The introduction of new merchant codes to identify legal online wagers has spurred a handful of U.S. banks to reconsider the compliance risks of processing payments for the online gaming industry, according to sources.
One of the largest sportsbooks in Nevada knowingly aided a massive illegal gambling operation for more than a year and even took steps to weaken its anti-money laundering rules after being warned of its compliance shortcomings by IRS examiners, U.S. officials said Monday.