The Isle of Man’s gambling sector presents an overall ‘medium high’ risk of money laundering, according to a new assessment published by the Gambling Supervision Commission (GSC).

That’s according to the findings of the Gambling Sector Money Laundering Risk Assessment 2026, the first dedicated review of money laundering risk across the island’s gambling industry.

The government says the review covers online and terrestrial gambling, as well as associated and ancillary activities within the wider sector.

The assessment concludes that the overall risk level is ‘medium high’.

This, according to the report, is driven primarily by the international nature and scale of online gambling, which exposes the island to increasingly sophisticated global criminal methodologies.

By contrast, the terrestrial sector, which largely serves a domestic customer base, is assessed as presenting a ‘medium low’ risk.

Since 2020, the Commission says it has strengthened its regulatory, supervisory and enforcement framework.

The GSC says measures include the creation of a dedicated anti-money laundering and countering the financing of terrorism division, enhanced data returns, refined risk-based inspection models, improved entry controls and the development of a formal enforcement framework.

However, the report states that the threat landscape has evolved rapidly in recent years.

It highlights the increasing exploitation of online gambling platforms and business-to-business software supply chains by organised crime groups, particularly in East and Southeast Asia.

According to the assessment, these groups use such platforms to facilitate large-scale laundering, cyber-enabled fraud and the movement of illicit funds across borders.

The sector also remains exposed to inherent vulnerabilities associated with online gambling, including high volumes of transactions, remote onboarding processes, varied payment methods and the growing use of virtual assets.

Mark Rutherford, Chief Executive of the Gambling Supervision Commission, said the assessment demonstrated that the Island faced the same evolving global threats as other leading jurisdictions.

He said: ‘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. We have increased our supervisory intensity, expanded our enforcement tools, and deepened cooperation with domestic and international partners.

‘The findings give us a sharper lens on where risks lie, particularly around complex cross-border structures, technology-driven threats and B2B arrangements, and they equip both the GSC and industry to respond decisively.’

Justice and Home Affairs Minister Jane Poole-Wilson MHK said the island’s reputation as an international finance centre depended on its willingness to respond to emerging threats.

She said: ‘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.’

The Commission said the publication of the assessment reinforces the island’s commitment to maintaining high regulatory standards and addressing financial crime risks within the gambling sector.