Betting and gaming operators operate in one of the most heavily regulated industries for anti-money laundering (AML). Regulators see gambling as high risk because of fast money movement, cash equivalents, and the possibility of layering funds through gaming accounts. This article explains how iGaming and casinos can structure AML screening, from onboarding through monitoring, to meet compliance obligations and build trust with regulators.
1) Why gaming firms face AML pressure
Criminals may attempt to exploit gaming platforms by depositing illicit funds, playing minimally, and withdrawing “cleaned” balances. Regulators therefore demand strict customer due diligence (CDD) and enhanced due diligence (EDD) for higher-risk clients. Failures can lead to fines, reputational damage, or even suspension of licenses.
2) Who to screen in gaming environments
- Players: all new customers during onboarding, especially high-value or VIP clients.
- Account holders: individuals controlling multiple accounts, syndicates, or proxy bettors.
- Payment providers and affiliates: third parties integrated into the gaming ecosystem.
3) What to screen for
- PEPs: Politically exposed persons are higher risk due to potential abuse of power or corruption:contentReference[oaicite:0]{index=0}. Identifying PEPs and their relatives/close associates is mandatory for effective risk management.
- Sanctions: UN, EU, US OFAC, UK OFSI, and other national lists must be checked. Any match usually means the relationship cannot proceed.
- Adverse media: News coverage linking players or business partners to fraud, tax evasion, trafficking, or organized crime should trigger escalation:contentReference[oaicite:1]{index=1}.
- Regulatory enforcement: Past fines or disciplinary actions against payment providers or affiliates indicate heightened risk.
4) Risk-based approach in practice
Not every player requires the same level of scrutiny. A risk-based approach aligns the intensity of checks with the risk presented:
- Low-risk: small deposits, domestic players, straightforward profiles. Standard CDD applies.
- Medium-risk: cross-border clients, unusual deposit patterns, higher stakes. More frequent reviews required.
- High-risk: VIPs, PEPs, players in high-risk jurisdictions. EDD steps include verifying source of funds and increased monitoring frequency.
5) Handling alerts and false positives
Gaming platforms generate high volumes of transactions. Screening tools should prioritize strong matches (e.g., name + date of birth) and allow analysts to dismiss weak hits with clear notes. Documenting why a match was ruled out is just as important as confirming a true positive.
6) Monitoring after onboarding
Risk does not stop at registration. Ongoing monitoring ensures that if a player is sanctioned tomorrow, or appears in negative media next week, the compliance team is notified immediately. Continuous monitoring of VIP players and affiliates is increasingly expected by regulators worldwide.
7) Efficient AML workflow for gaming
- Integrate screening into account creation workflows with minimal friction.
- Segment clients by risk and allocate monitoring resources accordingly.
- Retain screening evidence for regulator audits and licensing reviews.
8) Tools to support compliance
StartKYC enables iGaming operators and casinos to screen and monitor clients efficiently. The service provides instant PEP, sanctions, adverse media, and enforcement checks, supported by Tier-1 data. Key benefits include a pay-as-you-go model, 12-month monitoring at the same cost as a one-off search, bulk uploads via CSV, API access for automated screening, and multi-user access with no extra cost. Already trusted by thousands of clients, StartKYC helps operators demonstrate robust AML controls while maintaining a smooth player experience.
With structured AML screening, ongoing monitoring, and clear documentation, gaming operators can protect themselves against regulatory sanctions, build stronger relationships with supervisors, and ensure that compliance supports sustainable growth.