Current Event Discussion: Module 3
All other students are then required to read and question and comment on the discussion forum for current event(s) within Module 3. The points possible below pertain only to the discussion forum part. The original student(s) posting and the moderating of the discussion forum are part of a different grade.
The digital innovation of the casino industry introduces material financial opportunities and operational concerns in the area of compliance/regulatory adherence and the update by the American Gaming Association (AGA) on best practices for Anti-Money Laundering (AML) compliance addresses these concepts directly. This guidance is helpful considering the rapid expansion in sports betting and iGaming ops across the USA recently and these conditions necessitate a revamped focus on AML ideas.
This topic was selected mainly because of its relevance and urgency within the digital gaming and casino industry. As gaming ops continue to revolutionize their offerings (especially with cashless wagering/cryptocurrencies), the sector faces an increased risk of being used for clandestine money laundering activities. One of the most pressing topics highlights is the threat from organized and large-scale cyber crimes (identity and credit card theft rings). These criminal activities leverage the rapid account creation and fund movement capabilities often found on online betting apps and the AGA’s emphasis is on geolocation tools to monitor for device sharing and common IP addresses to identify and mitigate these threats.
An additional noteworthy logistical risk arises from the diverse methods available for coordinating online deposits and withdrawals. The simplicity that comes with this feature unintentionally raises the risk of money laundering activities. The AGA advisory recommends actions such as enforcing stricter payment controls and guaranteeing that monies are returned to the original payment method. Although clients may benefit from cryptocurrencies in certain cases, there are unanswered questions about them because of the volatility that comes with their growing pains. Before depositing or wagering, the AGA suggests changing cryptocurrency into fiat money. This brings these transactions under the conventional jurisdiction of the AML policies and procedures that are now in place.
To sum everything up, the AGA’s revised AML standards represent a significant advancement for the gaming sector and a turning point toward increased responsibility and sophistication in digital casino ops. This not only reaffirms the industry’s adherence to moral and regulatory requirements but also sets it up for sustainable success in a world that is not slowing in its technological trajectory.
Source:
https://www.ey.com/en_us/forensic-integrity-services/guidance-evolving-with-gaming-industry