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The Hidden Threats of Online Gambling

The Hidden Threats of Online Gambling

While many have hailed the legalization of online gambling in some US states as a great step forward, there are others who have raised some serious concerns. Many have raised the question of how online criminal activity, such as money laundering and terrorist funding, will benefit from the new laws.

The Hidden Threats of Online Gambling

Many are raising concerns that criminal networks or even terrorists will take advantage of online gambling in order to launder money.

Back in July Senate Commerce, Science, and Transportation Committee Chairman Jay Rockefeller raised the prospect of online gambling affecting national security. He said that it “may make it easier for criminals and terrorists to launder money. We have already seen examples of money laundering and terrorist financing through online gambling operations in other countries.”
Already researchers have managed to bypass Nevada’s online gambling safeguards and gamble from locations outside of the state. This would allow crime organizations to operate untraceable money laundering built on a legalized poker industry. Criminals could arrange to play each other and have one deliberately lose, thus transferring the funds.

It is even conceivable that an al-Qaida poker network could launder enough money in six days to fund an operation like 9/11.

There are currently a number of legal proceedings against online gambling operators related to money laundering. Whilst online gambling for many is a source of entertainment, operators must stay vigilant against potential criminal activities.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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