With tremendous upsides for all players to be found in the emerging sportsbook industry, K2 Intelligence provides an expansive array of strategic and value-added services customized to address the accompanying risks. We can provide the oversight, verification, and monitoring tools needed to prove compliance with all laws and regulations. And we offer investigative, fraud detection, and forensic services to help casinos, sportsbook establishments, service providers and state agencies minimize the possibility of regulatory noncompliance and fraudulent activity.
K2 Intelligence’s expertise across a wide array of regulated industries—including sportsbook industry—coupled with our depth of investigative, cyber and physical security, and compliance experience, makes us exceptionally qualified to help our clients navigate the rapidly expanding sportsbook industry.
Sportsbook Establishments and Service Providers: Compliance and Oversight
With huge numbers of bettors wagering billions of dollars in bets, compliance with Anti-Money Laundering (AML) and Bank Secrecy Act (BSA)/Title 31 financial crimes prevention laws has become a major area of risk management for sportsbooks and service providers alike. Home-grown, “check the box” approaches to handling the financial aspects of sports wagering, vetting vendors and other third parties helping to facilitate sports-wagering services, and implementing programs that meet AML regulatory requirements are no longer enough.
K2 Intelligence has experience in the banking, insurance, cryptocurrency, sportsbook, and casino industries developing, maintaining, and testing compliance programs tailored to the risks posed by a specific profile of customers. K2 Intelligence has direct experience as a regulator-selected independent compliance monitor to a sports-wagering entity in Las Vegas, a multiyear engagement that includes a comprehensive array of services related to the sportsbook BSA/AML compliance program.
K2 Intelligence can also provide the technology and transaction monitoring tools needed to maximize the effectiveness of traditional AML compliance and KYC programs. With scenarios tailored to the sportsbook industry, our proprietary technology and AML/OFAC typologies can identify the industry’s unique risks and vulnerabilities. For clients utilizing off-the-shelf licensed tools, our team is often brought in to develop customized modifications to enhance efficiency within existing technologies. As part of those services, each client is assigned a dedicated support team that not only assists with training and issue identification but also provides ongoing resolution and implementation of robust compliance and monitoring programs.
K2 Intelligence offers additional KYC programs specific to the sportsbook industry, including the collection of information to develop gaming activity profiles of previously unknown customers, due diligence background checks to ensure gamblers have a legitimate source of funds, the tracking of individual play to identify suspicious betting patterns, geofencing and messenger betting prevention, patron identification, and ongoing education of employees regarding FinCEN rules, American Gaming Association (AGA) guidelines, and BSA/Title 31 financial crimes compliance requirements.
State Gaming Regulators: Safeguarding Investments
K2 Intelligence is well positioned to help state gaming commissions safeguard their investments in the sportsbook industry by ensuring compliance with rules and regulations across the industry and providing oversight and assurances consistent with state requirements. Our experts have a long track record advising gaming and lottery regulators on AML requirements, fraud prevention, money handling, and physical and cyber security. K2 Intelligence has extensive experience working with government agencies to assure compliance with relevant laws, regulations, and policies as an independent integrity monitor either appointed by a government agency or brought in by an agency to promote compliance.
K2 Intelligence also has experience helping government entities examine the suitability of licensees, contractors, suppliers, and consultants, ensuring vendors have histories free of unethical regulatory or contractual breaches and overseeing the government contracting process. In addition, we have conducted due diligence on entrepreneurs looking to enter the gaming industry on behalf of state gaming agencies, including examining controversies, verifying financial wherewithal, and understanding past business practices.
Areas of Expertise
We provide expertise in the following areas:
- Bank Secrecy Act (BSA)/Title 31 compliance implementation, audits, gap analysis, annual validations
- Bank Secrecy Act (BSA)/Title 31 risk assessments; policy, procedure, and program design and training
- Know Your Customer (KYC) technology implementation, policy and procedure implementation, customer due diligence OFAC program implementation
- Transaction monitoring, making existing licensed technology more efficient, or implementing proprietary software with scenarios tailored to the sportsbook industry
- Sustainability assessments on licenses, service providers, and other third parties
- Financial control assessments
- Physical and cyber security and data protection
- Contractor oversight
- Due diligence and vendor screening