The Swedish Gambling Authority has sanctioned three gambling operators for anti-money laundering deficiencies as a fourth successfully appealed a large fine in a blow to the regulator.
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- Failure to comply with robust AML procedures remains key focus of regulator and vulnerability for operators
- Despite increasing enforcement action, the Swedish Gambling Authority suffered a blow in court as a $10.4 million fine against the state-owned gambling operator was thrown out
- Swedish gambling industry was worth $2.89 billion in 2024
In separate decisions, the regulator yesterday fined Betsson Nordic 6.5 million krona ($676,000), Snabbare 5.5 million krona ($573,000), and TSG Interactive, which operates PokerStars, 7 million krona ($729,000), finding the trio had failed to operate sufficient customer due diligence procedures.
The Swedish Gambling Authority made similar remarks across the three decisions, finding each operator had failed to verify source of funds for high-risk customers and had not adequately addressed known AML deficiencies.
While the process to calculate penalties changed in June 2024 to increase maximum fines, the alleged violations occurred before that date and are therefore unaffected, the regulator said.
“It is the Swedish Gambling Authority's duty, through supervision, to ensure that the companies holding a Swedish gambling licence comply with the laws applicable to the Swedish gambling market,” a spokesperson for the regulator told Lexology PRO.
The trio of announcements comes as the authority takes an increasingly firm approach to enforcement.
Separately, state-owned Svenska Spel Sport & Casino yesterday overturned a 100 million krona ($10.4 million) fine in the Administrative Court in Linköping – a ruling which could embolden the three operators to appeal the regulator’s decision.
The Swedish Gambling Authority had fined the state-owned outlet’s digital arm in March 2024, finding it had failed to prevent excessive gambling in breach of the Gambling Act of 2019.
In a statement on the ruling, Svenska Spel’s chief executive Fredrik Wastenson said the penalty had been “disproportionate” and called for legal clarity in interpreting the Gambling Act’s duty of care. The regulator can still appeal the court’s ruling, but a spokesperson said they could not comment on the court’s decision.
The Swedish Gambling Association, known as SPER, said the industry was worth 27.8 billion krona ($2.89 billion) in 2024. SPER was launched in 2002 by gambling operators to create industry standards to protect consumers.
A spokesperson for TSG Interactive told Lexology PRO: “We take all regulatory and compliance obligations in the jurisdictions where we operate extremely seriously and are committed to constantly evolving our frameworks and standards of compliance in line with best practice.”
Betsson Nordic was approached for comment.
Lexology PRO was unable to contact Snabbare.