Reported by Richard Vanderford

The rapid growth of the sports betting sector and a lack of uniform regulations contribute to “significant and increasing money-laundering risks,” the Treasury said Wednesday as part of an expansive report on money-laundering concerns.

An estimated 67.8 million Americans are expected to bet on Sunday’s Super Bowl, a 35% increase from last year, according to survey results published Tuesday by the American Gaming Association, a trade group. The AGA estimates that 28.7 million of those bettors will place their wagers on a legal U.S. site.

Online sites such as FanDuel, DraftKings and BetMGM allow gamblers to place bets on their smartphones. Bets can be on game outcomes but also on the finer points of a match, such as how many 3-pointers a basketball player sinks or what football player might score the first touchdown.

The money-laundering risk from online sports gambling is similar to that seen in traditional casinos. An individual might collude with confederates on bets to hide the origin of funds, or a person could deposit money into a betting account and withdraw it after minimal wagering, the Treasury said.

Read full report: https://www.wsj.com/articles/sports-gambling-a-growing-money-laundering-risk-u-s-says-b13d5ab8