Betsson Faces Consequences as Spelinspektionen Intensifies Regulatory Efforts in 2025
Betsson Nordic Ltd has found itself under scrutiny this year, receiving a significant warning along with a fine of SEK6.5 million (approximately $682,272) due to shortcomings in its anti-money laundering (AML) measures in Sweden.
Spelinspektionen, the regulatory body overseeing gambling operations, began its examination of Betsson on May 2, 2024. This investigation particularly focused on activities from 2023, selecting ten customers from a pool of the top 50 aged 18 to 29 based on their total deposits.
During the review, the regulator requested detailed transaction records for these players. Alarmingly, only two of the cases were deemed compliant. One particularly concerning instance involved a customer who made 163 deposits totaling SEK491,950 between September 19 and December 30, 2023. Despite having an annual income of SEK310,000, the customer’s risk rating was assessed as low to medium.
Spelinspektionen criticized Betsson for justifying these deposits by referencing prior withdrawals, despite the clear discrepancies between customers’ income and their gambling activities.
In their statement, the authority articulated that the identified deficiencies were severe and indicative of systematic issues. "Taking into account the company’s financial standing, we believe the imposed sanction fee of SEK6.5 million is appropriate," the regulator concluded.
Other Operators Draw Fines for Similar Violations
Betsson was not alone in this predicament; two other operators, Snabbare Ltd and The Stars Group (TSG) Interactive, faced similar penalties for their own AML lapses. TSG, linked to Flutter Entertainment, was fined SEK7 million, while Snabbare garnered a sanction fee of SEK5.5 million.
TSG was flagged for permitting several customers to exceed net deposits of SEK424,514 over a year, thereby neglecting necessary enhanced due diligence protocols to verify the source of funds. “TSG has insufficiently executed customer due diligence, failing to assess risks linked to potential money laundering,” noted Spelinspektionen in their findings.
Snabbare was found guilty of permitting deposits that notably surpassed customers’ annual incomes and was criticized for lacking adequate customer knowledge. The authority highlighted that the company’s delayed responses increased the likelihood of it being exploited for laundering activities.
Spelinspektionen condemned the operational failures of all three companies as “serious and systematic,” leading to a cumulative fine of SEK19 million.
A Busy Phase for Regulatory Oversight
This is part of a broader trend where Spelinspektionen is intensifying its regulatory oversight. Recently, the authority imposed fines on various charity and political organizations for poor control over lottery operations and violations in marketing practices.
For instance, the Swedish Social Democratic Workers’ Party and its youth and women’s leagues faced a collective fine of SEK3 million for lapses in governance. Earlier in May, Spelinspektionen penalized Kindred’s subsidiary, Spooniker, with a SEK10 million fine for AML shortcomings, and in April, Videoslots was ordered to pay SEK12 million for neglecting excessive gambling issues.
As the landscape evolves, it’s clear that regulatory bodies are ramping up efforts to ensure compliance and safeguard the integrity of the gambling sector in Sweden.