Betsson Among Three Companies Penalized in Sweden for Anti-Money Laundering Failures

In a recent development in the iGaming industry, Betsson finds itself in hot water as one of three companies fined in Sweden for anti-money laundering (AML) failings. Spelinspektionen, the Swedish gambling regulator, issued Betsson Nordic Ltd a warning and a hefty fine of SEK6.5 million ($682,272) for deficiencies in its AML practices in Sweden.

The investigation by Spelinspektionen, which began in May 2024, focused on transactions and activities during 2023. The regulator scrutinized the activities of 10 selected customers, aged 18 to 29, based on their significant deposits. Shockingly, only two out of the ten cases were found to have no deficiencies. One alarming case uncovered a customer who made 163 deposits totaling SEK491,950 between September and December 2023, despite having a net annual income of only SEK310,000. Betsson justified these excessive deposits by pointing to the player’s previous withdrawal history, a practice deemed insufficient by the regulator.

Betsson was not alone in facing Spelinspektionen’s wrath. Snabbare Ltd and The Stars Group (TSG) Interactive, owned by Flutter Entertainment, were also fined and warned for AML failings in Sweden. TSG Interactive was fined SEK7 million, while Snabbare received a sanction fee of SEK5.5 million. These companies were found to have allowed customers to exceed net deposit limits without implementing necessary customer due diligence measures, a serious violation according to the regulator.

The total fines amounted to SEK19 million for the three operators, reflecting the seriousness and systematic nature of their AML deficiencies. This incident adds to Spelinspektionen’s busy period, with recent fines imposed on charity and political organizations for lottery-related violations. The regulator’s stringent enforcement actions highlight the importance of robust AML measures in the iGaming sector to prevent financial crimes and protect customers.