Crypto casinos: the gaping hole in the UK’s anti-money laundering arsenal
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13 Aug 2025 •
Reading time: 2 minutes A Betconix investigation reveals that online casinos using cryptocurrencies are exploiting loopholes in UK anti-money laundering regulations, thereby circumventing the controls imposed on licensed operators.
The UK market is one of the strictest in the world when it comes to anti-money laundering (AML) in the gambling sector. However, a new investigation by Betconix, a platform specialising in iGaming market intelligence, shows that some players are completely escaping regulation: online casinos based on cryptocurrencies.
According to the report, these unregulated operators exploit the speed and anonymity of crypto transactions to transfer illicit funds across borders, often in full view of the public.
Strict but ineffective regulation of crypto gambling
The United Kingdom imposes specific obligations on licensed gambling operators: identity verification (KYC), anti-money laundering (AML) controls, and customer due diligence (CDD) procedures.
These measures have already resulted in heavy financial penalties against several big names in the industry, deemed too lax in their compliance.
However, offshore crypto casinos are not subject to this legal framework. As a result, there are no audit requirements and no obligation to verify players.
‘Crypto gambling is no longer a niche market, but it continues to operate in the shadows. Criminals exploit the speed and anonymity of transactions to launder money across borders,’ the Betconix report points out.
The UKGC faces a wall
The UK Gambling Commission (UKGC) is aware of the problem and has required that any crypto operator wishing to enter the UK market undergo a full audit.
However, no crypto casino has complied with this requirement to date, and the UK therefore has no licensed operators in this segment.
This lack of cooperation makes control virtually impossible, leaving the field open to platforms established in offshore jurisdictions where supervision is virtually non-existent.
Offshore: the marketing powerhouse
These foreign sites know how to attract British players: generous bonuses, attractive payout rates, guaranteed anonymity.
Although direct deposits in cryptocurrency are prohibited by British regulations, there are still ways to get around this, notably via e-wallets such as Neteller or Skrill, which are not subject to certain restrictions applied to credit cards.
This flexibility attracts players looking for speed and discretion, at the expense of security and legal compliance.
The UK dilemma: security vs. attractiveness
By tightening the rules, the UK has significantly strengthened player protection and the fight against illicit financial flows. But this strategy also has a perverse effect, as it pushes some players towards illegal offerings, which are better suited to modern digital habits and often more attractive on paper.