Regulation

Casinos Face $34M in AML Fines as Player Protections Weaken

October 6, 2026
Priya Patel

Casinos were fined a total of $34 million in September alone due to failures in anti-money laundering (AML) and know-your-customer (KYC) procedures, a development that directly affects players and those vulnerable to gambling harm.

The fines were disclosed at the Global Gaming Expo (G2E), where Melissa Gomez Nelson, a partner at Dentons US, detailed how regulators collected these penalties following investigations into AML and KYC shortcomings. “That’s what regulators collected from casino ownership in response to investigations related to AML (anti-money laundering) and KYC (know-your-customer) concerns,“ Nelson said during a panel titled “Identifying and Managing Emerging Financial Crime Risks.”

Among the cases cited, one casino allowed a man to gamble on 80 separate days without verifying the source of his funds. Another faced penalties for systemic AML oversight weaknesses, including historical lapses. A third casino was fined for permitting a high-risk gambler to continue playing despite receiving a tip and designating the individual as high-risk. These incidents highlight gaps in player protection and regulatory compliance.

Experts at G2E stressed that AML programs must move beyond mere documentation. Abigail Singley, advisory director at PwC, noted that enforcement now prioritizes the effectiveness of risk-based programs over simply having policies on paper. “It’s really about being able to demonstrate and implement a true risk-based program that’s effective in identifying and ultimately actioning on risk to the operator,” Singley said.

Elise Lebourg, senior manager of Forensics & Integrity Services at Ernst & Young, pointed out that many AML and KYC efforts have become routine exercises, often limited to checking boxes without accurate risk assessment or meaningful follow-up. She emphasized the importance of updating risk assessments in line with product developments and ensuring the outputs are actionable for business units.

Dave Foppert, Vice President and AML Officer at DraftKings, observed a decline in AML policy quality over the past year. “I think we’ve all seen this over the last 12 months, where having a policy is the floor, not the ceiling,“ he said. Foppert highlighted the need for strong communication between compliance teams and those who interact with customers daily, such as marketing and product teams. He noted that breakdowns in these partnerships often contributed to enforcement actions.

For players, these enforcement actions underscore the necessity of robust AML and KYC measures to prevent financial crime and identify problem gambling early. Weaknesses in these areas can allow high-risk gambling behavior to go unchecked, increasing harm to vulnerable individuals.

Players should be aware that regulatory bodies actively monitor casinos for compliance, and failures can lead to significant fines and operational scrutiny. This ongoing regulatory focus aims to enhance player protection and promote safer gambling environments.

For further information on player safety and responsible gambling, see our coverage on Responsible Gambling and regulatory developments in the Regulation section.

Additional insights on responsible gaming campaigns targeting younger bettors are available in CDC Gaming’s recent report: G2E: Responsible gaming campaigns must spread beyond young sports bettors.

Source: CDC Gaming.

Priya Patel
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