The operator was investigated by the Swedish gambling regulator.
Sweden.- The Swedish gambling regulator Spelinspektionen has issued a SEK9m (€760,000) fine and a warning against Malta-based Videoslots for breaches of anti-money laundering (AML) and financing of terrorism laws. The regulator cited “serious and systematic” failings to adhere to customer knowledge requirements.
Spelinspektionen randomly selected ten of the operator’s biggest spending customers from between 2019 and 2021 and studied its actions. It found a failure to investigate discrepancies between income and transactions.
One of the customers deposited over SEK5m in the period despite having an income of SEK57,000 in 2018. The player was able to continue to make big deposits and withdraws for two years after the operator first identified a risk.
Videoslots said that the cases selected were not representative of the level of compliance that it aims to achieve. It also said that it reports suspicious activity to Sweden’s financial intelligence bodies. However, Spelinspektionen said that operators have their own responsibility to investigate and prevent suspicious activity. It said Videoslots violated several sections of the Money Laundering Act.
It recognised that the operator had made improvements but said that despite being cooperative, Videoslot had not “actively facilitated” the investigation. It said: “Videoslots’ work has not been sufficiently proactive and risk-based to be able to ensure that customer knowledge is up to date and sufficient to be able to assess and counter the risk of the company being used for money laundering and financing of terrorism.
“The Authority’s assessment is that Videoslots’ customer knowledge regarding all of the audited customers was insufficient. Videoslots would therefore not have maintained the business relationship or performed individual transactions regarding these customers.”
Propose new credit rules for gambling in Sweden
The online gambling trade association Branschföreningen för Onlinespel (BOS) has voiced support for proposals to tighten credit rules for the sector. The Ministry of Justice has proposed new rules to prevent gambling operators from promoting third-party sources of credit.
Under the Gambling Act, operators cannot directly offer credit to gamble, but some operators have promoted third-party credit providers. As well as banning this practice, the proposed reforms would also include the creation of a new credit and debt register called the Skri Register.