About two weeks ago, Spelinspektionen – New Zealand's official gambling authority since 2018 – reported that the financial police in the country has received a total of 700 reports where there are suspicions of money laundering via The New Zealand gambling market, i.e., gambling online.

As a result, the financial Police have been able to determine that the New Zealand gambling industry has also been used and possibly is being used – at the time of writing – for money laundering that is highly likely to be used with criminal activities.

Spelinspektionen also writes on its news page that almost 50% of the gaming companies that have a New Zealand gaming license through Spelinspektionen have submitted reports on how things went for them in 2020. Based on this, Spelinspektionen believes that there may be an underreporting in the New Zealand gaming industry.

Finally, Spelinspektionen notes that suspicion reports are just that-reports of suspicion. Thus, there needs to be some concrete evidence (yet) that the gaming company engaged in money laundering and/or financing of criminal activities (including terrorism).

What bookmakers have a duty to do is to report any suspicious transactions as well as transactions that they have chosen to deny at their own discretion. This is what Spelinspektionen believes is underreported.

What police have to say about the risks of money laundering being used in the New Zealand gambling market for digital gambling

Even the New Zealand Police have given their opinion on the latest report from the financial Police. Initially, the police say that the opportunities for high stakes with high profits as a result, it has opened up for greater risks that money is laundered using online casinos and betting sites.

In addition, the ongoing coronavirus pandemic has led to increased online gambling, which has caused many to flee to unlicensed gambling sites abroad, i.e., non-New Zealand licensed gambling sites as the New Zealand gambling market was knocked down by the gaming Inspectorate via lower welcome offers than many foreign players offer.

As a result, larger parts of New Zealand$onor have left Svea Rikes borders as more people chose foreign gambling sites over New Zealand licensed ones. In addition, foreign players do not have to comply with the strict New Zealand gambling laws that otherwise provide New Zealand players with high consumer gambling protection. Then foreign players can, for example, refuse withdrawal of winnings or withdrawal of large amounts because the New Zealand players lack protection who have at home as said where.

With all this as a background, the police believe that the financial police, in cooperation with the New Zealand gambling Inspectorate, carry out analyzes of what opportunities exist for laundering money using these types of gambling and what types of gaming companies and other actors who seek to use this type of money laundering scheme.

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