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Guidance

The 2023 money laundering and terrorist financing risks within the British gambling industry

The Gambling Commission's money laundering and terrorist financing risk assessment for the British gambling industry in 2023.

  1. Contents
  2. 13 - Arcades

13 - Arcades

Sector rating

Sector Previous overall risk rating Current overall risk rating
Adult Gaming Centres (AGCs) Medium Medium
Family Entertainment Centres (FECs) Low Low

For further information relating to the inherent risks (including vulnerabilities, consequences and controls), see our previous 2020 risk assessment.

Inherent risks

Vulnerability Risk Likelihood of event occurring Impact of event occurring Overall risk Change in risk
Operator control Operators failing to comply with prevention of money laundering and terrorist financing legislation and guidance Low (1) Medium (2) Low (2) No change
Operator control Lack of competency of key personnel and licence holders which can then be exploited by criminals seeking to launder the proceeds of crime (AGCs only) Low (1) Medium (2) Low (2) No change
Operator control Lack of competency of key personnel and licence holders which can then be exploited by criminals seeking to launder the proceeds of crime (FECs only) Low (1) Medium (2) Low (2) No change
Operator control Third party business relationships and business investors Low (1) Medium (2) Low (2) New risk
Licensing and Integrity Arcade businesses being acquired by organised crime to launder criminal proceeds (AGCs only) Low (1) Medium (2) Low (2) No change
Licensing and Integrity Arcade businesses being acquired by organised crime to launder criminal proceeds (FECs only) Low (1) Low (1) Low (1) No change
Customer Anonymous customers laundering proceeds of crime through gaming machines (AGCs only) Medium (2) Medium (2) Medium (4) No change
Customer Anonymous customers laundering proceeds of crime through gaming machines (FECs only) Low (1) Low (1) Low (1) No change
Product Automated ticket redemption (ATR) machines used to facilitate the laundering of criminally derived funds (AGCs only) Low (1) Medium (2) Low (2) No change
Product Gaming machines, Category B3 being used to launder criminally derived funds (AGCs only) Medium (2) Medium (2) Medium (4) No change
Product Privacy booths (AGCs only) Medium (2) Medium (2) Medium (4) No change
Product Privacy booths (FECs only) Medium (2) Low (1) Low (2) No change
Product Bring your own device (BYOD) Low (1) Medium (2) Low (2) No change
Means of payment Cash transactions Medium (2) Medium (2) Medium (4) Increase in likelihood
Means of payment Cashless payments Medium (2) Medium (2) Medium (4) No change
Means of payment Ticket-in-ticket-out (TITO) facilities used to launder funds, when used in conjunction with ATR machines (AGCs only) Low (1) Medium (2) Low (2) No change
Means of payment Dyed notes Low (1) Medium (2) Low (2) No change
Means of Payment Scottish notes Low (1) Medium (2) Low (2) New risk

Case studies

Dyed notes
Several hundred pounds of stained notes were found in gaming machines located at an AGC.

Scottish notes
Counterfeit Scottish notes have been found in gaming machines at several venues across the UK.

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2023 money laundering and risks - Bingo (non-remote)
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2023 money laundering and risks - Society lotteries and external lottery managers (non-remote and remote)
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