What Are Financial Crimes in Casinos?

Money laundering is the legal process of embezzling money obtained through illegal means. There are many ways of money laundering. Financial institutions are exposed to various money laundering activities during their year. Casinos are one of the industries with the highest risk of money laundering. In this article, we have compiled the relationship between casinos and money laundering for you.

In summary, the definition of a money-laundering system from casinos is to buy chips from the casino with the cash in hand and to receive checks in return for the chips when you go to the casino again without gambling after a certain period of time. These checks can be used for any purchase of goods after they have been deposited in the bank.


Legal and Illegal Casinos

There is legal gambling in many countries of the world. The fact that gambling provides significant income to governments and community groups is one of the main reasons for the spread of legal gambling. The fact that gambling provides significant income to governments and community groups is one of the main reasons for the spread of legal gambling. Legal casino sites are also obliged to tax the state of the country where they are located.

However, considering the impact of gambling on crime, the social costs of legal gambling offset these benefits, according to the critic. Studies prove that casinos are more of a crime in the surrounding communities. Besides, more than half of the gambling addicts resort to crime and fraud to satisfy their addiction.

On the other hand, an Illegal casino is a bet that is played illegally without permission without being subject to a license/license based on the authority granted by law. Illegal casinos’ money laundering activities cause great damage to states, societies, and organizations. Also, people who play illegal gambling or provide opportunities are sentenced to 3 to 5 years in prison.

Understanding Casinos Crimes 

There are various types of gambling crimes such as theft, illegal corruption of slot machines, and cheating at gaming tables. However, one of the most common casino crimes is replacing casino chips with coating or loading. Skinning or top loading chips are revealed when participants add additional chips to an original bet after announcing the winning hand.

On the other hand, Casinos perform many financial transactions such as opening credit, safe leasing service, fund transfer, or checks’ endorsement. Money launderers place huge amounts of cash in the casino and can withdraw or transfer the money with casino checks whenever they want, without generating any reports.

Prevention Money Laundering in Casinos

Financial institutions and casinos have important responsibilities in combating money laundering and financing of terrorism. Businesses should establish legislation and regulations that comply with the various regulations under AML / CTF in order to combat financial crime stably and effectively. They should carry out controls in line with these regulations and report any money laundering activities that may be encountered to the authorized institutions by making regular risk assessments. Administrative market penalties that will jeopardize their reputation are imposed on businesses that do not implement the necessary controls.

The POCA and 2017 Regulations, which have been uploaded to prevent and detect money laundering, contain decisions that casino businesses are obliged to comply with. Failure to comply with these decisions has certain criminal offenses. Casinos need to some preventions for money laundering risk activities such as;


  • providing regular inspections and controls by developing appropriate aml systems
  • an effective Risk-based approach should be adopted against a potential crime risk
  • performing Know Your Customer and Customer Due Diligence checks thoroughly and regularly in order to identify Customers’ relationships with money laundering
  • establishing guidelines, procedures, and reports for Risk Assessment


With the spread of gambling and gambling industries, financial crime risks have also increased. Casino businesses must comply with FATF and other AML / CTF regulations and regulations. Failure to comply with these regulations may be subject to financial penalties.

Complying with global and local AML compliance regulations enables businesses to manage their KYC and CDD processes more easily. Easily manage your business’ AML, KYC, and CDD compliance processes.


December 2020, published on Sanctions Scanner

Recent Posts