How Money Laundering Works In Online Gambling


Posted: October 7, 2020

Updated: October 7, 2020

  • The gambling industry has always been quite attractive to certain segments of society especially criminal ones.
  • Currently, the number of illegal transactions carried out using land-based and online casinos is increasing every year.
  • Let’s look at how money laundering works in online gambling.

The gambling industry has always been quite attractive to certain segments of society especially criminal ones. Unfortunately, thanks to gambling establishments, they managed to launder large amounts of illegally acquired funds. Currently, the number of illegal transactions carried out using land-based and online casinos is increasing every year. At the same time, the methods of money laundering are improving, as are the methods of combating them. Let’s look at how money laundering works in online gambling. This information will help you choose reliable and trustworthy casinos.

Why are casinos the most attractive for money laundering?

It should be understood that land-based casinos are extremely attractive in this regard. However, they also lose their attractiveness since the regulatory authorities are not sleeping. But even with such strict control, there are plenty of people who want to get make money in this illegal way. So why do they choose a casino and not a grocery store or construction firm? It’s all about the turnover of funds.

Additionally, these people mainly launder cash. And the best place where you can quietly launder a couple of million evergreens is hard to find. However, in the money turnover of some casinos, this amount will become invisible. With a casino, on the one hand, everything is simple, on the other, everything is complicated. Here the inspection bodies may ask: where does the establishment get the money to pay out the winnings? Indeed, it is quite a long business to check the accounting in a casino and, if you try, you can confuse everything.

However, this was the case before the active usage of computers. Now we live in a digital world. For example, each slot machine has a saved copy of winnings and losses, and there is a video recording on roulette or blackjack. And in general, an accurate record of all funds and winnings paid is present. But even with such a harsh reality, there are schemes and they are used. But how money laundering works in online gambling? Let’s find it out to learn how to pick trustworthy online casinos in the USA.

How money laundering works in online gambling

In general, here laundering schemes are similar to those with land-based casinos, but more complex due to stricter control of the inspection authorities. You have probably wondered: “Why does an online casino transfer winnings to the payment system with which the account was replenished?” The main reason is the requirement of the control service for the laundering and legalization of criminal proceeds. That is, if you decide to deposit with “dirty money”, then you will return the same essentially dirty money.

How Money Laundering Works In Online Gambling
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Schemes of money laundering

But we know that money is still being laundered on a fairly large scale! So how do they do it? As an example, we will cite one high-profile scandal in which the Italian mafia and the Malta online casino licensing organization were involved. The essence is as follows. The comrades from Cosa Nostra thought about how to wash their hard-earned money. At the same time, they did not want to repeat the path of Al Capone. And then one rather young and perspicacious member of the group decided to offer to launder through the network of bookmakers.

Note that it was at this time that the peak of sports betting in Italy occurred. A company started to operate which obtained a gambling license in Malta. Note that they also obtained a gambling license from Italy. However, due to some subtleties, all financial flows were made precisely through Malta. As time passed this business flourished. The scheme was as follows. A person came to the bookmaker company and put cash, which was credited to his online account.

Thus, in case of a win, the player took the cash. Sometimes the right person came with a bunch of cash and put the money on the game account. Money could already be withdrawn outside Italy, for example, in same Malta. On the company’s account, all the players’ accounts were combined into one, where it was unrealistic to single out the bets of different people. Therefore, distinguishing “clean” and “dirty” money is impossible.

How money laundering works in online casinos

At some point, especially sophisticated journalists began to find out how it happened that a rather successful company somehow paid little taxes. And everyone only benefits from it! Unfortunately, the journalist who came quite close to disclosing this scheme died. However, then the Italian police got down to business and surprisingly brought the case to its logical conclusion! This is how money laundering works in online gambling. Therefore, be careful and try to play only in reliable online casinos in the USA.

The bottom line is pretty funny. After the reliability of Malta’s gambling license was questioned, several large operators threatened to withdraw their assets from the territory of the state. And, right away, the licensor disowned the company, which everyone associated with money laundering, and fired several employees. And that’s it as if reliability and honesty came back. The Italians, by the way, also said that it was just a mistake. Learn about Five More Ways to Spot a Scam Casino Site. And if you don’t want to waste your time on scammers, start gambling in the Bovada Casino right away.

How Money Laundering Works In Online Gambling
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Money laundering with cryptocurrencies

Another way to launder dirty money through online casinos is to use bitcoin. Here it is necessary to clarify that there are online bitcoin wallets with a dynamic address. That is, the deposit is made from one wallet number, and the funds are transferred to another wallet number. By the way, it was quite official. Accordingly, the scheme is very simple. The scammers make a deposit in an online casino with a bitcoin wallet. Later, the right person confirms the withdrawal. Further, as soon as the funds enter the bitcoin wallet, they are moving to the cryptocurrency exchange. This is how money laundering works in online gambling.

In general, cryptocurrency is a rather favorite way to launder income obtained in dubious ways. That is why the top crypto-exchanges pay very much attention to this aspect and may well block the account if there is a suspicion of money laundering. Of course, it is worthwhile to understand that speaking about money laundering in casinos, we mean quite impressive amounts of several million dollars. Therefore, if you are engaged in money laundering on a smaller scale, no one will pay their attention to it.

For example, players quite often use this scheme. They deposit 100 USD from Webmoney and withdraw to Qiwi. This scheme does not always work and not in all casinos. It’s hard to call such actions as money laundering. However, if the payment of a deposit is not yours, then congratulations, you are a beginning gangster. And as you have heard from the stories above, such actions will be noticed by special authorities. The punishment won’t wait. Therefore, we suggest you gambling legally in the Bovada Casino.

How do casinos fight money laundering in online gambling?

The licensing authority fights against illegal money transactions in online casinos and land-based gambling establishments. It is this organization that has to identify, suppress, and report where it should be in case of violation. The simplest but most effective way is the requirement to withdraw funds to the payment system with which the deposit was made. Further, the licensing authorities oblige the casino to separate the players’ funds and their funds.

This contributes to more detail and prevents accidental blurring of dirty money in the bulk. However, in most cases, the licensing authorities simply shift this responsibility to the casino. That is if something happens, the organization has nothing to do with it. The casino is to blame for everything. At the same time, the licensor regularly checks the establishments. Now you know how money laundering works in online gambling. To protect yourself and your funds learn How to Avoid Gambling Scams and How to Detect Them. If you don’t want to meet scammers, just choose a reliable casino like Bovada. Good luck and gambling safely!

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