Variants of this cash-in, cash-out tactic may include dividing the money into several smaller betting accounts, or asking for the withdrawn credit to be made available in another jurisdiction. After transferring USD 250,000 of embezzled funds to a gambling account, he purchased a USD 10,000 casino marker, lost USD 1,000, and withdrew the remaining funds. In 2006, a Virginia lawyer was sentenced for laundering USD 250,000 this way at the Taj Mahal Casino in Atlantic City. The most common way to launder money through a physical or online casino is to simply convert dirty money into chips or an electronic balance, gamble for a short period of time, then cash the funds out. The methods criminals use to launder money through the gambling industry are sometimes sophisticated, but usually very simple. So how are criminals exploiting this industry to launder the proceeds of their crimes, and how can they be stopped? This guide briefly explains a few common methods used by criminals to launder money through the gambling industry, and how governments can increase their ability to prevent and detect it. Similarly, the Cullen Commission report paints a stark picture of the enormous amounts laundered through the gaming industry in British Columbia, Canada. For example, the Crown Casinos in Melbourne and Perth, Australia, are facing allegations that hundreds of millions of dollars were laundered through their casinos between 20 via “junket” programmes in which the casino and tour operators facilitated a period of gambling by high-roller players from foreign jurisdictions. The extent to which this occurs, however, can still come as a shock – especially in countries with supposedly strict AML measures. The fact that criminals can exploit this industry to launder money isn’t exactly a revelation. In 2021, the global gambling industry generated record-breaking revenues, hitting USD 261 billion in the US and EUR 87.2 billion in Europe. Moreover, it’s a big industry that’s growing exponentially. It includes a wide variety of businesses that juggle large transactions (often in cash) at a rapid scale, such as physical casinos, online casinos, bars and clubs housing poker machines, and both physical and online sports betting services. The gambling industry is perfect for laundering criminal funds. Isys Lam, Junior Legal Researcher and Andrew Dornbierer, Senior Asset Recovery Specialist

Money laundering through the gambling industry

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