The Financial Action Task Force (FATF) has reported that online video games and gambling platforms are increasingly being misused by terrorists and extremists for spreading propaganda, recruiting individuals, and raising funds.
In its latest “Comprehensive Update on Terrorist Financing Risks”, released on 8 July 2025, the FATF noted that digital gaming ecosystems—ranging from multiplayer video games to online casinos—have become attractive tools for criminal networks and terrorist groups due to their lack of regulation, cross-border nature, and built-in monetisation features.
“Criminals can quickly launder large amounts of money through thousands of micro-transactions,” the report stated. Some terror groups are already using in-game purchases, virtual goods, and even casino chips to move funds and mask illicit cash flows.
“These transactions create serious enforcement challenges,”
– FATF
While most gaming platforms do not support high-value transactions, the report said that repeated low-value micro-transactions—such as the sale of game skins or tokens—can cumulatively amount to substantial sums. Over time, these systems have been used to finance extremist operations.
Calls mount for better enforcement
The Financial Action Task Force (FATF), which cites a variety of advanced strategies used to avoid detection and finance illegal activities, has expressed concern over the increasing abuse of online gaming platforms by terrorist organisations.
Among the most concerning developments is the exploitation of in-game communication tools, such as voice and text chats. FATF warned that these features are now being used to incite radicalisation and guide lone-actor attacks, offering relatively secure and unmonitored channels for covert coordination and financial discussions.
In its report, FATF also highlighted that in-game items—including digital weapons, avatars, and skins—can be transferred or gifted without a trace, creating significant challenges for law enforcement. “These transactions create serious enforcement challenges,” the agency said.
Some extremist groups have taken things a step further. Organisations like Hezbollah and certain Ethnically or Racially Motivated Terrorism (EoRMT) networks have reportedly developed their video games, encouraging users to simulate real-world attacks. These games act as both propaganda tools and revenue streams.
To support its findings, FATF cited notable examples. The Islamic State (ISIL), for instance, previously succeeded in converting gaming points into fiat currency. At the same time, Al-Shabaab allegedly used an online gambling platform registered in the Caribbean to funnel terrorist financing.
The transnational nature of these schemes underscores how casinos and gaming platforms are being exploited across borders, particularly in jurisdictions with weak regulatory oversight.
Mounting pressure puts Asia at risk
Asia is also vulnerable to these related trends. In Indonesia, the country’s financial intelligence unit, PPATK, reported in 2024 that terrorist-linked funds were traced to gaming and betting wallets used by local minors. Similarly, Philippine authorities raided several offshore gambling hubs last year as part of their POGO crackdown, where law enforcement found digital payment tools allegedly connected to organised crime and terror-linked groups.
Even in past, FATF has specifically flagged regions like Cambodia and Myanmar for weak controls over online gambling operations. Many of these platforms operate across borders, serving both local and international players, and are difficult to monitor.
The findings come amid growing calls for tighter regulation of the online gaming and gambling sectors. Experts warn that, without proper oversight, these platforms could become a major battleground in the global fight against terror financing.
