Gambling Commission flags white-label partnerships as money laundering risk

The Gambling Commission has warned that inadequate scrutiny of white-label partnerships and business-to-business relationships is contributing to money laundering risks within Britain’s licensed gambling industry.

Its 2026 money laundering and terrorist financing risk assessment draws on information collected between 1 April 2023 and 31 October 2025. Remote and land-based casinos, along with betting operators, retain the industry’s highest risk classifications.

By comparison, the National Lottery and society lotteries continue to present a low risk.

White-label partnerships under scrutiny

The assessment identifies insufficient due diligence surrounding white-label arrangements and wider B2B relationships as an operator-side vulnerability.

Under a white-label partnership, a third-party brand can provide gambling services using the licence and infrastructure of an existing operator. However, the licensed business remains responsible for ensuring that activity conducted through the partnership meets regulatory requirements.

Weak partner checks could therefore allow higher-risk businesses, payment arrangements or customers to enter the regulated market without sufficient scrutiny.

The warning follows the regulator’s recent action over AML and supply-chain failings at Evolution, which demonstrated the risks that can arise when licensed businesses do not maintain adequate oversight of commercial relationships.

“Insufficient scrutiny of white-label partnerships and business-to-business relationships was identified as a contributor to money laundering risk.”

White-label arrangements were not included in the government’s proposed prohibition on promoting unlicensed gambling businesses. The Department for Culture, Media and Sport instead plans to use secondary legislation under the Gambling Act 2005 to criminalise the promotion of unlicensed operators in Great Britain.

Remote casinos retain high-risk status

Remote casino gross gambling yield reached £5 billion between April 2024 and March 2025, including £4.2 billion generated by slots. Remote betting produced £2.6 billion, while non-remote betting generated £2.5 billion.

Poker was assessed as presenting a high overall money laundering risk in both remote and non-remote casinos. Peer-to-peer betting products, including betting exchanges, were also considered particularly vulnerable.

The gambling software sector was upgraded from low to medium risk due to its international supply chains and the possibility of licensed software being resold or supplied to illegal operators.

Payment methods and identity fraud raise risks

The Commission highlighted e-wallets, prepaid cards and cryptoasset-linked funds as growing concerns, particularly where customers use several payment methods or open-loop payment systems.

Criminal attempts to bypass customer due diligence are also becoming more sophisticated. Fraudulent documentation is increasingly being supported by deepfakes, face-swapping technology and other AI-generated identity materials.

Operators were criticised for inadequate AML and counter-terrorist financing policies, poorly trained staff, unsuitable financial thresholds and weak monitoring of linked or duplicate accounts.

Casinos offering money service business functions face additional exposure. Approximately 56% of non-remote casino licensees provided services such as currency exchange or cheque cashing during 2024, compared with 3% of remote casino operators.

The government has allocated £26 million over three years to strengthen the Gambling Commission’s response to illegal gambling and address vulnerabilities within the payment chain.