Betsson one of three companies fined in Sweden for AML failings

Betsson Nordic Ltd has been issued with a warning, as well as a fine of SEK6.5 million ($682,272), for deficiencies in its AML work in Sweden.

Spelinspektionen initiated supervision of Betsson on 2 May 2024, focusing largely on transactions and activities that happened during 2023, with the regulator selecting 10 customers to review based on a list of the 50 customers aged 18 to 29 who made the largest total deposits.

Spelinspektionen requested Betsson’s customer cards and transaction history for those 10 players, with just two of those cases found to have no deficiencies.

Of the other eight, one customer was found to have made 163 deposits between 19 September and 30 December 2023, amounting to SEK491,950. The customer had a net annual income of SEK310,000, yet the player’s risk level was only considered between low and medium.

According to the regulator, Betsson legitimised total deposits exceeding players’ incomes by referring to their previous withdrawals of winnings from betting.

“The Swedish Gambling Authority has stated above that the deficiencies are both serious and systematic,” Spelinspektionen said. “Against this background and the company’s financial position, the Swedish Gambling Authority assesses that the sanction fee should be set at SEK6.5 million.

“The Swedish Gambling Authority assesses that the sanction fee is proportionate to the seriousness of the violation.”

Snabbare and Flutter’s TSG also fined for AML mishaps

Alongside Betsson, Snabbare Ltd and The Stars Group (TSG) Interactive were also fined and warned by Spelinspektionen for AML failings in Sweden.

TSG Interactive, owned by Flutter Entertainment, has been fined SEK7 million, while Snabbare was issued a sanction fee of SEK5.5 million.

TSG was found to have allowed multiple customers to exceed net deposits of SEK424,514 across a 365-day period, which should have triggered enhanced customer due diligence measures and information on the source of funds.

“The Swedish Gambling Authority assesses that TSG’s customer due diligence regarding the audited customers has been insufficient,” Spelinspektionen’s ruling read. “TSG has not taken adequate enhanced customer due diligence measures at all or in time and has thus not been able to assess the risk of being exposed to money laundering.”

Snabbare, meanwhile, was criticised by the regulator for accepting deposit amounts above annual incomes, assessing the company’s customer knowledge to be insufficient and that its late action led to an increase in risk that Snabbare might be exploited for money laundering.

Spelinspektionen described the failings of all three operators as “serious and systematic”, leading to the SEK19 million total in fines.

Busy period for Spelinspektionen

Just last week, Spelinspektionen announced it had fined a number of charity and political organisations that operate lotteries for failing to control contractors, as well as marketing violations.

The regulator fined the Swedish Social Democratic Workers’ Party, the Swedish Social Democratic Youth League and the Swedish Social Democratic Women’s League SEK3 million.

In early May, Spelinspektionen also fined Kindred’s subsidiary Spooniker SEK10 million for AML failings, while Videoslots was ordered to pay a sanction fee of SEK12 million in April for failing to counteract excessive gambling.