Anti-Money Laundering efforts strengthened across European gambling industry

New Guidelines Issued: The European Gambling Gambling and Betting Association (EGBA) is introducing self-regulatory, pan-European standards to help online gambling operators comply with the EU's anti-money laundering rules. These standards aim to fight against money laundering across Europe. These are not guidelines that are being imposed on operators. Stakeholders have been asked for feedback by the middle of October 2022.

Why Are The EGBA Doing This?

Dr Ekaterina Hartmann, The EGBA's Director of Legal and Regulatory Affairs, EGBA said in Brussels

"We're pleased to present the first ever pan-European industry standards on anti-money laundering for Europe's online gambling sector. Preventing online gambling from being used to hide the proceeds of crime is an important test for Europe's gambling operators – but there's currently very little sector-specific guidance to help operators in their compliance efforts. We hope these guidelines will fill this gap and lay strong foundations for the sector to achieve the highest possible standards in AML compliance.

It's important to gather expertise across the sector, and we invite stakeholder feedback on the guidelines to ensure that, together, the sector can contribute positively and proactively to Europe's fight against money laundering." 

The European Market

While the single market operates across the EU for goods, different countries across the block have very different views and laws on gambling and online gambling. Some countries like Sweden have state-operated monopoly casinos. Traditional casino games in France are not offered at licensed French online gaming sites, but poker and sports betting are. The Netherlands has recently legalized online casinos, while Denmark has closed down a swathe of unlicensed operators. While this can confuse visitors to EU countries, online casino reviews can help gamblers navigate the market and find reputable operators.

In 2020 there were 234 licensed online gambling platforms across 19 of the EU's member countries. They offer online casino and sports betting services to 29 million customers. The members account for 36% of the Gross Gambling Revenue in the European market.

The Risks

Without strict regulation and the right policies, it is possible for casinos, online casinos and betting operators to be used by organized crime gangs to launder money. The publication of these latest guidelines continues the EGBA's commitment to work with the industry to ensure the best practices are followed in the fight against money laundering. Accordingly, it has issued these draft guidelines to help the industry battle against money laundering and terrorist financing.

The draft guidelines include advice to operators on the following areas:

• How to undertake customer and business risk assessments
• Due Diligence around new customer sign-ups
• Cross-operator cooperation and reporting
• What constitutes a Suspicious Transaction and Reporting requirements
• How the relationship between anti-money-laundering and safer gambling works
• The record-keeping requirements for the operators

Who are The EGBA

The EGBA is the Brussel's-based trade association for the EU's online gaming and betting operators. Its members consist of operators who are established, regulated and licensed within its jurisdiction. Members include leading names like bet365, Betsson Group, Entain, Flutter, Kindred Group and William Hill.  They work with regulators at a national and EU level to ensure a well-regulated online gambling market that offers the highest level of consumer protection.

The EGBA says that its work considers the realities of what is offered to consumers via the internet. There is also thought given to ensuring that all stakeholders, including consumers, get what they want fairly. The current proposals are open for feedback from all online gambling operators in the EU, not just those who are members.

Implementation of Anti-Money Laundering Guidelines

The EGBA has asked for industry feedback on the guidelines before they are implemented. Once they are established, members will be asked to submit yearly documentation to the EGBA. The reports will summarise the progress they have made regarding implementing the guidelines. In addition, new guidance and best practices may be introduced as threats change in the future.

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