When money is stolen from a business by an employer or a family member and then gambled away, the victims are often left asking how such large sums could pass through a licensed gambling operator without anyone asking where the money came from.
In many cases, the answer is that the operator’s anti-money laundering (AML) and source of funds checks were not applied properly – and that failure can give the victim a route to recovery.
At Mackrell, we act for businesses and families whose funds have been misappropriated and subsequently used for gambling. We have brought a number of these claims against gambling operators (both located in the UK and off-shore) and have achieved substantial settlements for our clients.
What are operators required to do?
Gambling operators licensed in Great Britain must comply with the Gambling Act 2005, the Proceeds of Crime Act 2002 (POCA) and the Terrorism Act 2000. Casino operators are also subject to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Under Licence Condition 12.1.1 of the Gambling Commission’s Licence Conditions and Codes of Practice, operators must have AML policies, procedures and controls in place, implement them effectively and keep them under review.
The Gambling Commission is clear that all gambling operators have a responsibility to keep financial crime out of gambling.
POCA requires operators to be alert to customers gambling money acquired unlawfully – whether to obtain ‘clean’ money in return or simply using criminal proceeds to fund gambling. Both are treated as money laundering.
In practice, this means operators should be asking questions when a customer’s deposits and losses are out of step with what they are known to earn or own – and should be obtaining evidence of the source of the customer’s funds before allowing gambling to continue.
The Gambling Commission’s 2026 risk assessment rates the remote casino sector as high risk for money laundering and specifically identifies AML thresholds that are inappropriate for the customer base, or predominantly loss-based, as a high risk.
How can victims recover stolen funds?
Where stolen money has been paid to a gambling operator, the victim may have civil claims against the operator directly, even though the operator was not the wrongdoer. Depending on the facts, these claims can include tracing the stolen funds into the operator’s hands, knowing or unconscionable receipt, and unjust enrichment. The strength of the claim will often turn on what the operator knew, or ought to have known, and whether its AML and source of funds checks were adequate.
As set out above, gambling companies and online casinos have obligations to check the source of funds and to ensure that they have come from a legitimate resource.
Operators also need to be aware of whether a customer can afford to gamble the money they are gambling and should assess whether the gambler is vulnerable and at risk of harm if they continue to gamble. In some situations, gamblers will have requested to a gambling operator that they be self-excluded (if order to assist them with their habit).
If a gambling operator ignores such a request or failed to carry out checks to ensure that the person trying to gamble is not self-excluded, then this could be a route to recovery of some of the monies which have been lost.
Many gambling operators operate from outside the UK and the rules and regulations they are required to adhere to are not the same as if they were UK-based. However, they will still have internal compliance procedures which they must follow.
We acted for the claimant in Dhir v Flutter Entertainment Plc [2021] EWHC 1510 (QB), High Court proceedings seeking to recover funds which had been advanced to a business associate and then used to gamble with Paddy Power. The case considered trusts and fiduciary obligations, tracing, knowing or unconscionable receipt and unjust enrichment.
Our experience
Mackrell has handled a number of stolen funds claims against gambling operators, involving betting, casino, and online and offline platforms. Many of these claims have resolved through negotiation, and we have achieved substantial settlements from gambling operators for our clients.
Claims against gambling operators can involve significant disparities in resources, complex corporate structures, cross-border issues and well-resourced legal teams. We provide realistic, candid risk assessments from the outset and a considered pre-action strategy, whether we are negotiating a settlement or pursuing high-value litigation in the High Court.
Speak to our gambling litigation team
If your business or family has lost money that was stolen and then gambled, please contact our gambling litigation team for an initial discussion about whether you may have a claim against the operator.
