How Effective Is the Gambling Commission in Preventing Money Laundering in the UK?

_{A Gambling Commission compliance officers review casino operations as part of the UK's effort to prevent money laundering. (Image: ZUMA Press Inc / Alamy)}

The Gambling Commission (GC) plays a vital role in ensuring a fair gambling environment in the UK. A large part of such effort is maintaining strong anti-money laundering (AML) and counter-terrorist financing measures.

The GC oversees a supervised population of 247 firms, predominantly remote casino operators, alongside land-based casinos, and GC’s enforcement officers discussed their efforts to fight money laundering.

According to a recent report by HM Treasury, during the reporting period (2023/24), the GC conducted 32 desk-based reviews (DBRs) and 8 on-site visits.

Compliance rates showed 50% of assessed firms adhered to regulations, with 25% of firms identified as non-compliant.

GC Focused on High Risk of Money Laundering in Remote Gambling  

The GC's November 2023 risk assessment focused on the risk of money laundering in remote gambling, but the principles and findings also apply to land-based operations.

Within the supervised population, 97 firms were classified as high risk. The GC issued seven financial sanctions exceeding £9 million, primarily targeting those high-risk businesses.

GC Offers Clarification on AML Report  

A spokesperson for the Gambling Commission said, “The Gambling Commission is the regulator of gambling in Great Britain, and we are the supervisory authority for casinos under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).  

“Remote and non-remote casinos operating in Great Britain are captured by the MLRs. Other gambling operators are not captured by the MLRs, although they are regulated by the Commission and are subject to other legal duties, including those from the Proceeds of Crime Act 2002 and the Terrorism Act 2000." adds the spokesperson.

“Every year His Majesty’s Treasury (HMT) collects information from supervisors (including the Commission) regarding their activities as supervisors under the MLRs. For the Commission, such information only relates to our activities supervising casinos, because they are the only gambling sector captured by the MLRs.

“The eight on-site visits quoted in the report only relate to land-based casino premises that were assessed in the relevant period. In the same period, we will also have conducted compliance assessments at other premises, but they are not in thIn addition, we have assessed other remote licensees, but they are not casinos and are not covered by the HMT report.  

“Our programme of assessment activity is risk-based. The supervised population of 247 quoted in the HMT report, and the number of gambling operators differ because the HMT report only focuses on our activity as a supervisor under the MLRs, which only includes casinos.”  

Engagement With the Gambling Commission is Solid 

The GC actively communicated AML/CTF guidelines and compliance updates through various platforms, including their dedicated AML hub, industry meetings, and targeted emails. 

With an average of 1,407 monthly hits to their online materials, there is a solid level of engagement with the sector, ensuring businesses, including land-based casinos, are informed about compliance expectations and updates. 

The GC's active engagement in information sharing with law enforcement and other regulatory bodies reinforces its role as a critical supervisory authority in the broader fight against financial crime. The GC demonstrates effective regulation in preventing money laundering in the UK gambling sector, including land-based casinos.