Changes and Challenges in Online Gambling: Tightening Regulation Amidst Rising Money Laundering Concerns
SEPTEMBER 15, 2022
- 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.