Swedish Gambling Regulator Issues Fines Over AML Failures and Unlicensed Activity
Sweden’s gambling regulator has issued significant fines to several licensed operators, including Betsson, Snabbare and The Stars Group, citing serious shortcomings in anti-money laundering (AML) controls. The enforcement drive comes alongside actions against charities, political groups, and gaming software suppliers operating outside of regulatory bounds.
AML Breaches Trigger Penalties for Major Operators
Spelinspektionen has penalised three well-known operators for failures in customer due diligence and transaction monitoring. TSG Interactive, owned by Flutter, received the highest fine of SEK 7 million (€642,260) for neglecting to escalate several high-value customer transactions. In multiple cases, individual net deposits exceeded SEK 424,514 over a year, yet enhanced due diligence and source of funds investigations were either delayed or absent.
The regulator criticised the operator’s failure to assess the associated money laundering risks effectively, citing a lack of timely and adequate control mechanisms.
Betsson Nordic, another prominent name in Sweden’s regulated market, was fined SEK 6.5 million (€596,400) following an investigation launched in May 2024. Spelinspektionen reviewed transactions of 10 customers from the top 50 depositors aged 18 to 29 in 2023. Only two accounts were found compliant.
In one notable case, a customer deposited SEK 491,950 between September and December 2023, far exceeding their reported annual income of SEK 310,000. Despite this, Betsson classified the risk level as low to medium, citing previous withdrawals as justification. The regulator deemed this response inadequate, describing the operator’s approach as “serious and systematic” non-compliance.
Snabbare was also penalised, receiving a fine of SEK 5.5 million. The company allowed customers to deposit sums beyond their known income levels, while also displaying delayed risk responses and weak verification procedures.
Wider Enforcement Targets Political and Charity Lotteries
The AML-related fines follow other recent enforcement actions. Just last week, Spelinspektionen took aim at several organisations involved in public benefit lotteries.
These included the Swedish Breast Cancer Association and the Swedish Prostate Cancer Association, both involved in the marketing of Datumlotteriet, as well as the Swedish Social Democratic Party and affiliated groups promoting Kombilotteriet.
The regulator cited aggressive sales techniques and irregularities in promotional practices as key concerns, reinforcing its commitment to cleaning up all corners of the gambling sector.
Court Upholds Fine for Unlicensed Software Provision
In a separate development, the Administrative Court backed Spelinspektionen’s decision to sanction Hacksaw Studios AB. The regulator had fined and warned the gaming software provider in May 2024 for distributing content to two unlicensed operators.
The legal framework requiring gaming software suppliers to hold a local Swedish licence came into force on July 1, 2023. It applies to any party involved in producing, installing or modifying software used for online gambling. The aim is to enhance regulatory oversight and steer players away from unlicensed platforms.