Online gambling and money laundering: “views from the inside”
| DOI | https://doi.org/10.1108/13685201211238052 |
| Published date | 06 July 2012 |
| Date | 06 July 2012 |
| Pages | 304-315 |
| Author | Graham Brooks |
| Subject Matter | Accounting & finance |
Online gambling and money
laundering: “views from
the inside”
Graham Brooks
University of Portsmouth, Portsmouth, UK
Abstract
Purpose – The purpose of this paper is to examine the “relationship” between the regulated online
gambling sector in Great Britain and potential for money laundering.
Design/methodology/approach – Direct “negotiated” access and a snowball sample were used to
secure five interviews with gambling personnel.
Findings – The paper shows that respected online gambling sites in highly regulated jurisdictions
are helping in tackling money laundering.
Research limitations/implications – Only a limited number of people were interviewed.
Originality/value – The paper presents interviews with key personnel in the gambling industry,
in anti-money laundering, fraud and integrity units.
Keywords United Kingdom,Betting, Internet, Fraud, Moneylaundering, Online gambling,
Gambling Commission, Crime prevention
Paper type Research paper
Introduction
Since the promulgation of the White Paper, A Safe Bet for Success (Department of
Culture, Media and Sport, 2002) and subsequent Gambling Act 2005 (Department of
Culture, Media and Sport, 2005) in Great Britain “concerned voices” have referred to
gambling as a sin, a pathway to crime and a pathological illness (Brooks, 2011). This
however is hardly surprising, as authors have often suggested that gambling is
addictive (Griffiths, 1995, 1999; Orford, 2001; Wardle et al., 2007) and potentially
“criminogenic” in Great Britain (Orford et al., 2009) and elsewhere for some years
(Derevensky and Gupta, 2004; Giacopassi and Stitt, 1993; National Gambling Impact
Study Commission Report, 1999; Williams et al., 2005). This “psychological” informati on
on money laundering and fraud in the “gambling industry” is however limited. Apart
from Dohley (2000), Sakuri and Smith (2003), Blaszczynski and McConaghy (1994) and
Croft (2002, 2003) there is little reference to this association. Furthermore, the anti-money
laundering, “policing” literature (Harvey, 2005; Sheptycki, 2002; Sproat, 2007, 2009)
rarely makes reference to the gambling sector, with the exception of Hugel and Kelly
(2002) and Cabot and Kelly (2007) with the primary focus the USA.
While there is some currency to the condemnation of gambling, a “psychological”
negative approach has failed to see the contribution highly regulated gambling sites offer
law enforcement and sporting bodies in preventing “crime”. With the portrayal of gambling
as potentially criminal, regardless of the jurisdiction and regulation that it is under, and the
often, but not always, misleading “media” representation of the “gambling industry”, it is
the intention of this paper to offer a view “from the inside” on what gambling online sites do
to combat money laundering.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
JMLC
15,3
304
Journal of Money Laundering Control
Vol. 15 No. 3, 2012
pp. 304-315
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685201211238052
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