Though many players still are quite not sure what it means, the UIGEA definitely represents the disdain U.S. lawmakers have for online gambling. One of its biggest gripes is that internet gambling is an activity that can act as a vehicle for money laundering. While this is a genuine concern of sorts, it really holds no water as money laundering has been directly tied to various land-based casinos and sports betting operations. In fact, the golden days of Las Vegas were infamous for this type of activity. Today, the gambling industry has changed dramatically as many laws and preventive measure have been implemented to keep money laundering away from the business. Does the same hold true for online gambling?
According to the RGA (Remote Gaming Association), the online gambling industry isn’t the haven for money laundering that many think it is. With the aid of MHA Consulting, the RGA released a new report and stresses that there have been no definitive examples of money laundering occurring within licensed online gambling jurisdictions. On the other hand, hearing this news from the RGA should be no big surprise, especially when considering that it is a trade body for several leading online casinos and software developers. Because of this, it is natural that the organization would be doing everything possible to distance the industry from money laundering.
The truth of the matter is that the RGA didn’t have to cover up much of anything for this particular report. How can we be so sure? Well, MHA Consulting came to conclude that statutory and self regulation have both played a major role in dramatically reducing the number of documented money laundering incidents in jurisdictions that license internet casinos. In addition, the report also concluded that online gambling is not particularly vulnerable to money laundering activities. Other than the lack of documented cases, these findings were attributed to the actual makeup of the online gambling industry itself. Since the transactions are processed electronically, all betting activities are recorded and analyzed, and the identities of all gamblers are known, the industry makes itself transparent for investigations and comprehensive audits. The information used in the RGA’s report was complied by reviewing bodies in European licensing jurisdictions, which are more open about online gambling than any other in the world.
click here to see most Popular PagesThe big story is that both the RGA and MHA Consulting have drawn the conclusion that the online gambling industry is in the clear for now. However, the report also gives indication that the industry needs to remain proactive in the area of detecting and preventing the threat of money laundering. To help achieve this, online casino operators should only work with licensing jurisdictions and stay aware of the advanced tactics being employed by the more sophisticated money launders. Because the industry is still relatively new with equally new regulations, it is imperative for casinos to work together to keep the criminals away from the industry.
