Online gambling refers to the process of betting or wagering money on games that are played over the internet. This activity has become a major form of entertainment in many parts of the world, with players able to access casino games from the comfort of their own homes. The industry has been growing rapidly in recent years, thanks to increased accessibility and convenience. It is important to know the risks involved before playing for real money.

Despite its rapid global growth, gambling is associated with serious harms to health, including financial stress, relationship breakdown and family violence, substance use disorders and mental illness. It can also contribute to the erosion of civil institutions via corruption and corporate political activity, and facilitate income-generating crimes such as theft and fraud. It is therefore essential that governments take steps to minimize the negative impacts of gambling, particularly in jurisdictions where it has been legalized and promoted.

In the United States, there is significant variability in laws and regulations governing online gambling. Some states have legalized both online casinos and sports betting, while others have opted for outright prohibitions. It is crucial to check whether online gambling is legal in your area before playing.

Despite stringent regulation and heightened due diligence, the gambling industry is a lucrative avenue for illicit actors seeking to launder their dirty money. This article explores the different money laundering risk factors that compliance staff should be aware of when dealing with online gambling.