Betconix conducted a study about crypto gambling websites used for money laundering in the UK
Loopholes in the UKGC's regulations & what they mean for operators and players
An investigation by an iGaming intelligence platform Betconix reveals how online crypto casinos enable money laundering through anonymous transactions — despite strict regulations by the UK Gambling Commission (UKGC).
The study also looks into how crypto-only casinos bypass national restrictions in the UK, how the UKGC regulates operations with Know-Your-Customer (KYC), Anti-Money Laundering (AML) and Customer Due Diligence (CDD) requirements, and what regulations are expected soon.
“Crypto gambling is no longer a niche activity. But it’s still largely operating in the shadows. Our research shows that criminals exploit the speed and anonymity of crypto gambling to launder money across borders — often in plain sight.”
One of the world’s strictest regulators, the UKGC demands full transparency from crypto-only operators. Since most are not ready to provide it, not a single crypto-only casino has been licensed in the UK yet. That’s why operators find loopholes to stay in the game.
Regulators are ramping up action to stop violations. This year, Spreadex, AG Communications and TGP Europe have faced penalties of over £1m ($1.34m) for AML failures. Meanwhile, high-profile incidents, like a sponsorship deal between Everton FC and Stake.com, have pushed regulators to crack down on deceptive marketing tactics.
To avoid fines or losing their licence, operators should:
Assess risk profiles through CDD & regularly report to the licensing board.
Conduct risk assessments for each third-party payment service provider they integrate.
Monitor and report suspicious activity.
Be on the lookout for vulnerable players & report to the UK’s Financial Intelligence Unit when needed.
Use closed-loop payment setups that make crypto transactions easier to follow.
Other key findings:
Crypto gambling is attractive for laundering due to decentralisation, anonymity and quick fund movement
UKGC prohibits direct crypto deposits but allows indirect use through e-wallets like Neteller and Skrill
Offshore platforms exploit licensing loopholes to market unregulated casinos to UK users
Operators face heavy fines for failing to verify player identities and transaction sources
New regulations are coming as a response to AI-driven fraud — including tools that analyse blockchain transactions.
Read the full report at:
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