UKGC Warns of AI Deepfakes as an ‘Emerging’ Money Laundering Risk
The U.K. Gambling Commission has highlighted a series of emerging money laundering and terrorist financing risks that operators are now facing, ranging from AI deepfakes used to fake identity documents to crypto crash games published by unlicensed operators.
In an update April 8 to its AML and terrorist financing risks guidance, the U.K. watchdog said AI programs and software had grown in sophistication and are increasingly being used to bypass due diligence checks.
Criminals are using AI to create false documentation, deepfake videos and face swap images and videos to facilitate the laundering of money.
The commission has ordered operators to train staff in the assessment of customer documentation for AI-generated documents.
The update also highlighted that some remote and land-based casinos have been providing unlicensed money service business (MSB) facilities, such as foreign currency exchange, third-party check cashing and the transfer of money in and out of casinos via a third party.
The regulator hit two remote operators with penalties for anti-money laundering (AML) and customer care failures last month. The Football Pools was ordered to pay $484,417 for various AML breaches, while Corbett Bookmakers was hit with a fine of $888,626.
Flutter-Snaitech Deal Close to Completion as Final Approvals Secured
Flutter Entertainment expects its acquisition of Italian brand Snaitech to be finalized within the next few weeks, as the proposed deal has now secured all remaining approvals.
The group agreed to acquire Italy-facing omnichannel operator Snaitech from Playtech in September last year for $2.52 billion.
The deal has faced antitrust, gaming and other regulatory and competition approvals. Flutter and Playtech confirmed the news in separate investor updates on April 9. The deal is now expected to close before the end of April.
In its statement, Flutter again said the deal would expand its “local hero” brand portfolio in Italy, which already includes PokerStars, Betfair and Tombola. The group also acquired Sisal in 2021.
“The acquisition of Snai fully aligns with Flutter’s strategy to invest in leadership positions in attractive international markets,” Flutter said. “This creates value through providing access to Flutter’s market leading products and capabilities.”
IGSA Seeks to End Fragmented Regulations, Strengthen Sector Against Cybersecurity Threats
The International Gaming Standards Association (IGSA) believes more should be done to mitigate AI and cybersecurity risks in gambling. The body has also called for the global gambling sector to end fragmented regulations and standardize 90 percent of their technical requirements across global markets.
Speaking to iGB, IGSA President Mark Pace says regulations remain largely fragmented and this makes it difficult to adopt standards and practices across the wider industry. Pace is campaigning to end that fragmentation.
Also at the top of Pace’s priority list is the sector’s protection against cyber threats. He says cybersecurity remains a critical challenge for regulators and operators.
Currently, cybersecurity audits are not a requirement in many markets. And Pace says whatever checks are in place are often “rudimentary.” He is advocating for more stringent checks and standards to be put in place to better protect the entire technical supply chain.
Techno Offshore Faces $1.5 Million Dutch Fine Over Illegal Activity
Dutch regulator Kansspelautoriteit (KSA) has issued a $1.5 million fine to Techno Offshore, the company behind the Nolimitbet.com and Simplecasino.com brands, for illegal activities in the country.
KSA said Techno Offshore was illegally offering games of chance to Dutch players through the websites without the relevant license. Operators can only offer online gambling in the Netherlands after securing approval from the regulator.
Detailing the charge on April 9, KSA said Techno Offshore did not take the sufficient measures to block Dutch players. The regulator also flagged the operator for not checking players’ ages upon registering and for running prohibited features including autoplay.
