What We Need to Know About Casino Mistakes?

Blog / What We Need to Know About Casino Mistakes?

Casinos are one of the industries most at risk of money laundering. One of the biggest reasons criminals choose casinos for money laundering is that many casino businesses do not comply with existing money laundering procedures and do not carry out the necessary controls. This article has discussed the most common casino mistakes and the casino scandals that these mistakes have caused. 

Casino Scandals 

William Hill 

The gambling industry regulator fined betting Group William Hill £ 6.2 million in August 2016 in line with the Gambling Commission's decision for protecting consumers and failing to prevent money laundering. 

The bookmaker William Hill was previously fined £ 888 7.8 million for failing to protect its customers. Also, he stated that due to William Hill's management and staff's failure, 10 customers made deposits linked to criminal offenses, resulting in approximately £ 1.2 million for the group. 

Paddy Power 

Another name in the Gambling Commission's report is Paddy Power. According to the report, bookie poddy power encouraged a troubled player to keep betting, causing the player to lose his job, home, and even access to his children. 

Also, company controls were insufficient to ensure that customers did not use their betting machines to launder criminal proceeds. Paddy Power had to pay £ 280,000 for all of this. He was obliged to review the procedures established to prevent money laundering and casino mistakes and declare his shortcomings and failures to the entire industry. 

What Are The Most Common Casino Mistakes?


Insufficient Identify Verification

Identity verification is one of the most critical steps used in detecting fraudsters for those involved in casino services, as in any financial institution. To perform identity verification processes automatically and quickly, a system compliant with the legislation, correct and compatible, should be adopted. Authentication instructions can be specified to be more than one.

Therefore, company employees should have sufficient information on this subject. For example, what should the user be asked before creating a user account? How should the obtained information be processed? Such information is critical. 


Insufficient Funding Source Controls

Source of funds (PoSof) checking is an issue casinos often fail. In contrast, funding control is a serious AML violation. They continue to allow customers to gamble without checking the validity of the documents received. This situation constitutes a major obstacle for casinos to reach the source of the money they process.


The first and foremost thing that casinos have to deal with should be determining the customer's money source. In this way, they can detect fraudsters who have deposited funds obtained illegally and eliminate the risk of money laundering crime. Getting the funding source (PoSoF) right after the first customer registration is of great importance in determining your business's risks. 


Poor Ongoing Monitoring Process

Many businesses offering casino services stop observing customers after their first deposit. In comparison, customers should be monitored continuously. Ongoing monitoring continues to track a client throughout the process from their first transaction until they leave the casino. Thus, businesses can quickly take the necessary measures against a possible money laundering activity.


One of the biggest AML breaches that casino businesses make in their ongoing monitoring process is that they do not investigate customer transactions and the source of funds. 

The best example on the subject is the online gambling business called Daub Alderney. Daub Alderney has made a name for itself as a casino that has been fined £ 7.1 million for failing to comply with Gambling Commission rules aimed at preventing money laundering and protecting vulnerable consumers. 


Not Implementing Know Your Customer Processes

Gambling may sometimes become more than just a hobby. If gambling has turned into an addiction, things become different and difficult than expected. If customers constantly lose money or lose their property or business, this situation causing the casino to become a criminal. Even, Casinos may subject to substantial fines because of this. 

Therefore, a casino business must establish restrictions and prevention against customers' addictive behavior. This is why it is essential to determine the customer funding source during participation. By determining the fund source, it can be predicted from which source the customer will spend money. 


The Importance of Enhanced AML Compliance Solutions

Increasing financial crime risks with the spread of gambling and gambling industries require businesses to be more careful. Casino businesses need to comply with current AML regulations and avoid criminal offenses that are getting more severe with each passing year. The safest way to comply with regulations and avoid penalties is to have advanced AML compliance solutions. Thus, businesses can be aware of possible money laundering risks and take necessary measures against these risks. 

Sanction Scanner offers the most suitable AML solutions for the needs of businesses. Through these solutions, businesses can easily implement AML procedures and create their own AML policies. You can review our AML compliance solutions and contact us for more. 

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