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.
14 - Society Lotteries and external lottery managers (remote and non-remote)
Sector rating
| Sector | Previous overall risk rating | Current overall risk rating |
|---|---|---|
| Society lotteries (remote and non-remote) | Low | Low | External Lottery managers (remote and non-remote) | Low | Low |
Society lotteries and the National Lottery are being assessed separately for the purposes of this assessment as they are two separate sectors and the risks posed differ.
For further information relating to the inherent risks (including vulnerabilities, consequences and controls), see our previous 2020 risk assessment.
Inherent risk
| 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) | Low (1) | Low (1) | Decrease in likelihood | Operator control | Third party business relationships and business investors | Low (1) | Low (1) | Low (1) | No change | Operator control | Licensee failing to transfer lottery proceeds to charities | Low (1) | Medium (2) | Low (2) | Increase in impact | Licensing and integrity | Operator being acquired by organised crime to launder criminal funds | Low (1) | Low (1) | Low (1) | No change | Customer | Anonymous customers (Non-Remote) | Low (1) | Low (1) | Low (1) | No change | Customer | False and stolen identity documentation | Low (1) | Low (1) | Low (1) | No change | Customer | Customer not physically present (remote) | Low (1) | Low (1) | Low (1) | No change | Product | Interactive instant win games (online) | Low (1) | Low (1) | Low (1) | No change | Products | Scratch cards or interactive instant win games | Low (1) | Low (1) | Low (1) | No change | Means of payment | Cash transactions (non-remote only) | Low (1) | Low (1) | Low (1) | No change |
Case study
Licensee failing to transfer lottery proceeds to charities
An External Lottery Manager (ELM) was convicted of misusing lottery proceeds. The Chief Executive Officer (CEO) used lottery proceeds to cover the costs of running the business and failed to pass on the proceeds to charities.
2023 money laundering and risks - Arcades Next section
2023 money laundering and risks - National Lottery (non-remote and remote)
Last updated: 13 June 2024
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