Betsson, Flutter & Snabbare Fined After Swedish AML Investigation

It has recently come to light that three prominent gambling operators, including Betsson and Flutter, have faced substantial penalties from the Swedish Gambling Authority (Spelinspektionen) due to failures in Anti-Money Laundering (AML) compliance, specifically regarding customer due diligence procedures.

### Flutter, Betsson, and Snabbare Penalized for AML Violations

The Swedish Gambling Authority has imposed a significant fine of SEK 13.5 million (approximately £1 million) on three notable gambling firms: TSG Interactive (a subsidiary of Flutter Entertainment), Betsson Nordics, and Snabbare Ltd.

Evidence from Spelinspektionen indicated that TSG Interactive had serious shortcomings in its transaction monitoring processes and customer verification measures. Specifically, the authority highlighted TSG’s inability to verify the legitimacy of customers’ income, raising red flags for potential money laundering and associated risks.

These concerns stem from investigations conducted in 2023 and were officially revealed following a more extensive probe in May 2024. Notably, new penalty frameworks came into effect in June 2024, aimed at deterring operators through fines calculated as a percentage of gross gambling revenue or turnover. However, since the infractions occurred prior to these regulatory changes, the penalties were assessed under previous guidelines, where AML breaches carry a maximum fine of €1 million, roughly SEK 10.5 million.

### Betsson Nordics Under Scrutiny

Similarly, Betsson Nordics faced scrutiny for lapses in customer due diligence, with investigations also taking place in May 2024. The authorities examined ten active customers from 2023 based on age and spending patterns. Alarmingly, customers aged 20-24 displayed deposits ranging from SEK 133,584 to SEK 273,699 within a six-month window.

Given that individuals in this age bracket typically lack such disposable income, Spelinspektionen flagged these accounts as high-risk, raising additional concerns about potential money laundering activities. Consequently, Betsson was levied with a SEK 6.5 million fine, reflecting its infractions before the recently enacted regulations.

### Snabbare Ltd: The Third Operator in Question

The final entity implicated in this compliance oversight was Snabbare Ltd, a subsidiary of the ComeOn Group that has been operational since 2017 under both Maltese and Swedish licenses. Like their counterparts, Snabbare Ltd was investigated for insufficient customer verification practices in 2023.

While they received a lesser fine of SEK 5.5 million, Snabbare has a history of violations; they previously faced a SEK 6.5 million sanction in 2021 for offering recurring bonuses to players, which is against Swedish regulations that only permit first-time bonuses.

### Understanding the Role of Spelinspektionen

Spelinspektionen, the Swedish Gambling Authority, plays a crucial role in regulating the gambling landscape within Sweden, overseeing online bookmakers, gaming portals offering free spins, and lottery providers. Equipped with the mandate to advise the government on all matters related to gambling, Spelinspektionen also issues permits for lotteries operating in the country.

### Conclusion

These recent penalties for Betsson, Flutter, and Snabbare emphasize the increasing scrutiny of gambling operators regarding compliance with AML regulations. As the landscape evolves, adhering to robust customer due diligence procedures will be paramount not only for regulatory compliance but also for maintaining the integrity and trustworthiness of the gambling industry.

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With over two decades of experience in betting and gambling journalism, Andy Newton is recognized as an authority in the field. He specializes in sports betting and industry news, particularly as a leading expert in horse racing insights.