Money laundering through gambling devices

Abstract

Purpose The aim of this paper is to examine how money laundering occurs through electronic gaming devices, the regulatory requirements for operators of electronic gaming machines, the issues of on-line versus land-based gambling and a discussion about ethics and social responsibility. Design/methodology/approach This is primarily a conceptual paper which includes an identification of several theories relevant to money laundering. Primary data were obtained from one respondent through a face-to-face meeting and another through a telephone conversation. Findings A strong, globally co-ordinated effort is required to fight against the increasingly “dark side” of money laundering. The tenets of corporate social responsibility (CSR), including a strong focus on ethics, is vitally important in the gambling industry in helping to wipe out money laundering, which is used to make “dirty” money “clean” and in some instances, used to fund terrorism. Research limitations/implications Further studies could be conducted incorporating a sample of primary data within, and between, jurisdictions. Further work is recommended for developing a form of global collective targeted practical deterrents, supported by technology including artificial intelligence as identified to some degree in this paper. Whilst this paper has included a discussion on CSR, moral management and ethics as a means of arbitrating money laundering, future research could put this idea to the test. Practical implications Efforts (including technological) to combat money laundering at the venue level continue to be developed. Further, regulations could include mandatory training in CSR and ethics for all employees in organisations identified by regulators as being particularly susceptible to money laundering. Social implications Terrorist actions have gained increasing attention as various countries have had to endure seemingly escalating atrocities in their jurisdictions. Government has an important role to take the necessary steps to strike out terrorism to protect its citizens. Originality/value No peer-reviewed academic articles could be identified using a Google Scholar search on money laundering and/or marketing and or CSR. A limited number of articles were identified using the search terms “money laundering and gambling”.

Gambling and financial markets a comparison from a regulatory perspective

“…Foley et al ( 2019 ), for example, show the significant amount of illegal activities related to the use of cryptocurrencies, a problem that gambling regulators know as well (Potenza et al, 2000 ; Spapens, 2014 ; Albanese, 2018 ). Especially when it comes to money laundering, both markets face significant challenges (Wechsler, 2001 ; Levi and Reuter, 2006 ; Buchanan, 2018 ). Recent research has shown that people are now putting their money into cryptocurrencies, thereby replacing their usual risk-taking preferences from CFD-trading (Pelster et al, 2019 ), stock market day-trading and sports betting (Delfabbro et al, 2021 ).…”

To launder or not to launder: are there positive effects for the economies of countries who launder money?

“…Corporate money laundering/gambling activities have garnered increased attention from government, citizenry and the media. For example, a Royal Commission into the financial services industry has recently exposed malpractices in Australia (Buchanan, 2018; Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, 2019). The final report and the Government’s response are available on the Department of Treasury website (The Australian Government, The Treasury, 2019).…”