA's comprehensive guide provides best practices for developing a robust AML framework across the gambling industry. With increased regulatory focus and high-profile cases, casinos are urged to strengthen their AML measures to prevent misuse of their platforms.
