Changes and Challenges in Online Gambling: Tightening Regulation Amidst Rising Money Laundering Concerns

Changes and Challenges in Online Gambling: Tightening Regulation Amidst Rising Money Laundering Concerns

SEPTEMBER 15, 2022

KEY TAKEAWAYS

  • The rapid growth of the online gambling industry during the COVID-19 pandemic looks set to continue post-pandemic. ISS ESG’s Sector-Based Screening research indicates that 13% of gambling companies are engaged in the production of online gambling. This trend has presented regulators with challenges related to public health and money laundering.
  • Regulation of online gambling is tightening. The UK has released new online gambling guidelines; Australia stepped up enforcement against illegal online gambling; Sweden established and developed a licensing system; and some Canadian provinces opened the market and clarified the relevant standards.
  • Online gambling poses money laundering risks. According to data from ISS ESG’s Norm-Based Research, while only a small percentage of companies facing major controversies associated with money laundering were in the casino/gaming industry, the bulk of those were engaged in online gambling operations.
  • ISS ESG’s Sector-Based Screening researches and analyses corporate involvement in gambling activities. This resource can assist investors in monitoring their portfolios in light of the evolving challenges in the online gambling market.

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