Swedish Gambling Authority Strikes Hard with SEK 19 Million in Fines Over AML Failures

In a significant escalation of its regulatory campaign, Sweden’s gambling watchdog has imposed nearly SEK 19 million in fines against three major online gambling operators for serious breaches of anti-money laundering (AML) obligations. This assertive enforcement action, conducted by the Swedish Gambling Authority (Spelinspektionen), underscores the country’s increasing intolerance for inadequate compliance frameworks in the gambling sector, particularly as online platforms continue to draw large volumes of transactions and increasingly attract criminal misuse.

Following a series of in-depth investigations into AML shortcomings, Spelinspektionen has penalized Betsson Nordic Ltd, Snabbare Ltd, and TSG Interactive—owned by Flutter Entertainment—over critical and persistent failures in customer due diligence (CDD), transaction monitoring, and the verification of source of funds. The regulator’s actions reflect growing concerns about how some operators are still lagging behind in addressing money laundering risks despite heightened legal expectations under Swedish and EU AML laws.

Betsson Nordic Ltd was fined SEK 6.5 million after investigators uncovered systemic compliance deficiencies during a review launched in May 2024. Focusing on high-deposit players between the ages of 18 and 29, Spelinspektionen requested transaction data and customer profiles for a sample group of ten individuals. Shockingly, only two of the ten cases met acceptable standards, with the remaining eight marked by failures that violated both the Swedish Gambling Act (2018:1138) and the national anti-money laundering legislation (2017:630). One alarming example included a player depositing SEK 491,950 over three months—despite having an annual income of only SEK 310,000. Betsson justified these deposits based on the player’s prior withdrawals, an explanation the regulator flatly rejected. As Spelinspektionen bluntly stated, “the deficiencies are both serious and systematic.” The company was consequently issued both a financial penalty and an official warning.

TSG Interactive, which operates under the broader Flutter umbrella, received the highest fine of SEK 7 million. The authority’s review found that several customers were allowed to deposit more than SEK 424,514 in a single year without triggering enhanced due diligence procedures—despite these thresholds demanding additional scrutiny under Swedish and European Union AML rules. Spelinspektionen highlighted that TSG had not implemented timely or adequate EDD, constituting a direct breach of both national gambling laws and the AML directives binding on all EU member states. The regulator stressed that such regulatory lapses “could facilitate money laundering or criminal proceeds flowing through gambling accounts,” citing the operator’s poor handling of customer due diligence in its decision.

Snabbare Ltd was not spared either. It was hit with a SEK 5.5 million fine and a formal warning for allowing customers to deposit funds far beyond their declared income levels without appropriate inquiries or follow-up. The regulator found that Snabbare’s internal systems and risk assessment practices were inadequate, concluding that “customer knowledge was insufficient and late interventions increased the risk of money laundering abuse.” Investigators underscored the importance of real-time and proactive transaction monitoring, especially when a customer’s gambling activity appears inconsistent with their financial profile.

All three cases stemmed from regulatory reviews of 2023 transactions, illustrating not only delayed interventions but also a broader trend of underestimating the risks posed by high-spending customers. Under Sweden’s legislative framework—primarily the Gambling Act and the Act on Measures against Money Laundering and Terrorist Financing—licensed operators are subject to strict AML obligations, including risk-based CDD, timely identification and escalation of suspicious transactions, and independent verification of customer finances when red flags are present. These requirements mirror standards laid out in the EU’s Fourth and Fifth AML Directives.

According to Spelinspektionen, “Operators must take their obligations seriously and implement measures that are effective in practice, not just on paper.” This statement reinforces the regulator’s position that superficial policies, inconsistent oversight, or profit-driven risk tolerance will not shield companies from enforcement. The authority’s risk-based approach to supervision has empowered it to identify major compliance gaps and issue penalties when standards are not met.

These enforcement actions matter deeply because the gambling sector is especially vulnerable to financial crime. The Financial Action Task Force (FATF) and the European Commission have repeatedly warned about the unique money laundering risks present in online gaming platforms, which allow for quick deposits, fast withdrawals, and a high volume of financial activity that can be difficult to track without rigorous controls. Criminal actors frequently exploit these characteristics to obscure the origins of illicit funds. In Sweden, the regulator has grown increasingly concerned that some operators prioritize growth over safeguarding, allowing suspicious behavior to go unchecked.

In response to the sanctions, each of the penalized operators has committed to remedial action. Betsson has pledged to conduct a complete overhaul of its customer due diligence practices and to invest in better transaction monitoring tools. TSG Interactive has vowed to improve staff training and enhance its risk assessment systems. Snabbare has publicly acknowledged its compliance shortcomings and promised to strengthen its internal procedures for verifying customer financial backgrounds and escalating unusual activity. The industry association BOS (Branschföreningen för Onlinespel) has also stepped in, calling for more cooperation between firms and regulators to boost the overall quality of AML controls in Sweden.

These enforcement efforts are part of a larger pattern of intensified scrutiny. Earlier in 2025, Spelinspektionen penalized additional operators, including Spooniker Ltd (Kindred Group) and Videoslots Ltd, for AML and consumer protection violations. Political lotteries and charity-run games were also fined for failures in contractor oversight and improper advertising. Together, these actions illustrate a decisive shift in the regulatory environment, one where reputational and financial risks for non-compliance are growing exponentially.

At a broader level, Sweden’s clampdown is in step with the evolving regulatory landscape across the EU. The introduction of the Sixth Anti-Money Laundering Directive and the anticipated launch of the EU’s Anti-Money Laundering Authority (AMLA) have raised the bar for compliance across the bloc. Gambling firms operating within regulated markets are now expected to implement advanced transaction surveillance, robust customer profiling, and regular internal audits to remain compliant. Crucially, for high-risk or high-value customers, operators must conduct comprehensive source-of-funds and source-of-wealth assessments and maintain detailed documentation of findings.

The Spelinspektionen fines issued to Betsson, TSG Interactive, and Snabbare have sent a powerful message across the sector: robust AML controls are non-negotiable. With nearly SEK 19 million in financial penalties levied in a single enforcement round, Sweden has reaffirmed its stance as a tough jurisdiction for operators that fall short on compliance. While the affected companies work to rebuild their AML frameworks, they—and others in the industry—must now contend with a regulator that has made clear its willingness to act decisively and publicly.

If anything, this moment may prove a catalyst for stronger compliance culture across Europe’s gambling industry. With more sophisticated AML threats on the horizon and tighter regulatory expectations becoming the norm, only those firms willing to make meaningful, sustained investments in compliance infrastructure will avoid future scrutiny.

By fLEXI tEAM