Betsson Nordic Ltd has been issued a warning and fined SEK6.5 million ($682,272) for inadequacies in its anti-money laundering (AML) controls in Sweden. Supervision by the Swedish Gambling Authority, Spelinspektionen, started on May 2, 2024, with a focus on Betsson’s 2023 transactions and activities. The regulator closely examined the top 50 customers aged between 18 and 29 based on total deposits, specifically reviewing 10 customers.
During the assessment, customer cards and transaction histories were evaluated, revealing significant shortcomings in all but two instances. Notably, one customer deposited SEK491,950 across 163 transactions from September 19 to December 30, 2023, despite only having a net annual income of SEK310,000. Betsson rated this customer’s risk level as low to medium, justifying the numerous deposits by referencing previous winnings withdrawals.
Spelinspektionen highlighted these findings as both serious and systemic. The SEK6.5 million fine given to Betsson was deemed appropriate and proportional to the extent of the breaches identified.
### Snabbare and Flutter’s TSG also fined for AML issues
Simultaneously, Snabbare Ltd and The Stars Group (TSG) Interactive, both subsidiaries of Flutter Entertainment, faced penalties for their AML deficiencies in Sweden. TSG Interactive was hit with a SEK7 million fine while Snabbare received a SEK5.5 million penalty.
TSG allowed multiple customers to exceed net deposits of SEK424,514 within a year, a threshold that normally necessitates enhanced due diligence and source-of-funds inquiries. The regulatory body criticized TSG for insufficient customer due diligence and for delays in implementing necessary enhanced checks, leading to inadequate risk assessment related to money laundering.
Moreover, Snabbare was reprimanded for accepting deposits surpassing customers’ annual incomes, indicating insufficient customer knowledge and delayed reactions, thereby increasing the risk of money laundering.
Spelinspektionen described the AML failures of all three operators as “serious and systematic,” resulting in collective fines totaling SEK19 million.
### Busy period for Spelinspektionen
Furthermore, Spelinspektionen recently imposed SEK3 million in fines on various charity and political organizations that operate lotteries, citing failures in overseeing contractors and for marketing infractions. Among those fined were the Swedish Social Democratic Workers’ Party, the Swedish Social Democratic Youth League, and the Swedish Social Democratic Women’s League.
In early May, Kindred’s subsidiary Spooniker was fined SEK10 million for AML breaches, and in April, Videoslots faced a SEK12 million penalty due to its inability to curb excessive gambling.
Spelinspektionen’s regulatory activities are set to intensify through 2025, reflecting ongoing challenges in the Swedish gambling sector.