Why Online Gaming and Sportsbetting Operators are exposed to financial crime risk
Online gaming and sportsbetting operators are attractive to organised criminal networks because they facilitate high volumes of transactions across numerous accounts and jurisdictions, enabling the rapid movement, layering, or integration of illicit funds through activities such as account funding, bonus abuse, matched betting and cash-out mechanisms.
The complexity of modern gaming products such as in-play betting, virtual markets and third-party payment channels combined with high account turnover can further obscure source of funds and beneficial ownership. To mitigate these risks, it is essential that online gaming and sportsbetting operators maintain a robust, enterprise-wide money laundering, terrorism and proliferation financing risk assessment framework.
By systematically identifying and assessing their exposure to financial crime risks and by evaluating the design and operational effectiveness of their mitigating controls in a manner appropriate and proportionate to their nature, size, and complexity, they can protect players, meet regulatory obligations and safeguard their reputation and long-term licence integrity.
For Money Laundering Reporting Officers (MLROs) and senior compliance leaders in this sector, the challenge is no longer simply to satisfy minimum regulatory obligations it is to demonstrate a deep, defensible and evidence-based understanding of financial crime risk that withstands regulatory review, supports investment and client acceptance decisions and drives proportionate, risk-aligned control execution.
Arctic Intelligence’s ML/TF/PF Risk and Control Assessment Solution has been developed specifically for Online Gaming and Sportsbetting Operators. It supports them in meeting regulatory expectations, providing a structured, evidence-based, regulator-ready framework that empowers teams to identify, assess and govern financial crime risk across every line of business.
Why Online Gaming and Sportsbetting Operators are targeted by organised criminal networks
Online Gaming and Sportsbetting Operators are inherently exposed to financial crime risk for several reasons:
- Digital Delivery and Remote Onboarding: With no physical presence, online operators rely on digital onboarding, which often increases the risk of identity fraud, synthetic identity usage and weakened verification.
- High-Velocity Fund Flows: Players fund accounts, withdraw winnings and transact rapidly, often across multiple payment methods and currencies, creating complex transactional data flows that can obscure suspicious activity.
- Cross-Border and Multi-Jurisdiction Exposure: Online platforms routinely service customers from multiple countries, requiring operators to consider varying regulatory standards, geographic risk factors and sanctions screening obligations.
- Third-Party Payment and Wallet Integrations: Use of e-wallets, crypto or third-party payment processors introduces new pathways for illicit funds to enter, circulate and exit gaming platforms if not carefully controlled.
- Anonymous and Pseudonymous Activity: Unique to digital channels, pseudonymous accounts create challenges in authenticating users, linking identities and detecting layered laundering patterns.
Taken together, these features make Online Gaming and Sportsbetting Operators a primary target for organised criminal networks and place enterprise-wide, evidence-based ML/TF/PF risk assessment at the centre of regulatory expectations.
Introducing Arctic Intelligence’s ML/TF/PF Risk and Control Module for Online Gaming and Sportsbetting Operators
Arctic Intelligence’s Online Gaming and Sportsbetting Operators Risk and Control Module provides a comprehensive and configurable foundation for conducting robust ML/TF/PF risk assessments tailored to this sector. This module helps you:
- Identify and Prioritise ML/TF/PF Risks: Using a sector-relevant risk taxonomy, the module guides you through identifying the highest-impact risk areas including customer segments, VIP programmes, cash operations, junket relationships and cross-border exposure.
- Assess Controls and Operational Effectiveness: Better than static checklists, the solution enables you to map controls to risks, test their design and evaluate their performance in practice. That means you can show, with data, that your controls are working as intended.
- Calculate Residual Risk Transparently: Residual risk is the real measure of your exposure. Arctic’s module automatically aggregates risk indicators and controls effectiveness to produce defensible residual risk ratings — providing a clear link to risk appetite and governance outcomes.
- Produce Audit-Ready Documentation: Regulators increasingly focus on the why and how of risk assessments. With built-in audit trails, version history and aggregated reporting.
This solution embeds sector knowledge, regulatory best practices and global risk methodologies into a configurable, scalable risk and control platform.
The built-in audit trail, review logs and Board-ready reporting support stronger oversight and governance while making risk outcomes digestible for executives and boards.
Who does this module apply to?
The money laundering, terrorism and proliferation financing risk and control module contains a library of risks, controls and control tests designed specifically for different types of Online Gaming and Sportsbetting Operators:
| Betting Exchange Platforms | Online Casino Operators |
| Digital Wagering Platforms | Online Lottery Operators |
| Esports Betting Operators | Online Poker Platforms |
| iGaming Companies | Online Sportsbook Operators |
| Mobile Betting App Operators | Pool Betting Operators |
| Integrated Gaming Operators | Skill-Based Gaming Operators |
| Online Bingo Websites | Virtual Gaming Providers |
| Fantasy Sports Operators | Social Gaming Operators |
Companies we’ve helped
Here are some of the companies we’ve helped in this sector:
| Flutter Entertainment | Sportsbet | Entain Group | ||
| Betfair | Betr | Zagames |
Get started with Arctic Intelligence
Whether you are establishing your first enterprise-wide ML/TF/PF risk assessment or upgrading a legacy spreadsheet-based program, Arctic Intelligence’s Online Gaming and Sportsbetting Operator Risk and Control Module is a scalable, defendable and configurable solution that meets the needs of modern compliance teams.
Book a demo or contact us to explore how our platform can help your business strengthen compliance, mitigate financial crime risk and build a risk program that stands up to regulatory scrutiny. Or visit our website to learn more.
