Sweden Cracks Down on Online Gambling with $2 Million in AML Fines Following Compliance Failures

In a sweeping enforcement action that underscores growing regulatory pressure on the gambling industry, Swedish authorities have imposed nearly SEK 19 million (approximately USD 2 million) in fines on three major operators for systemic failures in anti-money laundering (AML) compliance.

The Swedish Gambling Authority (Spelinspektionen) has sent an unambiguous message: the era of weak due diligence and superficial monitoring is over. As online gambling platforms continue to handle high volumes of transactions, Swedish regulators are intensifying their oversight to shield the financial system from abuse.

Major Penalties Handed Down to Online Gambling Firms

In 2025, Spelinspektionen wrapped up a series of investigations that targeted the AML frameworks of some of the country’s most prominent online gambling operators. Betsson Nordic Ltd, Snabbare Ltd, and TSG Interactive—part of global gaming giant Flutter Entertainment—were each penalized for allowing players to gamble funds that far exceeded their known financial means without triggering enhanced due diligence (EDD) or investigating the origins of the funds.

The regulator revealed that customer due diligence practices were either poorly applied or entirely absent in many cases, despite clear legal obligations under the Swedish Gambling Act (2018:1138) and the Act on Measures against Money Laundering and Terrorist Financing (2017:630). Spelinspektionen stated unequivocally, “Operators must take their obligations seriously and implement measures that are effective in practice, not just on paper.”

Betsson Hit with SEK 6.5 Million Fine for Inadequate Risk Controls

Betsson Nordic Ltd, a widely recognized name in Swedish online betting, was sanctioned with a SEK 6.5 million fine and a formal warning after a regulatory inspection launched in May 2024 uncovered systemic issues in transaction monitoring, particularly among younger, high-deposit players aged 18 to 29.

In a review of 10 customer files, only two were found to be in compliance. The rest exhibited serious shortcomings. One notable case involved a player who deposited SEK 491,950—nearly SEK 182,000 more than their stated annual income—over just three months. Despite the glaring red flag, Betsson did not initiate enhanced checks. Staff justified the continued acceptance of large deposits based on the customer’s prior winnings, a rationale Spelinspektionen firmly rejected. “The deficiencies are both serious and systematic,” the authority concluded.

TSG Interactive Penalized for Delayed and Insufficient EDD

Flutter-owned TSG Interactive was handed the largest fine of the trio, at SEK 7 million, for failing to enforce enhanced due diligence procedures when multiple customers exceeded SEK 424,514 in net deposits over a 12-month span. The regulator emphasized that this level of financial activity mandates rigorous scrutiny, including independently verified documentation of source of funds and wealth.

Spelinspektionen found that TSG did not perform EDD in a timely or effective manner, breaching both Swedish AML legislation and obligations under the EU’s Fourth and Fifth AML Directives. The regulator pointed to a lack of meaningful customer verification and cautioned that such lapses “could facilitate money laundering or criminal proceeds flowing through gambling accounts.”

Snabbare Fined for Failing to Monitor Red Flags and Financial Mismatches

Snabbare Ltd received a SEK 5.5 million fine and an official warning after investigations revealed that the company failed to detect or act on clear warning signs. Customers were permitted to make deposits well above their annual income, while transaction patterns inconsistent with customer profiles went largely unchallenged.

According to Spelinspektionen, Snabbare’s insufficient customer knowledge and delayed response to suspicious activity significantly heightened money laundering risks. The regulator stressed that, “Proactive transaction monitoring is vital to detect unusual gambling patterns, especially those inconsistent with a player’s financial profile.”

AML Framework and Compliance Obligations in Sweden

Swedish gambling operators must adhere to the dual requirements of the Gambling Act and AML legislation, which reflect broader EU directives. These laws mandate comprehensive due diligence, including:

• Risk-based assessment of customer profiles

• Enhanced due diligence for high-risk or high-value transactions

• Verification of source of funds and wealth for large deposits

• Timely suspicious activity reporting to the Financial Intelligence Unit

• Robust internal AML controls and staff training

The penalties imposed underscore the consequences of non-compliance. Regulators can impose fines, public warnings, or even revoke licenses in severe cases. Sweden uses a risk-based supervisory approach to ensure that the most critical vulnerabilities are addressed.

Why the Gambling Sector Faces Heightened AML Scrutiny

Online gambling remains a high-risk sector for financial crime. Its digital nature allows for swift deposits, rapid withdrawals, and high transaction frequency—conditions ripe for abuse if oversight is lacking. The Financial Action Task Force (FATF) and the European Commission have repeatedly warned about the sector’s vulnerability.

The Swedish Gambling Authority echoed these concerns, noting that some operators have allowed business growth to outpace compliance readiness. Weak or delayed transaction monitoring can create loopholes for illicit funds to flow undetected.

Operators Promise Remediation Following Fines

All three sanctioned operators have acknowledged the regulator’s findings and pledged to improve their compliance frameworks. Betsson announced a comprehensive internal review of its customer due diligence protocols and plans to invest in upgraded transaction monitoring systems. TSG Interactive promised staff training enhancements and more robust risk assessment tools, while Snabbare published a remediation plan aimed at improving customer knowledge procedures and reporting channels.

The Swedish Trade Association for Online Gambling (BOS) has also weighed in, encouraging greater collaboration between industry and regulators to foster a stronger compliance culture.

A Broader Pattern of Enforcement in 2025

This enforcement round is part of a larger regulatory push in Sweden. Earlier in the year, Spelinspektionen sanctioned several other operators, including Spooniker Ltd (a Kindred Group brand) and Videoslots Ltd, for both AML failures and breaches of responsible gambling requirements. Even political and charitable lotteries were not spared, facing penalties for poor contractor oversight and marketing violations.

These actions reveal a consistent regulatory posture: firms that fail to meet their obligations will be penalized, and repeat offenders may face more serious consequences.

Europe’s Compliance Landscape: A Rising Bar

Sweden’s regulatory crackdown reflects a pan-European trend toward stricter AML enforcement. With the implementation of the EU’s Sixth AML Directive and the creation of the new Anti-Money Laundering Authority (AMLA), the compliance bar is rising rapidly.

Spelinspektionen’s latest statement reinforces this shift: “Operators must take their obligations seriously and implement measures that are effective in practice, not just on paper.”

Conclusion: A Turning Point for Gambling Compliance

The SEK 19 million in fines issued to Betsson, TSG Interactive, and Snabbare marks a critical inflection point in Swedish gambling regulation. Regulators are no longer satisfied with theoretical compliance—operators must demonstrate real, risk-based controls or face severe penalties.

With ongoing remediation efforts and growing regulatory expectations, the pressure is on for gambling firms to strengthen their AML programs. This includes investment in staff training, advanced monitoring technologies, and clear escalation procedures for suspicious activity.

Sweden’s example may soon become the European norm, as regulators across the continent demand greater accountability and transparency in the fight against financial crime.

By fLEXI tEAM