Can People Engage in Money Laundering through Online Slots?
Online slot gaming can be a fun and potentially very lucrative past-time for players and since players had the ability and the technology to play slots from the comfort of their own home and on the go on mobile, tablets and laptops, online slot gaming has been more popular than ever before. However, the fun and exhilarating hobby have also been exploited by some unscrupulous businesses for illegal activities including money laundering.
In 2020, online gambling consists of ⅓ of the entire UK gambling sector, meaning the sheer amount of money which is filtered through online casinos is huge – play now at Bonanza. It is estimated that an unbelievable $1.5trillion is laundered each year, meaning millions of dollars could potentially be being laundered through online casinos each year.
What is money laundering?
Money laundering is an illegal activity which consists of hiding the origins of money which have been gained through illegal activities by “cleaning” the money through a serious of complex bank transfers or transactions. This then leaves the money “clean” as it cannot be traced back to its illegally-obtained origins and is returned back to the money launderer.
Some money launderers try to clean money by depositing huge sums of money into an online betting account and then subsequently place a small wager to mask their activity so their losses are minimal before simply withdrawing all the money. Some try and play it safer by setting up several online betting accounts and deposit smaller amounts to try and avoid being detected and to make the paper trail appear to be completely legitimate.
Money laundering and online gambling
There are robust anti-money laundering legislation and directives which prevent online casinos being targeted and used to launder money, harnessing advancing technologies to stop money-laundering. One of the main reasons why online slot bonuses and promotions are subject to wagering requirements so that criminals can’t simply deposit money obtained illegally and then instantly withdraw the funds.
In order to make online slot gaming safe for all players and to ensure it is not exploited by criminal organisations, it’s integral that online casinos comply with anti-money laundering regime. This can include stringent verification methods to prevent any potential risks, recording and reporting player transactions and ensuring that staff are fully trained to check and report any activity they deem to be suspicious. This is why you may be asked to verify your identity by submitting identify documents to an online casino.
Online casinos are strictly monitored by the regulators and if online casinos don’t make sure they follow these anti-money laundering regimes they risk being hit with penalties and fines of up to €5 million in Europe. In 2018 for example, bookmaking industry giant William Hill received a fine of £6.2million for their “systemic failures” to prevent money laundering on their gaming sites.
Is cryptocurrency risky?
An increasing number of online casinos are accepting alternative currencies such as Bitcoin and they are known for giving players anonymity and ensuring fast and smooth withdrawals and deposits. So there is a worry that these two factors could make money laundering easier. However, with cryptocurrencies, there is a big deterrent as it isn’t straightforward to liquidate cryptocurrency.
