Danish gaming regulator warns bet365 over due diligence failings

Spillemyndigheden found that bet365 had failed to conduct due diligence tests on a customer who deposited a sizeable sum.

Denmark.- The national gambling regulator Spillemyndigheden has warned bet365 for failing to complete due diligence checks on a young customer who deposited around DKK190,000 (€25,537) in their account over a year. The regulator said bet365 had insufficient knowledge of the player’s source of funds to be able to rule out criminal activity.

The regulator noted that the player’s age and the amount deposited warranted due diligence checks to obtain information on their income, but it carried out no investigation and made no notes about the player. The regulator said that constituted a breach of Sections 10.1, 11.1 and 25 of the Danish Money Laundering Act.

These sections of the act impose on operators a duty to list and to investigate. Spillemyndigheden is taking no further action in this case, observing that bet365 has brought in new procedures for due diligence procedures and investigation.

Earlier this month, Spillemyndigheden warned operators to remember that they must respect laws addressing customers subject to financial sanctions. 

Danish slots inspections led to 255 police reports in three years

Spillemyndigheden has reported that between 2019 and 2021, it made more than 4,000 inspections of slot machines which led to 255 police reports. Spillemyndigheden monitors around 23,000 land-based slot machines in Denmark in order to detect illegal activity. These are located at 983 gaming halls and 1,277 restaurants across the country. 

The regulator carried out 1,511 basic venue inspections in 2021, up from 683 in 2020, when activity was restricted due to Covid-19 lockdowns. In 2019, the regulator had completed 1,829 inspections. Over the three years, inspections led to 255 cases being reported to the police: 46 in 2021, 83 in 2020 and 126 in 2019. 

Denmark’s land-based gaming sector continues to show a recovery from the impact of the Covid-19 pandemic. In March, total gross gambling revenue was up almost 30 per cent year-on-year to DKK 525m (€70.6m).

According to figures from Spillemyndigheden, land-based gaming machines generated DKK 110m. Land-based casinos generated DKK 34m, the fourth-highest total on record and an increase from DKK 31m in February.