AML Casino Compliance and Responsible Gambling Standards: Global Guide 2025

Whether online or offline, casinos, sportsbooks, and other gambling operators have historically been used for money laundering and other criminal activity, leading many jurisdictions to impose restrictions. Despite this, the regulatory landscape is quickly changing. And since such gambling companies generate millions in revenue, traditionally gambling-averse jurisdictions are starting to change their tune.

Thailand, which has heavily restricted gambling since 1935, is poised to legalize casino resorts under its new Integrated Entertainment Business Bill. In Europe, France aims to allow online casinos in 2025, while in North America, Alberta is working to emulate Ontario’s iGaming model and launch its own regulated online gambling market.

Let’s dive into the peculiarities of AML compliance in gambling and what to do to comply with regulations in different countries.

What is casino AML compliance, and why does it matter?

Casino compliance refers to the legal, regulatory, and operational standards that casinos need to follow to prevent financial crime, ensure fair play, and protect players from the harms associated with gambling. Failure to comply can lead to issues with licensing, developing customer trust, and penalties.

Why an Anti-Money Laundering (AML) program is a top priority for these industries

Gambling has always been attractive to criminals.

In 2009, the Financial Action Task Force (FATF) revised its 40 Recommendations, through an update to Recommendation 14, to include casinos in the list of “Designated Non-Financial Businesses and Professions” (DNFBPs). This formal designation obliged FATF member jurisdictions to strengthen their AML frameworks for the casino sector, introducing enhanced customer due diligence, transaction monitoring, and reporting requirements. Appropriate AML programs are essential for compliance. These are designed to prevent the proceeds of crime from entering the financial system. However, criminals constantly invent sophisticated methods of flying under the radar. A truly effective AML program must therefore be able to withstand new and complex fraud attempts. Otherwise, businesses put themselves at risk of financial and reputational losses.

What AML/KYC requirements apply to casinos and betting platforms in 2025?

Casinos and betting platforms are subject to stringent AML and KYC regulations designed to prevent financial crime and ensure responsible operations. These requirements typically align with  FATF recommendations, the EU AML Directives (including the EU High-Risk Country List), and gambling licensing obligations.. The core obligations of these AML and KYC compliance programs are as follows:

1. Risk-based approach
   Operators must implement a risk-based approach consistent with FATF recommendations, the EU AML directives, and specific regulatory requirements, such as the UKGC, MGA, and FinCEN in the US (depending on jurisdiction). Gambling is internationally recognized as an inherently high-risk industry, so all products and channels demand heightened vigilance by default.
   
2. Customer identification and verification (KYC)
   Operators must verify players’ identities, ages, and residential addresses at onboarding. This may include validating government-issued IDs, conducting biometric checks, and screening for adverse media.
   
3. Ongoing Customer Due Diligence (CDD)
   Before a customer is allowed to bet, they must go through a Customer Due Diligence check. Though not required in some countries, more companies around the world are adopting KYC and CDD practices to protect against fraud. Casinos must continuously assess player risk profiles and perform enhanced due diligence (EDD) for high-risk users.
   
4. Enhanced Due Diligence (EDD)
   In cases of higher risks, such as large or rapid-value transactions, politically exposed persons (PEPs), or signs of problem gambling, companies must apply Enhanced Due Diligence measures. One of the most vital components of EDD is verifying both clients’ sources of funds or wealth to ensure that funds are not derived from illegal activity. Risk factors may also include geographic risks, such as discrepancies between the customer’s stated country of residence, IP address, identification documents, or payment method origin.

5. Transaction monitoring
   Real-time and periodic monitoring tools detect suspicious patterns, such as deposit structuring, the use of multiple payment methods, or unusually high betting activity.
   
6. Suspicious Activity Reporting (SARs)
   If suspicious activity is detected, operators must promptly file a Suspicious Activity Report or Suspicious Transaction Report with the relevant financial intelligence unit (the FIU), in accordance with compliance requirements. Under no circumstances should the subject of the report be notified (tipping-off is strictly prohibited).
   
7. Sanctions and PEP screening
   Platforms must screen customers against updated sanctions lists (e.g., OFAC, EU, UN, HM Treasury) and politically exposed persons (PEP) databases at onboarding and throughout the customer relationship.

Suggested read: High-Priority and High-Risk: What You Need to Know About Politically Exposed Persons (PEPs) in 2025

8. Recordkeeping
   All KYC documents, transaction logs, and SAR filings must be securely retained for the legally required period and made available to regulators upon request.

9. Independent AML audits
   Independent AML audits help businesses identify and address weaknesses in their AML programs before regulatory inspections. Regular, external audits are essential for maintaining compliance and minimizing enforcement risks.

10. Employee training
    If your team isn’t fully aware of AML red flags, reporting obligations, and gambling-specific risks, even the most advanced automated prevention tools won’t be able to protect you from fraud and money laundering. Online casinos and betting platforms should provide the obligatory training to all staff. Staff understanding must be assessed regularly, and training records must be maintained for audit purposes. 

Further compliance requirements for casinos may include:

• Responsible gambling: Preventing problem gambling through player protection tools, including self-exclusion options and behavioral monitoring.
• Data protection: Safeguarding customer data in accordance with local regulations like GDPR and ensuring secure data handling.
• Licensing & regulatory adherence: Seeking licensing for approval and meeting ongoing requirements set by gambling authorities.
• Fair play: Ensuring games are fair and outcomes are provably random, using certified random number generators (RNGs).

Suggested read: KYC for Gambling: What It Is and Why It’s Crucial (2025 Guide)

How do gambling operators detect and prevent money laundering?

Gambling and betting operators detect and prevent money laundering by implementing robust AML programs that meet regulatory standards. This includes performing comprehensive customer due diligence (CDD), verifying player identity, address and source of funds, and maintaining ongoing monitoring of transactions for suspicious activity (such as minimal play with large deposits, rapid withdrawals, frequent deposit and withdrawal cycles, or structured transactions designed to avoid reporting threshold). 

Suggested read: AML Compliance Program: The Essential Guide for 2025

Operators apply a risk-based approach to identify high-risk customers and conduct EDD where required. Automated, real-time transaction monitoring systems and regular staff training support early detection. Any suspicious activity is promptly reported to the relevant financial intelligence unit (FIU) in accordance with compliance/legal requirements.

In short, comprehensive AML programs are essential for gambling businesses to combat money laundering and fraud.

What are social responsibility obligations for gambling operators?

Social responsibility, or responsible gambling, obligations require operators to take proactive steps to protect not only their customers, but also all vulnerable individuals from gambling-related harm. 

This includes safeguarding minors, people with gambling problems, those with disabilities, and other at-risk groups from exposure to gambling. Operators must ensure that appropriate safeguards, education, and support mechanisms are in place. It also means to go beyond mere compliance, promoting a safe and responsible environment that prioritizes players’ welfare and social well-being.

Underage gambling prevention
In many jurisdictions, operators must verify each player’s age and identity at sign-up to prevent underage gambling. Unfortunately, a 2024 report by the Gambling Commission shows that over a quarter of young people in the UK had gambled in the last 12 months. Regulatory requirements and age thresholds differ by jurisdiction: typically 18, but 21 in Greece and most US states, and up to 25 for Maltese residents. 

Behavioral monitoring
Operators must implement behavioral monitoring systems to proactively identify indicators of gambling-related harm or risky behavior, such as chasing losses, escalating bet sizes, irregular or prolonged play patterns, or significant changes in deposit frequency. Detected risks must trigger appropriate interventions, such as account restrictions, mandatory cooling-off periods, or referrals to support services, in line with regulatory expectations.

Player protection tools
Operators must provide at least the basic suite of player protection tools, including deposit and loss limits, session time limits, time-out and self-exclusion features, and reality checks. These tools must be easily accessible, actively promoted to all players, and configurable according to individual risk profiles. Effectiveness should be regularly reviewed through monitoring and testing, with adjustments made to ensure compliance with regulatory requirements and ongoing protection of vulnerable users.

Self-exclusion screening
Operators must offer self-exclusion mechanisms that allow players to restrict their own access to gambling services for a defined period or permanently. In addition to voluntary self-exclusion, operators must be able to impose involuntary self-exclusion when there are indications of problem gambling or when required by law or external requests (such as national self-exclusion registers). All self-exclusion requests must be processed promptly, with accounts immediately blocked and access denied across all platforms. Operators are required to regularly screen their customer base against national self-exclusion registers (like GAMSTOP or MOSES in the UK) and ensure that excluded individuals cannot open new accounts or resume gambling activity during the exclusion period.

Player profiling
Effective player profiling procedures to identify individuals of heightened risk of gambling-related harm must be established. Profiling should incorporate a range of factors, including age, financial situation, gambling history, patterns of play, and relevant social and medical vulnerabilities. Where risk indicators are detected, operators must apply enhanced monitoring, source of funds verification, and appropriate interventions. All profiling activities must comply with applicable data protection and privacy laws, with clear safeguards to prevent misuse or discrimination.

Responsible marketing and advertising practices
Operators must ensure that all marketing and advertising activities are conducted responsibly, in compliance with applicable laws and industry codes. Communications must not target minors, self-excluded or vulnerable individuals, or imply that gambling is a solution to financial or personal problems. All promotional materials should be clear, truthful, and must not mislead or encourage irresponsible play. Where required, operators must implement age-gating, display responsible gambling messages, and observe time or platform restrictions on advertising as mandated by local regulations.

Education and awareness
Operators must implement structured education and awareness initiatives to promote responsible gambling and reduce gambling-related harm. This includes providing clear information about risks, odds, and support resources through on-site messages, pop-ups, and accessible links to support organizations. Operators should also participate in broader public awareness campaigns and, where required by law, support responsible gambling education in schools or community programs.

How do casinos ensure customer data protection and compliance?

Online casinos face risks from criminals attempting to steal unprotected data, as well as from poor internal management and staff turnover. That’s why online casinos must implement appropriate technical and organizational controls to protect player data and minimize unnecessary risk. Many casinos use Information Security Management Systems (ISMS) based on the ISO/IEC 27001:2013 standard. This framework ensures data integrity, availability, and confidentiality, covering everything from network security and access control to backup procedures and supplier risk. Certified operators can benefit from reduced audit requirements in jurisdictions like Spain, Denmark, and the UK.

Casinos are also considered digital service providers and must comply with strict data processing regulations. Operators are obligated to obtain explicit player consent before collecting personal data and sending marketing materials. They must also be transparent about how personal data is shared, including disclosure in cases of suspected criminal activity. Players must be given access to their data and the ability to request corrections or deletion where required by law. 

Given the sensitive nature of financial and personal customer data, operators must uphold robust data security standards. This includes continuous monitoring for breaches, regular vulnerability assessments and penetration testing (at least twice a year), and rapid response to any identified vulnerabilities. If a breach occurs, casinos may be held liable for resulting damages depending on applicable data protection laws. 

How is gambling regulated in different jurisdictions?

• The USA

  In 2018, the US government struck down the Professional and Amateur Sports Protection Act (PASPA). Now, each state can decide whether to legalize betting within its own territory.
  
  Gambling regulation: The Unlawful Internet Gambling Enforcement Act and The Interstate Wire Act are the core federal gambling laws. However, land-based and online gambling regulation is primarily at the state level.
  
  Authority: Each state where gambling is legal has its own regulator (e.g., state gaming commissions). FinCEN supervises AML compliance for casinos as “financial institutions” under the Bank Secrecy Act, but does not license or directly regulate gambling activities.
  
  Age restriction: 21+ (in most states)
  
  Overview: Since 2018, 40 states have legalized sports betting, including 34 that allow online betting. However, iGaming is legal only in seven states. Permitted forms of gambling vary by state. Self-exclusion tools are commonly required, but implementation details differ across jurisdictions.
  
  Check out Sumsub’s KYC guide for the gaming industry in the USA and Canada.

• Australia

  Australia is a reputable gambling jurisdiction with strict compliance requirements. Australia has a high number of gamblers, with research showing that around two in five (38%) adult Australians gamble at least once a week. The country also has a well-documented history of problem gambling, which is why regulators maintain close oversight of the sector.
  
  Gambling regulation: All states and territories of Australia have their own gambling regulations and licensing authorities. Gambling, including poker machines, casinos, lotteries, and online betting, is administered by State and Territory regulators. The Australian Communications & Media Authority (ACMA) oversees online betting.
  
  Authority: The Australian Communications & Media Authority (online betting)
  
  AML Regulator: Australian Transaction Reports and Analysis Centre (AUSTRAC) supervises AML compliance across all gambling operators.
  
  Age restriction: 18+
  
  Overview: There is no single national regulator for land-based gambling in Australia. Requirements, licensing processes, and definitions (betting vs. gambling) vary by state and territory. The law known as the Interactive Gambling Act prohibits most forms of online gambling, but allows certain forms of online betting.
  
  Bookmakers and online operators must hold a state-issued license to operate in Australia. There are ongoing reforms aimed at strengthening AML obligations and promoting a national self-exclusion register (BetStop).
  
  South Australia has recently launched a new responsible gambling campaign.
  
  Suggested read: Gambling and Betting in Australia—A Complete Guide 2025

• Gibraltar

  Gibraltar is one of the most popular and well-established gambling jurisdictions, known for its robust regulatory framework and high concentration of major international gambling operators, such as Ladbrokes and Betfair, are based there.
  
  Gambling regulation: The Gambling Act
  
  Authority: The Gibraltar Regulatory Authority for remote gambling and supervision.
  
  Age restriction: 18+
  
  Overview: Gibraltar’s gambling sector is governed by the Gambling Act and is subject to the Anti-Money Laundering Code of Practice, which provides interpretive guidance on compliance with local and EU AML requirements, including the Gibraltar Proceeds of Crime Act and relevant EU Anti-Money Laundering Directives. All remote gambling operators must conduct thorough AML checks and adhere to stringent reporting, customer due diligence, and transaction reporting obligations.

• The UK

  The UK is famous for its strict regulatory requirements, transparency, and thorough protection of vulnerable individuals.
  
  Gambling regulation: The Gambling Act and LCCP (Licence Conditions and Codes of Practice) and additional guidance issued by the UKGC.
  
  Authority: The UK Gambling Commission
  
  Age restriction: 18+
  
  Overview: The Gambling Act, together with the LCCP, sets out detailed licensing, anti-money laundering, social responsibility, and player protection requirements and divides gambling into gaming, betting, and lottery segments. All gambling operators, including offshore gambling providers, must obtain a UK license to serve British customers and comply with the full range of regulatory obligations. Since April 2020, UK residents have been prohibited from using credit cards for gambling transactions, since credit cards pose financial risks to problem gamblers, allowing them to spend more than they can afford.
  
  The UK is known for its high AML compliance standards and well-developed responsible gambling policies.

• The European Union (EU)

  Gambling regulation: There is no single EU-wide regulation for gambling activities. Regulation of both land-based and remote gambling is the sole responsibility of each member state. The 4th, 5th, and 6th Anti-Money Laundering Directives (AMLD) set minimum AML requirements for all obliged entities across the EU, including gambling operators. Each member state transposes these directives into national AML laws, which may impose stricter obligations.
  
  Authority: Each EU country has its own gambling regulator and licensing regime. The European Gaming and Betting Association (EGBA) is a voluntary industry body that promotes high standards, but membership is not required.
  
  Age restriction: 18+ (in most countries; may vary locally)
  
  Overview: While AML requirements are harmonized through the EU Directives, gambling regulation itself remains national. Member states implement their own licensing, social responsibility, and enforcement frameworks, which can differ significantly in scope, cost, and reputation.
  
  For example, Malta and some other jurisdictions offer popular licensing regimes, while others are more restrictive or have higher barriers to entry.

• Malta

  Malta is a prestigious and reputable gambling jurisdiction, known for its robust regulatory framework, high AML standards, and strong player protection measures.
  
  Gambling regulation: The Gaming Act
  
  Authority: The Malta Gaming Authority (MGA)
  
  Age restriction: 25+ for Maltese residents, and 18+ for non-residents
  
  Overview: In Malta, the Gaming Act and subsidiary legislation establish a comprehensive framework for the licensing and supervision of all gaming activities, including both a game of chance, where the outcome is determined by luck, and a game of skill, where the outcome is determined by the player’s skill. Betting belongs to games of chance.
  
  Malta is famous for its secure business environment, high AML standards, and strong player protection policies. Therefore, Maltese licenses are considered among the most reputable in the EU, but are subject to rigorous supervision.

• Cyprus

  Both gambling and betting are regulated separately in Cyprus. For online gambling, only remote sports betting is permitted; online casino games are prohibited.
  
  Authority: The National Betting Authority (NBA) supervises all betting (remote betting and land-based betting)
  
  AML Regulator: Unit for Combating Money Laundering (MOKAS). The NBA is also responsible for AML supervision of licensed betting operators, in accordance with the Prevention and Suppression of Money Laundering Law.
  
  Age restriction: 18+
  
  Overview: Gambling (such as casinos and poker, etc.) and betting (sports and other events) are governed by separate legal regimes in Cyprus. The Betting Law 2019 supervises online and land-based betting, requiring companies to obtain a local license, maintain a physical presence in Cyprus, and meet a share capital requirement of at least €500k ($586k). A bank guarantee amounting to €550k ($645k) is also required. The following online gambling and betting activities are prohibited in Cyprus:
  1. online casino games (including online slot machines)
  2. betting exchanges
  3. spread bets
  4. dog racing bets
  5. all gambling and betting activities involving cryptocurrency
  
  Land-based slot machines are legal, but are permitted only within licensed casinos, which operate under a separate regulatory regime.

• Curaçao

  Curaçao is famous for its low gambling taxes (only 2%, no VAT).
  
  Gambling regulation: Remote and non-remote gaming are now regulated under the National Ordinance on Games of Chance (LOK), which replaced the previous laws in December 2024.
  
  Authority: Curaçao Gaming Authority (CGA), formerly known as the Gaming Control Board (GCB)
  
  Age restriction: 18+
  
  Overview: As of December 2024, all gambling operators in Curaçao must obtain a license directly from the Curaçao Gaming Authority (CGA) under the new National Ordinance on Games of Chance (LOK). The master license regime has been abolished. Operators must undergo integrity and financial checks, pay updated application and annual fees, and comply with strict AML/CFT and responsible gaming requirements. Under the CGA’s responsible gaming policy (effective April 2025), all licensees must implement player information and accessibility standards, behavior tracking, and robust self-exclusion and cooling-off measures. All license holders are subject to ongoing audits and monitoring by the CGA.

• Costa Rica

  Costa Rica is well-known for its relatively lenient and business-friendly gambling laws, making it a popular base for offshore gambling operators in Latin America.
  
  Gambling regulation: There is no dedicated gambling regulator; instead, a mix of national laws and decrees governs the sector. Gambling and betting are regulated under a framework that distinguishes between land-based and online activities. The main gambling laws include Law No.3/1922, Law No.9050/2012 (taxation), and several key decrees governing licensing and operations.
  
  Local casinos are allowed only as part of hotel services. Online gambling operators can be licensed as data processing companies, but cannot legally serve Costa Rican residents.
  
  Age restriction: 18+
  
  Overview: AML and KYC controls exist, but are minimal. Responsible gambling obligations are very limited; there are no mandatory self-exclusion, player protection, or training requirements. Advertising is restricted against misleading practices.

Suggested read: Top 10 Gambling-Friendly Countries

List of jurisdictions that ban gambling in 2025

While gambling is allowed in most countries, there are regions where gaming activities are completely prohibited. The reasons behind this vary from social to political to cultural aspects. 

Jurisdictions that have prohibited gambling include:

• Afghanistan
• Algeria
• Bahrain
• Brunei
• Cambodia (banned for locals, allowed for tourists)
• China
• Cuba
• Eritrea
• Hawaii
• Kosovo
• Libya
• Maldives
• Mauritania
• North Korea
• Pakistan
• Qatar
• Saudi Arabia
• Somalia
• Sudan
• Syria
• UAE
• Vietnam (banned for locals, allowed for tourists)

If you want to learn more about the current regulatory framework in the UAE and get updated on major gambling changes in the country, check out our complete guide on the topic. 

However, as we can see in the United Arab Emirates, which is taking steps to allow some form of gaming activities, the situation might change in these regions. 

What are the new trends in casino AML and compliance for 2025?

Casinos, especially online platforms, are facing mounting pressure to enhance their AML and compliance frameworks. Regulators around the world are tightening oversight as criminal tactics evolve to exploit new vulnerabilities.

Here are the top trends shaping the casino compliance landscape:

AI-driven AML monitoring	Casinos are using AI and machine learning to detect suspicious activity in real-time. AI tools are being used to identify patterns, flag high-risk players, and adapt to new money laundering methods faster than traditional systems.
Dynamic risk scoring	Dynamic risk scoring, where customer profiles are continuously assessed based on their behavior, is now a standard feature, allowing for more focused enhanced due diligence (EDD).
Cross-border data sharing and licensing	As more casino platforms go global, many regulators are pushing for better cross-jurisdictional cooperation. The EU, for example, is aligning compliance expectations to more efficiently combat money launderers.
Promotion of responsible gambling	Responsible gambling practices for casinos include affordability checks and the rollout of national self-exclusion programs.
Focus on crypto and digital payments	With more casinos experimenting with cryptocurrencies and fintech payment channels, regulators will be focusing on how these platforms are monitored.
Integration of KYC and transaction monitoring	Integrating KYC with transaction monitoring provides a holistic understanding of individual player actions.
Continuous fraud prevention throughout the player journey	Inadequate fraud prevention can lead to compliance failures, highlighting the importance of robust fraud controls.

Best practices for casino operators in 2025

• Implement layered KYC and ongoing monitoring
  Use multi-step identity verification at onboarding, and keep assessing player risk levels dynamically based on behavior.
  
• Adopt an ISO/IEC 27001-certified ISMS
  Establish an Information Security Management System that follows ISO/IEC 27001 standards to strengthen data protection and streamline compliance.
  
• Use AI and machine learning for AML detection
  Use smart tools to flag suspicious activity in real-time and reduce false positives.
  
• Build a workplace culture of compliance
  Regularly train all staff on AML risks, data handling, and responsible gambling obligations.
  
• Stay ahead of regulatory changes
  Monitor updates from key regulators in all jurisdictions where you operate.
  
• Use responsible gambling tools
  Offer self-exclusion options, set deposit limits, and monitor signs of problem gambling.

Building trust through smart casino compliance

Stringent compliance with the changing regulatory landscape is a legal requirement. However, it’s also key to building trust, protecting players, and staying competitive. By investing in smart solutions and responsible practices, casinos can grow sustainably while making sure players have fun and don’t put themselves at excessive risk.

FAQ

• What are AML requirements for online casinos?

  Online casinos must verify player identities, monitor transactions, and report suspicious activity to comply with anti-money laundering (AML) laws. They are typically required to follow regulations such as the FATF guidelines or local AML frameworks.

• How do casinos identify suspicious behavior?

  Casinos use transaction monitoring, behavioral analysis, and dynamic risk scoring systems to detect red flags like rapid deposits and withdrawals. They also use AI-driven tools to spot suspicious behavior in real-time.

• What is responsible gambling compliance?

  Responsible gambling compliance means protecting players from addiction by enforcing age limits, self-exclusion tools, deposit caps, and playtime alerts. Casinos should also monitor for signs of harmful behavior and guide users toward support services.

• What data privacy laws apply to gambling platforms?

  Casinos must comply with local privacy laws, like the GDPR in the EU and the CCPA in California. These laws require transparency, secure data handling, and user consent for processing personal information.

• Which compliance tools are used by casinos?

  Casinos use KYC/AML software, transaction monitoring systems, player risk analytics, and self-exclusion databases. Many also implement ISO-certified Information Security Management Systems (ISMS) for data protection.

• What’s the difference between gaming, betting, and gambling?

  The terms “gaming”, “betting,” and “gambling” are often used as synonyms. However, there are important differences between them, and they can be regulated in different ways, depending on the jurisdiction. The main difference lies in the degree of certainty and risk. “Gaming” and “gambling” are often used interchangeably. However, the former depends on a certain degree of skill (i.e. poker), whereas the latter is based entirely on games of chance (i.e. roulette and other online casino games). Betting can involve strategic prediction of real-life events supported by data and research. The most common examples are bets on sporting events, reality shows, and elections.