As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.
Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.
So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?
Yes, it is possible. But we saw here a thread, when someone bet more than $1.000.000 with the odd less than 1.01 and lost it. There are no guarantee of winning in gambling, so some moment you can lose even with such odds.
And the casino can KYC such gamblers. Most time it becomes a problem for launderers.