Source of funds refers to understanding and, where necessary, evidencing where the money a customer is using to gamble originates. It is a key part of anti-money-laundering controls and increasingly of affordability and player-protection work.
The purpose is twofold: to help ensure that gambling is not being funded by the proceeds of crime, and to check that a customer’s spending is consistent with their known circumstances. Operators may request information when activity reaches a level or pattern that prompts closer scrutiny.
Evidence can take several forms. Operators commonly accept documents such as payslips, bank statements, savings records, or paperwork relating to an inheritance or asset sale, depending on the situation and the explanation given.
For example, if a customer’s deposits increase sharply and significantly exceed what their profile would suggest, the operator may pause the account and ask for documentation showing the money comes from a legitimate, affordable source before allowing play to continue.
A common point of confusion is the difference between source of funds and source of wealth. Source of funds concerns the specific money being used for a transaction or activity, while source of wealth concerns how a person’s overall assets were accumulated; both may be relevant in higher-risk cases.
The circumstances that trigger checks, the evidence considered acceptable, and any monetary thresholds vary considerably between jurisdictions and regulators. Operators apply these checks according to the rules and risk expectations of their specific markets.