Globalisation vs AML Regulation in the Gambling Industry

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This article was first published in the ICLG to: Gambling 2020

We are pleased to share that Andrew Tait and Michelle Walsh recently contributed to a chapter on 'Globalisation vs. AML Regulation' in the sixth edition of the ICLG (International Comparative Legal Guides) Gambling 2020 guide.

The guide covers common issues in gambling laws and regulations – including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement and liability across 39 jurisdictions.

Chapter introduction

Globalisation is increasingly inevitable from both the operator and customer perspective.  To continue to grow and scale their businesses, both online and land-based operators typically look to new geographical markets.  Even operators solely operating in one jurisdiction are open to foreign customers playing at their premises (i.e. resort casinos) or sites within the jurisdiction whilst utilising funds derived from abroad.  Traditional land-based operators via partnerships with online specialists can now provide an internet version of their offering and, through white label arrangements, can benefit from revenue share from those customers returning home or simply travelling and playing online.

Mobile gambling customers are able to use any time, any place devices and technologies, plus globally accessible payment systems to play in multiple jurisdictions where they have accounts.  The Internet, by definition, promotes a global work-and-play culture, driving the increasing shift from land-based to online, and now mobile gambling from anywhere in the world where it is legally possible to do so.

This globalisation of the gambling experience is conflicting with the changing global regulatory landscape.  Over the past 10 years, there has been a rapid acceleration from .com type regulation (suited to globalisation) out of the traditional offshore jurisdictions of the Isle of Man, Malta, Gibraltar, Curaçao and Alderney to country-specific licensing and a fragmented gambling and associated AML regulatory environment.  Operators now need to worry about specific AML compliance in the increasing number of jurisdictions they are seeking to be licensed in and/or the effects of, and risks brought by, globalisation for any of the existing licences they may have.

It is therefore worth exploring how globalisation affects the operators’ battle to comply with AML requirements, the trends in this phenomena and suggested solutions for keeping ahead of the curve.  We will endeavour to do this, where our focus here is on AML rather than counter-terrorist financing.

Click here to read the full version of this chapter or click on the thumbnail below to download the PDF copy. 

Andrew Tait

Andrew Tait Consultant Solicitor

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