UKGC’s AML Oversight Under Scrutiny

A recent HMRC report questions the UK Gambling Commission’s (UKGC) effectiveness in tackling financial crime, citing limited resources and declining enforcement actions.

Despite persistent risks, the UKGC allocated just £227,700 for AML oversight in 2023-24—a modest increase from previous years. The number of fines has also plummeted, with only seven issued last year (£9m) compared to 19 in 2022-23 (£53.5m) and 10 in 2021-22 (£23.5m).

The UKGC supervises 247 casino operators, many registered offshore in jurisdictions like the British Virgin Islands, Cyprus, and Malta, complicating compliance efforts. With only five full-time AML staff, plus 159 multi-departmental contributors, concerns are growing over the regulator’s ability to enforce AML standards effectively.

UKGC enforcement director John Pierce has criticized industry compliance as mere “tick-box” exercises. Meanwhile, online gambling revenue surged 21% year-over-year in Q4 2024 to £1.54bn, despite a 3% drop in active player accounts—raising fears that a smaller group of high-spending customers may be fueling money laundering.