Tightening gambling regulations imminent for UK's casino sector
In 2025, British casino operators are set to experience significant updates in anti-money laundering (AML) requirements and data protection regulations. These changes are a response to increased scrutiny from regulators and the evolving nature of criminal activities.
### Updated AML Requirements
The new AML rules demand a risk-based approach, requiring casinos to continuously assess the risks associated with their products, channels, and customers. Operators must verify players' identities, ages, and residential addresses at onboarding using government-issued IDs, biometric checks, and adverse media screening.
Ongoing customer due diligence is mandatory, with enhanced due diligence necessary in high-risk cases. For high-risk customers, casinos must verify the source of funds or wealth to prevent laundering of illicit funds. The UK government has elevated the casino sector's AML risk rating from low to medium, reflecting the increased volume and complexity in remote gambling and new criminal tactics.
### Data Protection Regulations
Operators must safeguard customer data rigorously, complying with local data protection laws like the UK GDPR. This includes secure handling, storage, and processing of personal information informed by AML and KYC procedures to avoid breaches.
### Regulatory Changes and Penalties
From October 10, 2025, the UK Gambling Commission (UKGC) will introduce a new seven-step approach, with fines potentially exceeding 15% of Gross Gambling Yield (GGY) for severe breaches. The new fines regime aims for transparency and proportionality, making compliance more critical to avoid heavy financial penalties.
### Immediate Steps for British Casino Operators
To mitigate money laundering risks, protect customer data, and comply with more stringent regulatory demands, British casino operators are advised to review and enhance their AML programs, improve source of funds checks, strengthen data protection measures, stay updated on regulatory frameworks, increase training and awareness, and audit and monitor compliance continuously.
The General Data Protection Regulation (GDPR), which will come into force in mid-2018, introduces a stricter data protection compliance regime with tiered financial penalties. Under the GDPR, data controllers and processors whose core activities involve regular and systematic monitoring of data subjects on a large scale will have to appoint a Data Protection Officer.
These changes underscore the need for British casino operators to be proactive and adaptable in their approach to AML and data protection regulations to ensure continued compliance and avoid significant penalties.
- In light of the updated AML requirements, British casino operators must implement a risk-based approach, verifying players' identities, ages, and addresses, and continuously assessing risks associated with their products, channels, and customers.
- To comply with the new data protection regulations, operators must safeguard customer data rigorously, securing its handling, storage, and processing, and ensuring compliance with regulations like the UK GDPR.
- From October 10, 2025, the UK Gambling Commission (UKGC) will introduce a new seven-step approach, with severe breaches potentially leading to fines exceeding 15% of Gross Gambling Yield (GGY), emphasizing the importance of compliance to avoid heavy financial penalties.
- To adapt to the stricter AML and data protection regulations, British casino operators are recommended to enhance their AML programs, strengthen source of funds checks, improve data protection measures, stay updated on regulatory frameworks, increase training and awareness, and continuously audit and monitor compliance.
