Betsson Nordic Ltd has been issued a warning and fined SEK6.5 million ($682,272) due to shortcomings in its Anti-Money Laundering (AML) practices in Sweden.
The Swedish Gambling Authority (Spelinspektionen) initiated its investigation into Betsson on May 2, 2024, examining transactions and activities throughout 2023. During this review, the authority focused on 10 customers from the top 50 aged between 18 to 29, based on their total deposits.
The investigation entailed a detailed review of customer cards and transaction histories for these selected individuals, revealing that only two cases were without issues. A significant finding was a customer who made 163 deposits between September 19 and December 30, 2023, which totaled SEK491,950, despite having an annual income of only SEK310,000. The risk level for this customer was inaccurately assessed as low to medium.
The authority condemned Betsson for rationalizing deposits that exceeded the customers’ incomes through references to previous betting winnings withdrawals. They stated, “The deficiencies are both serious and systematic. With this in consideration and taking into account the company’s financial position, it was decided that the sanction fee should be SEK6.5 million.”
“The sanction fee is deemed proportionate to the severity of the violation,” they added.
**Snabbare and Flutter’s TSG also penalized for AML shortcomings**
Additionally, Snabbare Ltd and The Stars Group (TSG) Interactive, a part of Flutter Entertainment, were also fined and warned for AML deficiencies in Sweden. TSG Interactive faced a SEK7 million fine, while Snabbare was penalized SEK5.5 million.
TSG allowed some customers to exceed net deposits totaling SEK424,514 over a 365-day period, which should have prompted more rigorous customer due diligence and investigations into the sources of these funds. “The customer due diligence regarding the audited customers was insufficient,” Spelinspektionen noted in their ruling. “TSG did not undertake adequate enhanced due diligence measures timely, failing to properly assess the risk of exposure to money laundering.”
Snabbare received criticism for accepting deposits significantly above its customers’ annual incomes, which delayed action and increased the risk of the operation being used for money laundering purposes.
Spelinspektionen described the failures of all three operators as “serious and systematic,” resulting in a total of SEK19 million in fines.
**Active period for Spelinspektionen**
Spelinspektionen has also recently penalized several charity and political organizations operating lotteries for not adequately monitoring contractors and for marketing violations. The fines included SEK3 million issued to the Swedish Social Democratic Workers’ Party, the Swedish Social Democratic Youth League, and the Swedish Social Democratic Women’s League.
In early May, a SEK10 million fine was imposed on Kindred’s subsidiary Spooniker for AML shortcomings, and in April, Videoslots was fined SEK12 million for failing to counter excessive gambling.
This busy year for Spelinspektionen continues to highlight the regulatory pressure and increased scrutiny facing Betsson and other gaming operators.