Kansspelautoriteit (KSA), the Dutch regulator, has warned that operators must do more to mitigate the threat of money laundering.

The regulator confirmed that it has issued three unnamed operators with instructions related to the Money Laundering and Terrorism Financing (Prevention) Act (Wwft).

Following an investigation, the KSA found that the operators in question had not complied with the Wwft and its guidelines. 

In particular, the regulator observed that providers do not always thoroughly investigate the source of players’ funds, and there were further shortcomings related to the risk classification of players.

Under Wwft guidelines, operators must, among other things, monitor player transactions and report unusual transactions to the Dutch Financial Intelligence Unit (FIU).

“The KSA’s current instructions require providers to adhere to the Wwft guidelines and to end the violations. If a subsequent inspection reveals that this is not the case, a more severe sanction may be imposed, such as a penalty or fine,” the regulator warned.

The comprehensive Wwft guidelines for operators are yet to be published as they are still being finalised. However, the KSA has released information about their issuance.

This included a Wwft webinar at the end of last year, explaining the legal standard and best practices. The guidelines were also updated at the end of 2023 based on research, feedback from consumers and suggestions from providers.

UK raises threat level

The damaging potential of money laundering through gaming has also been acknowledged elsewhere in Europe.

Last week, the UK’s Treasury and Home Office confirmed that it had raised the threat of money laundering through casinos from ‘low’ to ‘medium’, citing the continuing rise in popularity of online gaming.

According to the National Risk Assessment of Money Laundering and Terrorist Financing 2025 report, “changes in customer, geographical and transaction risks” – in particular, an increase in funds moving through remote casinos driven by the COVID-19 pandemic – have put the UK Government on alert.

The report noted that income from remote casino slot games has risen by 52% since it was last published in 2020, from £2.3bn to £3.6bn, with more players reportedly gambling for longer periods.

“The increased scale and volume of slot gaming, when combined with risks of non-face-to-face business relationships and the noncompliance with customer due diligence requirements by some casinos, increases the risk of money laundering and terrorist financing,” said the report. 

The most common occurrence of money laundering through licensed casinos was recreational spending of criminal property. However, instances of criminals attempting to ‘clean’ funds through casinos were also observed throughout the assessment period. 

Source