Anti-Money laundering Strategies in regards to Sports Betting

30 Apr by soc

Anti-Money laundering Strategies in regards to Sports Betting

Sports’ betting involves placing wagers on the outcome of matches. If the predictions prove to be accurate, people who have placed these bets get rewards, in accordance with a preset odds formula. The primary intent behind money laundering is to use the profits obtained from illegal means in legitimate businesses, to mask the trail of money. What punters do is that they get large sums of illegal money from sports betting, and then make it seem as if these profits have been derived from legitimate sources.

Punters employ certain Machiavellian schemes to launder money. They introduce illegitimate wealth in the financial system ensued by making perplexing financial transactions to befuddle authorities. Finally, they increase their profits from the investment of illegal monies in legitimate businesses. It’s a well-structured scheme that is employed to outwit the authorities, and that’s why it’s necessary to implement stern antimony laundering policies and practices to eradicate these foul practices.

Anti-Money Laundering Practices

  1. ·         The Money laundering act of 2001 should strongly deter the practice of money laundering in sports betting. It should clearly specify the maximum amount a single person can bet on a particular sport. Exceeding this limit must result in strict penalties. It behooves the sports betting supervisor to report any individual who does not adhere to these limitations.
  2. ·         Licenses must be provided to sports betting administrators before they launch their businesses. If they fail to obtain necessary certifications, they should not be permitted to open up a sports betting center. Moreover, a sports betting company must maintain a certain level of transparency to ensure any illegal or suspicious activity doesn’t slip under the radar.
  3. ·         A well-detailed monthly or a quarterly review of all bets placed should be handed out to the commission. The commission should scrutinize the affairs of a sports betting business to ensure that it is does not abet punters in money laundering. If found guilty, hefty fines and criminal sentences should be given to the handlers of the business.
  4. ·         Wagers placed in the thousands and millions should be not paid in cash. Instead, punters must be forced to place hefty wagers through banks, so that their gambling activity can be traced.
  5. ·         Authorities must not simply regulate sports betting activities. They should also play a vital role in ceasing the access of money launders to the sports betting industry. This can only happen if strict laws are imposed and implemented to kill the emergence of money launderers in their wake. It must make them think long and hard, before they commit money laundering of any magnitude.
  6. ·         Sports betting businesses must also play their part in halting the rise of money launderers. They should effectively cooperate with judicial and law enforcement authorities to open the curtains on these unlawful activities that are funding terrorism and other kinds of crime.
  7. ·         Sports’ betting is a virtual business and grants punters with virtual anonymity, which makes it easier for them to carry out suspicious money laundering activities. This anonymity should be taken away from them in order to keep a close eye on their gambling habits. They should not be allowed to open anonymous accounts, or accounts under made up aliases. They should be strictly ordered to show their true identities before indulging in gambling activities of any sort.
  8. ·         Direct acquisition of funds from players in the form cash should also be discouraged. Any sort of financial transactions should be made through credible payment methods, such as credit cards, electronic transfer, cheques. This will help authorities trace the money trail, and eliminate any doubts regarding suspicious money laundering activities.
  9. ·         A punter should be allowed to register only one account under his real name. A punter possessing several accounts can easily fool the authorities.
  10. ·         Before placing a wager, the sports betting managers should make sure that the account from which the wager has been placed has adequate funds to come good on the bet.
  11. ·         Prohibit users from establishing gambling profiles from disreputable states or territories.
  12. ·         If a user account has no gambling activity for an extended period, deactivate his account, and send his pending balance back to him.
  13. ·         If possible, gather information from external sources about the financial history of the play before signing him up.

All these anti-money laundering practices can uproot the existence of dubious players in the sports betting business, and make it a seamless experience for people who are in the world of  sports betting for all the right reasons.


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