Fraud and money laundering schemes cost consumers and businesses billions of dollars every year. In the absence of a regulated online gambling environment, there is no way to guarantee protections against such abuses.

In currently proposed legislation to regulate Internet gambling, licensed operators would be required to implement proven security controls to ensure consumers are protected and each financial transaction is safe, secure and free from fraud and abuse.

Protecting Against Money Laundering and Fraud

Under proposed legislation, licensed Internet gambling operators would be required to institute safeguards to combat the threat of fraud and money laundering.

• Money transacted on Internet gambling sites would be traceable, as they would come directly from an established banking network
• Transactions could be cross-checked with existing databases used in anti-fraud, anti-money laundering and anti-terrorism efforts
• Payments to an Internet gambling operator could be held in escrow, giving consumers an opportunity to contest unauthorized transactions (e.g. conducted with a stolen credit card)

Resources

• Demonstration on how the safeguards to protect Internet gambling transactions work
• Congressional Hearing Highlights How Regulated Internet Gambling Would Better Protect American Consumers and Integrity of Financial Transactions