Drug dealers in Britain use electronic gambling machines across the nation to launder money that they earned through illegal drug sales.
According to a report in the Guardian, the dealers insert drug money into the fixed-odds betting terminals (FOBTs) and then cash out to make it seem that drug money is gambling winnings.
The dealers are aware that gamble at least 40 percent of the money wagered in order to avoid being flagged for suspicious activities. One dealer stated that he simply puts £20 on black £20 on red, and £2 on 0, and plays until he passes the 40 percent level.
By feeding the terminals with drug money and then cashing out, the drug dealers are able to have a receipt that shows how much money was cashed out Thus, if they are ever stopped by police, the drug dealers can point to the receipt to show why they are holding so much cash.
There are 33,345 fixed-0dds betting terminals across the United Kingdom. Each one is able to process a £100 bet every 20 seconds. One machine can gross about £900 a week.
Source: Randeep Ramesh, “The gambling machines helping drug dealers ‘turn dirty money clean’,” Guardian, November 8 2013