Swedish authorities have intensified their campaign against money laundering risks in the gambling sector, issuing nearly SEK 19 million in fines to three major operators following extensive investigations in 2025. This robust enforcement drive marks a new phase in Sweden’s efforts to hold the industry accountable for lapses in compliance and player due diligence. The Swedish Gambling Authority (Spelinspektionen) has sent a strong signal to operators that superficial or inconsistent controls are no longer tolerated, especially as online gambling continues to attract high transaction volumes and increasingly sophisticated criminal typologies. The latest round of penalties highlights both the scale of ongoing vulnerabilities and the determination of regulators to protect Sweden’s financial system from abuse.

Sweeping AML Fines by the Swedish Gambling Authority

The Swedish Gambling Authority (Spelinspektionen) concluded several major investigations into anti-money laundering (AML) controls at prominent online gambling companies in 2025. Betsson Nordic Ltd, Snabbare Ltd, and The Stars Group (TSG) Interactive (owned by Flutter Entertainment) were each hit with hefty fines after the regulator found serious and systematic deficiencies in customer due diligence, source of funds verification, and ongoing monitoring practices.

The fines and warnings were announced after a lengthy review of customer transactions conducted throughout 2023. The investigations revealed a troubling pattern: all three companies failed to implement effective risk-based controls, allowing players to deposit and gamble sums far beyond their reported incomes without triggering enhanced due diligence (EDD) or proper source-of-funds investigations.

Betsson’s Compliance Gaps and the SEK 6.5 Million Penalty

Betsson Nordic Ltd, one of Sweden’s most established online betting brands, faced regulatory scrutiny over its transaction monitoring and customer verification processes. The regulator’s supervisory review began in May 2024, with a specific focus on players aged 18–29 who made the largest deposits.

Spelinspektionen requested detailed transaction records and customer profiles for a sample of 10 high-deposit players. Only two cases showed no deficiencies. In the remaining eight, the regulator identified clear breaches of the Swedish Gambling Act (2018:1138) and the Act on Measures against Money Laundering and Terrorist Financing (2017:630).

For example, one Betsson customer deposited SEK 491,950 (about $51,500) over three months—exceeding their annual income of SEK 310,000. Rather than triggering EDD or source-of-funds queries, Betsson staff treated previous withdrawals as justification for the customer’s deposits. The regulator found this rationale unacceptable, emphasizing that winnings should not automatically legitimize future transactions. According to Spelinspektionen, “the deficiencies are both serious and systematic.” The resulting sanction was a SEK 6.5 million fine and an official warning.

The Stars Group Penalized for Lax Due Diligence

TSG Interactive, part of Flutter Entertainment, was fined SEK 7 million after multiple customers were allowed to exceed net deposits of SEK 424,514 in a 12-month period. Under Swedish law and the EU’s Fourth and Fifth AML Directives, such large transactions require enhanced due diligence, including independent verification of the customer’s source of funds and wealth.

Spelinspektionen found that TSG failed to take adequate EDD measures in a timely manner, breaching requirements in both the Gambling Act and Sweden’s AML framework. The regulator specifically cited insufficient customer due diligence for audited cases, warning that lax controls could facilitate money laundering or criminal proceeds flowing through gambling accounts.

Snabbare’s Lapses in Customer Knowledge and Transaction Monitoring

Snabbare Ltd received a SEK 5.5 million penalty and an official warning. The investigation showed that the operator accepted customer deposits significantly above players’ annual incomes and delayed acting on red flags. The Swedish Gambling Authority concluded that Snabbare’s customer knowledge was insufficient and late interventions increased the risk of money laundering abuse.

Authorities highlighted that proactive transaction monitoring is vital to detect unusual gambling patterns, especially those inconsistent with a player’s financial profile. Under Swedish law, operators are required to continuously assess risk, perform due diligence, and escalate cases as appropriate. Snabbare’s shortcomings raised the risk that its platform could be misused by criminals.

Regulatory Standards: Swedish and EU AML Rules

Sweden’s gambling sector is tightly regulated under the Gambling Act and the Act on Measures against Money Laundering and Terrorist Financing. These laws set out strict obligations for operators, aligned with EU AML directives. Key requirements include:

• Risk-based customer due diligence (CDD) and ongoing monitoring
• Enhanced due diligence (EDD) for high-risk customers or large transactions
• Independent verification of the source of funds and the source of wealth
• Timely reporting of suspicious activities to the Swedish Financial Intelligence Unit (FIU)
• Internal controls and staff training on AML risks

Non-compliance can lead to significant fines, public warnings, and, in extreme cases, license revocation. The Swedish Gambling Authority uses risk-based supervision to identify and sanction firms that fail to meet these standards.

Why AML Failures in Gambling Matter

The gambling industry presents unique risks for money laundering and the movement of illicit funds. Online casinos and betting platforms, by nature, process high transaction volumes, offer rapid account funding and withdrawals, and serve customers from a wide range of financial backgrounds. Without robust controls, these features can be exploited by criminals seeking to clean proceeds of crime.

The Financial Action Task Force (FATF) and the European Commission have repeatedly flagged gambling as a sector of concern. National regulators, such as Spelinspektionen, are required to enforce rigorous standards to prevent their jurisdictions from being used for illicit finance.

In Sweden, regulatory reports suggest that some operators have prioritized business growth over strict compliance. Failure to monitor large or suspicious transactions, or to question funds inconsistent with a player’s profile, creates vulnerabilities that criminal groups can exploit.

Industry Response and Remediation Efforts

Following the fines, all three operators have pledged to strengthen their AML frameworks. Betsson announced a comprehensive review of its customer due diligence procedures and committed to investing in advanced transaction monitoring systems. TSG Interactive has likewise promised additional training for staff and improvements to its risk assessment tools. Snabbare issued a public statement acknowledging its deficiencies and outlined a remediation plan to enhance customer knowledge checks and reporting mechanisms.

Industry bodies such as the Swedish Trade Association for Online Gambling (BOS) have called for greater collaboration between operators and regulators to share best practices and improve compliance culture.

Broader Enforcement Landscape in Sweden

The latest actions against Betsson, TSG Interactive, and Snabbare are part of a broader trend in Sweden’s gambling regulation. Earlier in 2025, Spelinspektionen fined other operators, including Spooniker Ltd (a Kindred Group subsidiary) and Videoslots Ltd, for failing to meet AML and responsible gambling requirements. Lotteries run by political and charity organizations were also penalized for lapses in contractor oversight and marketing violations.

These enforcement actions underscore the regulator’s commitment to upholding the integrity of Sweden’s gambling market. The Swedish Gambling Authority has repeatedly stated its intention to step up supervision, ensure compliance with AML and consumer protection laws, and penalize repeat or egregious offenders.

International Implications and Lessons Learned

Sweden’s strict enforcement mirrors growing regulatory scrutiny across Europe and beyond. With the adoption of the EU’s Sixth Anti-Money Laundering Directive and the upcoming implementation of the European Union Anti-Money Laundering Authority (AMLA), the compliance bar is rising for all licensed operators.

Key takeaways for gambling firms operating in regulated markets:

• Proactive transaction monitoring and customer profiling are essential
• Operators must promptly escalate and investigate large or unusual transactions
• Documentation of the source of funds and wealth is not optional for high-risk cases
• Staff must be trained to recognize and act on AML red flags
• Failing to comply with national and EU AML laws now carries both financial and reputational consequences

According to Spelinspektionen’s public statement, “Operators must take their obligations seriously and implement measures that are effective in practice, not just on paper.”

Conclusion: Sweden’s AML Enforcement Raises the Stakes for Gambling Operators

The substantial fines against Betsson, TSG Interactive, and Snabbare mark a turning point in Sweden’s regulation of gambling and AML compliance. With nearly SEK 19 million in penalties levied in a single enforcement sweep, the Swedish Gambling Authority has made clear that it expects operators to prioritize robust, risk-based controls or face serious consequences.

Ongoing industry remediation and enhanced regulatory scrutiny are likely to drive lasting improvements in compliance culture. However, operators will need to remain vigilant, investing in staff training, transaction monitoring technology, and regular policy updates to keep pace with evolving threats and regulatory expectations.

Ultimately, the Swedish model illustrates how sustained, risk-based enforcement can protect the integrity of the gambling sector and reduce the risk of financial crime.

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Related Links

• Swedish Gambling Authority – Official Site
• Swedish Gambling Act (2018:1138) – Full Text
• Act on Measures against Money Laundering and Terrorist Financing (2017:630)
• European Commission – Anti-Money Laundering in the Gambling Sector
• FATF Guidance – Risk-Based Approach for Casinos

Other FinCrime Central News About Casinos Being Fined

• AUSTRAC Orders External Audits for Two Australian Casinos Over AML Gaps
• Tightened Casino AML Compliance for Cryptocurrency Transactions in 2025
• New Zealand Casino Faces Civil Action for AML Failures

Source: Focus Gaming News

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