Swedish gambling regulator fines big-name operators for AML failings
Spelinspektionen has handed out fines totalling €1.7m.
Sweden.- The Swedish gambling regulator Spelinspektionen has continued its flurry of enforcement activity with a trio of fines for anti-money laundering (AML) failings among licensed operators. It’s issued penalty fees and warnings to Betsson Nordic, Snabbare and Flutter’s The Stars Group (TSG Interactive).
The latter received the heftiest fine of SEK7m (€642,260) after the regulator found that multiple customers had exceeded net deposits of SEK424,514 within a 12-month period, which should have triggered enhanced due diligence and source of funds inquiries.
Spelinspektionen found that TSG had failed to apply adequate enhanced due diligence measures in a timely manner, hindering its ability to assess money laundering risks.”
As for Betsson Nordic, it was fined SEK6.5m (€596,400) in relation to breaches of AML rules in transactions that took place in 2023. The regulator began a monitoring investigation in May 2024 when it requested customer records and transaction histories involving 10 customers from among the 50 highest depositors aged between 18 and 29 in the previous year. Only two of the 10 customers’ cases were found to be free of deficiencies.
Among the remaining cases, one customer made 163 deposits totaling SEK491,950 between September 19 and December 30, 2023, more than their net annual income of SEK310,000. Despite that, the player’s risk level was assessed only as low to medium. Betsson justified this by citing previous withdrawals of winnings.
However, the regulator found this to be unacceptable and deemed the Stockholm-listed operator to have shown “serious and systematic” failings. As usual, the fine was calculated taking account of the company’s revenue.
Finally, Snabbare received a penalty of SEK5.5m. Again, the regulator cited cases of the operator accepting deposits that exceeded customers’ annual incomes. Spelinspektionen found inadequate customer verification processes and delayed actions that heightened the risk of money laundering.
The fines and warnings are the latest in a flurry of enforcement actions from the Swedish gambling regulator. Last week, it announced fines against charities and political groups over aggressive marketing and dubious sales practices related to public benefit lottery operations.
Spelinspektionen initiated supervisory cases against the Swedish Breast Cancer Association and the Swedish Prostate Cancer Association over Datumlotteriet sales and against the Swedish Social Democratic Party, the Swedish Social Democratic Youth Federation and the Swedish Social Democratic Women’s Federation in relation to Kombilotteriet.
In April, the Administrative Court found in favour of Spelinspektionen in its enforcement action against Hacksaw Studios AB. The regulator had issued the provider a warning and penalty in May 2024 for providing gaming software to two operators who lacked Swedish gaming licences.
The requirement for gaming software providers to hold a local licence was introduced into the Swedish Gambling Act on July 1 2023. The aim was to increase channelling and counteract illegal gambling. The requirement applies to all those who manufacture, provide, install and/or modify gaming software used in commercial online gambling.
