Danish regulator raps LeoVegas over verification failings

The operator advised the Danish Gambling Authority that it had detected an error in its customer verification process.

Denmark.- The Danish national gaming regulator, Spillemyndigheden, has reprimanded online casino operator LeoVegas over customer verification failings.

The Swedish operator had advised the regulator that an error in its processes meant that for almost a year, from June 2019 to May 2020, the temporary accounts could be converted to permanent accounts without completing the required verification checks.

During this period, players were verified only using NemID, a national login used for banks and other services that all Danish citizens can receive. However, NemID is only permitted to be used when a risk assessment has evaluated a player as low risk.

The error was detected following an internal investigation and has since been corrected. 

Spillemyndigheden said the mistake meant that LeoVegas’s checks had been inadequate, placing the operator in breach of Chapter 3 of the Money Laundering Act. It has not outlined any specific sanctions for the operator.

The regulator has also revealed that it reprimanded Spillehallen.dk towards the end of last year for failing to carry out an adequate risk assessment on money laundering.

It has requested material from the operator in September 2019 and found it to be lacking. The operator revised its policy on December 17 to make it compliant with the Money Laundering Act.

LeoVegas is looking to raise money to fund expansion through further M&A activity.

In Q3, it saw growth hampered by Sweden’s temporary limits on online casino deposits.