How Online Casinos Handle Player Verification and AML Compliance

Do you know that online casinos are constantly facing the risk of money laundering, terrorism financing, and other financial crimes? Well, online casinos need strict measures to curb financial crimes as they handle large sums of money, and the ease of accessing financial services makes these platforms convenient for criminals looking to conceal their source of income. However, casino regulators are constantly setting strict anti-money laundering (AML) regulations to deter criminals from using these platforms for criminal activities. 

While these AML regulations are constantly evolving, casinos need solid internal controls and reporting mechanisms to avoid the consequences of non-compliance. Here’s an overview of how online casinos are handling player verification and AML compliance in 2025. 

Which Anti-money laundering risks are online casinos facing?

Online casinos are susceptible to money laundering, tax fraud, and terrorist financing. That makes anti-money laundering compliance crucial for operators to avoid reputational damage, legal proceedings, and fines. 

According to the Financial Action Task Force, online casinos are non-financial businesses, and operators must implement AML compliance measures like other financial institutions, such as banks and micro-finances.

In online casinos, money laundering typically features three stages, including:

• Placement: The criminals introduce illegal money to the online casino by depositing the funds into their accounts.
• Layering: These criminals transact with the casino to hide the origin of the money. That might include betting at minimal risk, multiple chip exchanges, or transferring the money between different accounts.
• Integration: They cash out the winnings through casino cheques or other banking methods like e-wallets and mobile banking.

Key anti-money laundering regulations for online casinos

Anti-money laundering regulations for an online casino like Betway are managed by global standards set by:

• European Union AML directives for online casinos operating in the EU.
• The Financial Action Task Force sets international AML regulations.
• Asia-Pacific group (APG) – oversees anti-money laundering programs for online casinos in the Asia-Pacific region.
• FinCEN and US Bank Secrecy Act – Sets AML regulations for online casinos in the US.

AML Obligations for Online Casinos in 2025

Different regulators have compiled a set of AML regulations that legal online casinos operating in their jurisdictions must follow. These regulations include: 

Customer Due Dilligence

Customer due diligence helps operators like Betway to verify the identity of their players before facilitating any financial transactions. These regulations require the operator to confirm personal information like official name, date of birth, country of residence, and ID/ passport number. It also helps the casino assess risk exposure that every player poses by considering factors like transaction pattern, country of residence, and connection to high-risk industries like banking. 

Transaction monitoring

Transaction monitoring assists online casinos in detecting unusual gambling behavior and patterns suggesting money laundering. As such, online casinos continuously track high-value transactions, unusually large deposits, rapid cashouts, and structured deposits formulated to avoid detection.

Enhanced due diligence

Enhanced due diligence targets high-risk customers and involves additional verification steps. That includes politically exposed individuals whose position might increase the risk of financial crimes.

Suspicious activity reporting

Online casinos are required to report suspicious activities to the financial intelligence units when an unusual transaction or behavior appears. These casino reports must be timely and detail all the relevant information about the player, underlying transactions, and other red flags observed. Failure to file these suspicious activity reports can lead to serious legal consequences, regulatory penalties, and reputational damage.