Key Moments:
- The Isle of Man Gambling Supervision Commission (GSC) assigned a medium-high money laundering risk to the gambling industry in the 2026 sector risk assessment.
- The risk profile has been raised mainly due to the international scale and transaction volume of online gambling.
- Authorities highlighted recent improvements in regulatory controls, including a dedicated AML/CFT division and stricter oversight since 2020.
Risk Assessment Highlights International Exposure
The Gambling Supervision Commission (GSC) has determined that the Isle of Man’s gambling environment carries a medium-high risk of money laundering, according to the jurisdiction’s 2026 Gambling Sector Money Laundering Risk Assessment (ML NRA) published on February 25. This marks the first time the island’s gambling ecosystem has been reviewed in a data-driven, dedicated analysis focusing on money laundering threats.
The assessment credited much of the industry’s risk rating to the global reach and high transaction volume seen in the online gambling segment. In contrast, land-based gambling, which mainly services the local population, was evaluated as medium-low risk. Differences from the 2020 risk rating reflect shifts in the international financial crime landscape.
Key Vulnerabilities Identified in Online Gambling
The GSC highlighted that organized crime groups, specifically those operating from East and Southeast Asia, have increasingly targeted online gambling operators and B2B software suppliers. Critical vulnerabilities observed included the substantial volume of financial transactions in remote settings, digital onboarding processes, various payment channels (such as virtual assets), cross-border invoicing among software providers, and limited transparency concerning end users within B2B connections. The regulator attributed these features to an inherent risk of widespread laundering and cyber-driven fraud.
| Gambling Type | Risk Level | Key Drivers |
|---|---|---|
| Online Gambling | Medium-High | International scope, high transaction volume |
| Terrestrial Gambling | Medium-Low | Local customer base |
Strengthened Oversight Since 2020
Despite the increased overall risk, the GSC reported significant enhancements in supervision in recent years. Measures introduced since 2020 consist of a dedicated division for anti-money laundering and counter-terrorist financing (AML/CFT), more detailed data collection requirements, refined risk-based inspections, reinforced criteria for new market participants, and a formal enforcement approach. According to the regulator, these actions aim to establish a more responsive and robust regulatory system.
Shift in License Holder Demographics Increases Complexity
The recent assessment observed changes in the composition of license holders since 2023, which has reduced exposure to jurisdictions considered higher risk. In October of the previous year, the GSC implemented stricter guidelines for online gaming licensees, with updated anti-money laundering and counter-terrorist financing requirements for those offering network services. Nevertheless, regulators cautioned that as financial activities become distributed among more operators, monitoring responsibilities have grown more complex. Software suppliers and other ancillary service providers were highlighted as carrying additional risks due to unclear ownership and international business arrangements.
Industry and Government Responses
Mark Rutherford, Chief Executive of the Gambling Supervision Commission, said the report provides a clearer view of where threats are emerging while highlighting progress in the island’s regulatory response. “This assessment shows clearly that while the Isle of Man faces the same evolving global threats as other leading jurisdictions, our regulatory framework has continued to strengthen and adapt,” Rutherford said.
He added that the findings give both regulators and industry a sharper focus on risks tied to complex cross-border structures, technology-driven threats and B2B arrangements.
Jane Poole-Wilson, Minister for Justice and Home Affairs, said the island’s reputation as an international finance centre depends on confronting emerging risks. She said, “The Isle of Man’s reputation as an international finance centre depends on our willingness to confront and respond to emerging threats. Whilst this National Risk Assessment highlights challenges — particularly from sophisticated organised crime groups operating across borders — it also shows the strength of our controls to mitigate these.”
She noted that while the assessment highlights challenges, particularly from sophisticated cross-border criminal groups, it also demonstrates the strength of existing controls. Adding that the findings should be used by licence holders to strengthen their control and safeguard the Island.
Economic Importance and Future Outlook
Authorities reiterated that while the gambling industry is integral to the Isle of Man’s economy, it faces ongoing risks of money laundering because of its international ties, industry scale, and fast-changing technological environment. The GSC confirmed that efforts are in progress to reinforce regulatory oversight, promote better data sharing, and deepen cooperation between government, regulators, and industry. These initiatives are intended to support the broader strategy against financial crime as international scrutiny of the sector intensifies.
In January, the Isle of Man government renewed its public commitment to the iGaming industry, emphasizing its central role in the economy as the Island prepares for a more challenging regulatory environment.
- Author
Daniel Williams
