Isle of Man raises gambling sector money laundering risk to medium high

• The Isle of Man Gambling Supervision Commission has upgraded the gambling sector’s money laundering risk from “medium” to “medium high” in its 2026 National Risk Assessment.
• Online gambling drives the elevated rating due to its international customer base and high transaction volumes, whilst terrestrial gambling remains at medium-low.
• Organised crime groups from East and Southeast Asia are identified as a primary threat exploiting online platforms and B2B software supply chains.

The  Isle of Man Gambling Supervision Commission has raised the money laundering risk level for the island’s gambling sector from “medium” to “medium high” in its latest National Risk Assessment.

Published on 25 February 2026, the report marks the first dedicated, data-driven review of money laundering threats across the Isle of Man’s gambling ecosystem.

The assessment updates the position last evaluated in 2020. It covers online and terrestrial gambling as well as associated and ancillary activities within the broader sector.

Online gambling drives the upgraded rating

The elevated risk classification is driven primarily by the international nature and scale of the island’s online gambling operations. High transaction volumes, a global customer base and remote onboarding processes all contribute to the sector’s exposure.

By contrast, terrestrial gambling continues to be assessed as “medium low” risk, a rating consistent across both the NRA and secondary reporting. The land-based market serves a predominantly domestic audience and handles lower transaction levels.

Authorities stressed that the risk classification reflects the structural characteristics of the gambling sector rather than shortcomings in compliance standards. The GSC said the NRA is intended to provide a realistic picture of where and how the sector could be exploited.

Betting and gaming remain a cornerstone of the Isle of Man’s economy, with eGaming accounting for 14.9 per cent of the economy in 2022/23. The island hosts numerous international operators.

Organised crime and technology-driven threats

The GSC identified organised crime groups, particularly those operating from East and Southeast Asia, as a primary threat. These networks are increasingly exploiting online gambling platforms and B2B software supply chains to facilitate large-scale laundering and cyber-enabled fraud.

Key vulnerabilities outlined in the report include high volumes of digital transactions, diverse payment methods including virtual assets, cross-border invoicing flows among software providers and limited visibility over end users in B2B arrangements.

The assessment also flagged emerging risks from artificial intelligence, deepfakes and so-called “turnkey solutions” that allow rapid establishment of gambling operations with limited scrutiny. Ancillary providers, especially software suppliers, face additional risks due to opaque ownership structures and cross-border business models.

The report noted that the profile of licence holders has shifted since 2023, reducing exposure to higher-risk jurisdictions. In October 2025, the GSC tightened anti-money laundering and counter-terrorist financing guidance for online gambling licence holders with network services permissions.

Since 2020, the Commission has established a dedicated AML/CFT division, introduced enhanced data returns, refined risk-based inspection models and developed a formal enforcement framework. The regulator recently demonstrated its enforcement resolve by imposing a £200,000 civil penalty on Shelgeyr Limited in February 2026 for widespread AML failures.

Four regulatory objectives

The GSC outlined four main objectives following the assessment. These include:

• strengthening oversight of supply chains and B2B arrangements;
• expanding data analytics and intelligence sharing across gambling and related industries;
• providing targeted guidance on suspicious activity reporting;
• and mapping structures tied to unregulated gambling operations.

Operators are expected to integrate the NRA’s findings into their risk management frameworks. The GSC has asked licensees to remain alert to evolving threats, review customer and technology risk assessments and ensure controls remain effective and proportionate.

Mark Rutherford, Chief Executive of the GSC, noted that the assessment highlights the same evolving global threats facing other leading jurisdictions, adding that the Isle of Man’s regulatory framework has continued to strengthen and adapt through enhanced supervisory intensity, expanded enforcement tools and deeper cooperation with domestic and international partners.

He said the findings provide a sharper focus on risks tied to complex cross-border structures, technology-driven threats and B2B arrangements.

Jane Poole-Wilson MHK, Minister for Justice and Home Affairs, said:

“The Isle of Man’s reputation as an international finance centre depends on our willingness to confront and respond to emerging threats.”

She added:

“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. I welcome this report and encourage all licence holders and associated sectors to use its findings to strengthen their controls and safeguard the Island’s standing as a well-regulated jurisdiction that welcomes high quality well-run business.”

The timing of the assessment carries additional weight as the Isle of Man prepares for its MONEYVAL mutual evaluation in October 2026.

That review will assess the effectiveness of the jurisdiction’s anti-financial crime regime on the international stage. For operators licensed on the island, the message is clear: compliance expectations are rising, and regulators have both the tools and the appetite to act.