FinCEN's Proposed Overhaul of Casino AML Could Tighten Crypto Controls

23 October 2026

The Financial Crimes Enforcement Network (FinCEN) has proposed a sweeping overhaul of casino anti-money laundering (AML) requirements that would likely tighten identity verification and risk-based monitoring, especially for online casinos dealing with cryptocurrencies like bitcoin.

The proposed rule, outlined in an April 2026 Ballard Spahr legal alert, would require each casino to develop and implement a written AML/combating the financing of terrorism (CFT) program that is risk-based and reasonably designed to prevent money laundering, terrorist financing, and other illicit finance activity. Casinos would be required to maintain robust risk assessment processes that identify money laundering and terrorist financing risks arising from products, services, distribution channels, customers, and geographic locations. The proposal would also require casinos to incorporate FinCEN’s AML/CFT National Priorities into their risk assessment processes and program design.

FinCEN’s 2019 remarks on convertible virtual currency did not establish any new regulatory expectations or requirements, but the regulator has been clear that casinos accepting and transmitting cryptocurrency must register as money services businesses (MSBs) with FinCEN, develop and maintain written AML programs, implement know-your-customer (KYC) programs to ensure patrons who cash in or out with cryptocurrency have a legitimate source of funds, identify and report suspicious transactions, and file currency transaction reports (CTRs) on transactions over $10,000.

Casinos dealing in government-issued currency must file suspicious activity reports (SARs) on transactions over $5,000, while casinos that fall under the definition of an MSB must file SARs on suspicious cryptocurrency transactions over $2,000.

In 2024, FinCEN published a notice proposing renewal, without change, of existing information collection requirements for casino AML programs. The notice specifies that casino AML programs must be in writing and independently tested for compliance with a scope and frequency commensurate with the money laundering and terrorist financing risks posed by the casino’s products and services.

While FinCEN has granted limited exceptive relief allowing casinos to use suitable non-documentary methods to verify the identity of online customers, the regulator has said the relief from physically inspecting a document would apply only if casinos and other gaming operators adopt compliance measures similar to those already used by banks, brokers, and certain other financial institutions that are eligible to fully verify customer accounts remotely.

Ballard Spahr’s 2026 legal alert notes that the proposed overhaul would also require casinos to designate an individual responsible for day-to-day compliance who is located in the United States and accessible to, and subject to oversight and supervision by, FinCEN.

The American Gaming Association (AGA) has asked FinCEN to codify relief allowing casinos flexibility to verify identity by documentary or non-documentary means. In its 2025 anti-money laundering best practices, the AGA suggests requiring virtual currency to be converted to U.S. dollars before use for gaming at a slot machine, table game, sportsbook, or other gaming area.

However, FinCEN’s FAQ on casino recordkeeping and reporting makes clear that casinos are required to file CTRs for “cash in” transactions, including “bets of currency.” This suggests that online casinos, and those dealing with cryptocurrencies in particular, should expect to endure enhanced identity verification and risk-based monitoring under the proposed rule. Casinos would likely need to implement stronger onboarding and source-of-funds reviews, more rigorous transaction monitoring, and clear escalation procedures for suspicious crypto activity.

While the 2026 proposal is described in secondary reporting and hasn't been confirmed by FinCEN, the regulator’s current guidance already supports enhanced risk-based KYC for crypto-related casino activity. As a result, online casinos should take this moment to review their AML programs and be prepared to adapt as the regulatory framework evolves.