AGA issues guidelines on mitigating crypto laundering in AML best practises

ByBDG Game
The association released the guidelines in an effort to safeguard an industry that has dealt with several major money laundering scandals over the last two years.

AML best practises

More than any time since the 2018 PASPA decision, anti-money laundering best practices at the largest casinos on the Las Vegas Strip have come under intense scrutiny.

Heightened AML Scrutiny on Las Vegas Casinos and Sportsbooks Ahead of G2E

Background

Following the landmark 2018 PASPA repeal, scrutiny on anti-money laundering (AML) practices at major Las Vegas Strip casinos has intensified. In 2025 alone, three prominent casinos settled with the Nevada Gaming Commission over AML compliance failures.

AGA’s Comprehensive AML Guide

Ahead of the Global Gaming Expo (G2E) in Las Vegas, the American Gaming Association (AGA)—representing the $329 billion US casino industry—released a 64-page guide outlining best practices for building robust AML frameworks, applicable across the entire gambling sector.

  • The guide places special emphasis on the emerging threat of crypto laundering, reflecting the growing use of virtual currencies in gaming transactions.

  • It encourages casinos and sportsbooks to implement risk-based AML programs that comply with the Bank Secrecy Act to deter illegal financial activity and protect the industry’s integrity.

AML Risks in Sports Betting

Sports betting, like traditional casino games such as baccarat or roulette, presents unique AML challenges:

  • Binary wager outcomes enable money launderers to “wash” funds by betting on both sides of an event, minimizing risk and receiving clean payouts after losing only the vigorish (the casino’s commission).

  • The use of “beards”—placing bets on behalf of unidentified third parties—further complicates AML enforcement, as it conceals the true source of funds.

Crypto Laundering Challenges

A notable case involves pro poker player Damien LeForbes and bookmaker Wayne Nix, accused of laundering millions through casinos including Resorts World:

  • LeForbes allegedly advised clients to evade detection by splitting large crypto payments into smaller amounts sent to multiple wallet addresses, avoiding exchanges to reduce traceability.

  • Authorities seized hardware wallets during raids, highlighting the complexities of tracking crypto laundering.

AGA’s Crypto Transaction Recommendations

The AGA recommends that virtual currencies be converted into US dollars before use in sportsbooks, ensuring those transactions are covered by the same regulatory scrutiny and Suspicious Activity Report (SAR) requirements as cash transactions.

Upcoming G2E Conference

Several sessions at G2E will focus on AML best practices, featuring compliance officers from major casinos like MGM, BDG Game, and Resorts World. These panels aim to share insights on improving industry-wide AML controls in response to evolving threats.

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