chapter  7
14 Pages

E-gaming and money laundering risks: a European overview

ByMichael. Levi

This chapter examines the fraud and money laundering risks that arise in the regulated e-gaming sector and describes the kinds of measures taken by the sector itself against such risks. It looks at the money laundering risks within the perspective of the size of the on-line betting and gaming industry. On-line gambling accounts for some 5% of global Gross Gaming Revenues (stakes minus winnings). European players constitute around half the global market for on-line gaming (excluding lotteries). Online gaming companies licensed in the EU have chosen to comply with the EU Directives for the prevention of money-laundering, the third of which—strictly speaking—applies only to casinos within the gaming sector. Laundering controls may be demarcated into 'front end' controls such as customer identification and 'back end' controls that may be deduced from patterns of trading and other aspects of the conduct of accounts.