Money Laundering Compliance Risks in Legalized Sports Gambling

October 23, 2018

After the Supreme Court’s decision in Murphy v. National Collegiate Athletic Association, multiple states have authorized and are beginning to regulate sports betting. O’Melveny’s Nicole Argentieri, Irwin Raij, Steve Olson, Eric Sibbitt, Jeremy Maltby, Laurel Loomis Rimon and Marjorie B. Truwit discuss the new money laundering risks businesses engaging in legal sports gambling will face in Westlaw Journal Bank & Lender Liability.

“Although there is much speculation regarding whether and when Congress may establish a national regulatory structure applicable to sports betting in the United States, federal antimoney laundering laws are already broadly applicable to any licensed sportsbook operating here,” the authors write. “Law enforcement has engaged with the gaming industry, offered guidance, and taken enforcement action where it has felt it necessary. Going forward, we expect to see increased focus in the use of emerging technologies and data collection. Blockchain has already emerged as a platform in online casino gambling. In the esports arena, the use of virtual currency within gaming platforms is well-established and widely accepted for in-game payments and upgrades, among other things.”

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