Through foreign bank accounts, cryptocurrencies, prepaid cards, and new mobile applications, black money is laundered both in Greece and worldwide, with illegal online gambling serving as the main vehicle.
These are the findings of a strategic analysis study by the Anti-Money Laundering Authority, which focuses on the risks posed by the explosive growth of online betting, especially from unlicensed operators, as well as the fact that such platforms are being used by criminal networks to legitimize illicit funds.
The study, conducted by the Authority’s Financial Intelligence Unit, stresses that money laundering through online gambling providers has emerged as one of the biggest threats to the stability and integrity of the global financial system. Criminal organizations exploit both unlicensed operators and vulnerabilities in licensed ones, employing complex methods and techniques to conceal illegal profits.
Such practices include dispersing funds across multiple accounts, using fictitious transactions, and manipulating monitoring systems.
The Risks of Illegal Gambling
The report highlights some of the most widespread money-laundering practices while warning players who choose unlicensed providers that they face serious risks such as:
- Theft of personal and payment data.
- Increased risk of fraud.
- No guarantees for deposited funds or payouts.
- Lack of consumer protection.
- No responsible gaming safeguards (e.g., betting limits).
- Possible links to financial crime, since such platforms may be run by criminals or directly owned by them.
Smart Laundering Tricks
Use of digital payment services
Fintech innovations allow players to deposit cash via mobile apps or online platforms, crediting their gambling accounts by paying through partner retail outlets. Each transaction generates a payment code shown at the store.
Analysis showed that these methods are among the most popular for loading gambling accounts, but they raise red flags such as:
- Numerous daily cash deposits, sometimes just seconds apart.
- Deposits consistently reaching daily limits (€500), with cumulative sums exceeding €5,000 per day.
- Weak due diligence in partner retail outlets, with no real-time monitoring, significantly heightening money-laundering risks.
Prepaid cards
Prepaid cards loaded with cash or bank transfers are widely used to credit e-wallets and then gambling accounts. Indicators include:
- High volumes of prepaid card purchases linked to multiple e-wallets.
- Signs of “money mule” networks recruited to buy and load prepaid cards.
- Large-value card purchases by individuals with funds funneled through third-party business accounts.
- Cards often bought anonymously, without KYC checks, making them ideal for layering transactions and cross-border money movements.
Use of licensed gambling accounts
Even accounts with licensed providers are misused. Red flags include:
- High-value deposits but little betting activity.
- Betting patterns inconsistent with the player’s financial profile.
- Bets covering all outcomes of an event to recycle funds.
- Multiple linked payment methods, domestic and foreign.
- Withdrawals requested from numerous IP addresses, suggesting “betting mules.”
Bank accounts (domestic & foreign)
Suspicious signs include:
- Dozens of accounts opened and quickly abandoned by the same individual.
- Transactions inconsistent with income profiles (e.g., unemployed or low-income persons moving large sums).
- Accounts belonging to relatives also involved, hinting at coordinated laundering networks.
- Heavy use of ATM cash deposits, prepaid card loading/unloading, and transfers to gambling providers.
- Rapid cross-bank transfers to obscure fund trails.
- Links with professional athletes, business owners, and consultants in betting industries.
Mobile banking apps
Digital-only banks allow quick transactions, but are exploited for laundering. Risks include:
- Accounts funded by multiple external cards.
- Frequent unexplained transfers between users of the same provider.
- Gambling-related transactions tied to digital wallets.
Cryptocurrencies
The growing use of cryptocurrencies adds another laundering channel. Many unlicensed platforms accept crypto exclusively, taking advantage of its anonymity and lack of regulatory oversight. Findings include:
- Numerous crypto-wallets held by individuals engaged in illegal betting.
- Multi-million euro transactions between wallets without fiat conversion, suggesting layering activity.
- Crypto debit cards used for everyday purchases, channeling illicit funds into the legitimate economy.
Cash-out of winning tickets
Some criminals collaborate with licensed betting agents or employees to launder funds through the purchase and redemption of winning tickets, later declaring the “winnings” as legitimate income.
Who Plays in Illegal Gambling
Profiles of individuals linked to illegal gambling include:
- Criminal records, often tied to organized crime.
- Offshore shell companies with weak compliance.
- Businesses (esp. restaurants) acting as fronts for illegal gambling.
- Licensed land-based gambling operators.
- IT professionals developing betting software/websites.
- Athletes, football officials, referees, and betting consultants.
- Many invested their illicit gains in real estate, luxury cars, or legitimate businesses to integrate black money into the legal economy.
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