Responsible Gambling & Anti-Money Laundering Principles

An introductory guide to RG And AML requirements for the global online and land-based gaming sector.

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Introduction

iGaming regulations vary between different countries and jurisdictions, but most have a focus on responsible gambling (RG) and anti-money laundering (AML) requirements.

At iGaming Academy, we offer multi-jurisdiction courses on anti-money laundering for online gaming, as well as, responsible gambling for online operators.

To navigate the complexities of different local gambling authorities, our courses need to be tailored to the jurisdiction. However, the principles of responsible gambling and anti-money laundering legislation are similar, regardless of the iGaming market. So this guide is designed to provide you with an overview of these principles and the responsibilities of the iGaming operator.

In emerging markets and countries where iGaming, also known as online gambling, is just opening up, you can expect regulatory authorities to base their requirements around these key principles.

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Contents

Part 1: Responsible Gambling
The 6 Pillars of Responsible Gambling

Part 2: Anti-Money Laundering
Key AML Requirements Globally

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Part 1: Responsible Gambling 6 Pillars

Responsible gambling has become a key regulatory focus in recent years with all gambling jurisdictions introducing additional requirements for operators. As a result, we update our RG course content on a regular basis to reflect these changes.

Responsible gambling requirements are usually based around the following six pillars:

1. Protection of vulnerable gamblers
2. Prevention of underage gambling
3. Safety measures against criminal activities
4. Information privacy
5. Online payment protection
6. Ethical and responsible marketing

1. Protection Of Vulnerable Gamblers

Safeguarding vulnerable gamblers is an important focus of responsible gambling.

Key requirements may include:

• Communicate with at-risk players and offer gaming management tools
• Set financial limits (deposit, wager, spend, balance) for players
• Make time limits per gaming session available
• Provide reality checks through pop-up reminders
• Offer time-out and self-exclusion options
• Display information about support organisations for players adversely affected by gambling

2. Prevention of Underage Gambling

Strict adherence to the following measures is crucial to ensure that individuals below the legal gambling age are not allowed to gamble.

Key requirements include:

• Implement a clear registration process for all players
• Enforce mandatory age verification steps to confirm the legal gambling age (usually 18 or 21)
• Encourage parents to monitor their children’s online activities
• Recommend the use of parental control apps or programs to block access to gambling websites on their devices

3. Safety Measures Against Criminal Activities and Player Funds Protection

By proactively addressing security concerns, operators can protect both their platforms and players from potential threats and criminal activities.

Key requirements include:

• Implement robust security measures to safeguard against online criminal activities.
• Keep players funds segregated and remaining separately identifiable at all times
• Employ procedures and software programs designed to detect and block; Money laundering activities, Fraudulent activities, and Cybersecurity threats

See also Anti-Money Laundering Requirements below

4. Information Privacy Requirements

By establishing robust access control measures, operators can effectively protect players’ private data from unauthorised access, mitigating the risk of online criminal attacks.

Key requirements include:

• Implement stringent access control policies to safeguard players’ private details
• Protect sensitive information, including gamblers’ names, addresses, and phone numbers
• Ensure compliance with regulatory requirements related to data protection and information privacy

5. Online Payment Protection Requirements

By prioritising the security of online payments and choosing the right payment and risk processing solutions, operators can instil confidence in players and protect their financial information while facilitating seamless transactions.

Key requirements include:

• Provide a secure iGaming software platform that protects players’ personal data and financial details
• Thoroughly vet and select gambling payment and risk processing solutions
• Ensure these solutions allow players to; Safely deposit funds, Transfer money securely, and Withdraw funds from the gambling website

6. Ethical and Responsible Marketing Requirements

By following ethical and responsible marketing practices, operators demonstrate their commitment to fair and transparent advertising while protecting the wellbeing of their customers.

Key requirements include:

• Adhere to relevant regulatory advertising rules
• Ensure advertisements are factually accurate
• Avoid targeting self-excluded, underage or vulnerable gamblers
• Obtain customer permission before engaging in direct marketing using their personal details

Part 2: Anti-Money Laundering Requirements

Money Laundering is the process by which criminals attempt to conceal the identity, source or destination of illicit funds to make them appear legitimate.

The Financial Action Task Force (FATF) is an intergovernmental organisation dedicated to establishing global standards for combating money laundering and the financing of terrorism. It plays a pivotal role in shaping worldwide Anti-Money Laundering (AML) guidance and has 39 members globally. As a result, numerous laws and regulations worldwide incorporate common principles and recommendations advocated by FATF.

In regulated jurisdictions, AML requirements for iGaming operators and land-based casinos follow national legislation. For example, the EU Commission’s AML Directives, once implemented into national law, trigger any updates in AML guidance or directives issued by local gambling regulatory authorities or financial bodies.

The list below highlights the principles and requirements of AML for gambling operators. However, it is not exhaustive. Instead, it provides a snapshot of the key responsibilities gambling operators need to be aware of and put in place. Please refer to AML regulations in your jurisdiction to ensure compliance:

• Identifying and verifying customers: Gambling operators must identify and verify their players’ identities before allowing them to gamble. This includes obtaining information such as the customer’s name, address, and date of birth as a minimum.
• Conducting due diligence: Due diligence includes ongoing monitoring of player transactions and activities. This helps to identify any suspicious behaviour or transactions.
• Reporting suspicious transactions: Operators must report any suspicious transactions and activities to the relevant authorities. This includes transactions that are unusually large, complex, or have no apparent economic or lawful purpose.
• Appointing a designated AML officer: Most national regulators require gambling operators to appoint a designated AML officer to oversee compliance with AML regulations, as well as conducting ongoing employee training and risk assessments.
• Implementing and maintaining AML programs: Operators must implement and maintain AML programs to prevent money laundering and terrorist financing. These programs should include policies, procedures, and controls to identify and manage risks.

Failure to comply with AML regulations can result in penalties, including fines, licence revocation, and criminal prosecution. For this reason, it is not only essential to put in place programs to identify and prevent AML, but also ensure your staff are trained according to local AML regulations in the jurisdiction they operate in.

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As you can see both responsible gambling and anti-money laundering requirements impact on all areas of your operations and, when factoring in local regulations, can be complex.

How iGaming Academy Can Help

If you would like to learn more about the online and bespoke courses we offer at iGaming Academy please get in touch. You can also request demo access here to explore our RG and AML courses in more detail.

Author: Yuliya Khrenova, Head of Compliance & DPO