SBC News Voice of the Sports Betting Industry
Norway’s sovereign wealth fund plans to scrutinise ventures in the cryptocurrency and gambling sectors for potential money laundering risks, according to a report by Reuters.
The investigation will be led by the Council on Ethics, the ethical watchdog of the Government Pension Fund of Norway, and is set to take place in 2025. Reuters reported that it had reviewed a Council document confirming the initiative.
“The Council on Ethics in 2025 will take a closer look at companies involved in cryptocurrencies and gambling/casino, where there is a significant risk of money laundering,” stated the document cited by Reuters.
The fund holds investments in Coinbase, the world’s third-largest cryptocurrency exchange after Bybit and Binance, as well as Flutter Entertainment, the largest online betting operator globally, and MGM Resorts, a prominent U.S. casino operator.
Both the gambling and cryptocurrency industries are frequently associated with heightened risks of money laundering. The substantial flow of money—both physical and digital—through casino operations and online betting platforms often draws the attention of regulators.
Similarly, the cryptocurrency sector has faced repeated allegations of money laundering, exacerbated by the decentralised nature of digital currencies and the significant transaction volumes involved. Despite these concerns, the crypto sector has seen remarkable growth in value and participation, particularly in light of recent regulatory and political developments in the United States.
In Norway, 14% of men reportedly own cryptocurrency, according to data from EY. The country is also recognized as one of the most crypto-friendly nations, as ranked by Coincub, alongside other European countries like Germany and France.
Nonetheless, cryptocurrency and gambling remain key areas of focus for financial regulators and law enforcement agencies worldwide. Countries such as Australia and Malta—a major hub for both gambling and financial activities—have identified these sectors as common avenues for money laundering by criminal entities.
In 2019, the Norwegian government directed Kommunal Landspensjonskasse (KLP), Norway’s largest mutual pension provider, to end all investments in the gambling and fossil fuel sectors. Although private, the government intervened in KLP’s investments to align its $100 billion pension fund with plans for ethical divestment.
