AGA issues guidelines on mitigating crypto laundering in AML best practises

Summary

The American Gaming Association (AGA) has published a 64-page guide setting out anti-money laundering (AML) best practises for the gambling industry, with a substantial section dedicated to combating crypto laundering. The guidance arrives amid heightened regulatory scrutiny after several high-profile laundering cases and multi‑million-dollar settlements involving major Las Vegas casinos this year.

The AGA stresses the need for risk‑based AML programmes that comply with the Bank Secrecy Act and recommends converting virtual currency to US dollars before funds are used at sportsbooks so transactions fall under the same Suspicious Activity Report (SAR) processes as cash. The guide also highlights specific laundering risks in sports betting — such as wagering both sides of a bet or betting on behalf of unidentified third parties (known as using a “beard”).

The release precedes G2E in Las Vegas, where AML panels will feature compliance teams from operators including MGM, Wynn and Resorts World.

Key Points

The AGA published a 64‑page AML best practises guide for the commercial gambling industry.
It contains a detailed section on mitigating crypto laundering as virtual currency use grows in gaming.
The AGA recommends converting crypto to US dollars before use at sportsbooks so SAR reviews apply.
Sports betting presents distinct laundering risks: binary bets, wagering both sides and betting via a “beard”.
Recent enforcement: Resorts World, Wynn and MGM Resorts reached multi‑million dollar settlements this year over AML deficiencies.
The guide urges operators to maintain risk‑based programmes aligned with the Bank Secrecy Act and to strengthen transaction monitoring.

Context and relevance

This guidance comes at a time when regulators are intensifying oversight of casino AML controls after several convictions and large fines. For compliance teams, operators and vendors in the gambling sector, the AGA document is a timely blueprint: it addresses practical vulnerabilities introduced by crypto, clarifies expectations around reporting, and signals where regulators are focusing enforcement efforts. The guidance also frames AML as a live issue at G2E, meaning industry conversations and peer benchmarking will be prominent at the show.

Why should I read this?

Look — if you deal with sportsbook ops, compliance or payments, this saves you having to wade through the whole 64 pages to know what matters. It flags the biggest risks (crypto, double‑side bets, beards), the regulator’s expectations (convert crypto, SARs apply) and the recent fines that make this urgent. Quick read, big implications.

Source

Source: https://igamingbusiness.com/sports-betting/aga-aml-best-practises-new-guidelines/