Swedish Gambling Regulator Cracks Down with SEK 19 Million in AML Fines Amid Sector Scrutiny

Sweden’s gambling watchdog has escalated its efforts to combat money laundering risks in the online betting sector, imposing nearly SEK 19 million in fines on three major operators in 2025. The Swedish Gambling Authority, Spelinspektionen, has taken decisive action following exhaustive investigations, signaling a new era of strict enforcement and zero tolerance for inadequate compliance. The regulator’s latest penalties expose enduring weaknesses in transaction monitoring and customer due diligence, while underscoring the government’s commitment to shielding the financial system from illicit activity linked to gambling.

Spelinspektionen's enforcement sweep followed a series of in-depth investigations into Betsson Nordic Ltd, Snabbare Ltd, and TSG Interactive (a Flutter Entertainment subsidiary), uncovering what the regulator called “serious and systematic” failures in complying with Sweden’s anti-money laundering laws. The investigations focused on customer behavior throughout 2023 and revealed consistent failures to conduct adequate risk assessments, enforce enhanced due diligence (EDD), or verify sources of funds—particularly for high-volume players whose gambling activity far exceeded their reported incomes.

In Betsson Nordic Ltd’s case, the regulator initiated its review in May 2024, homing in on young players aged 18 to 29 with the largest deposit histories. After analyzing transactions and account data for ten high-value customers, Spelinspektionen found that only two showed compliance with legal requirements. One notable case involved a player who deposited SEK 491,950 over just three months—more than 50% higher than their annual reported income of SEK 310,000. Despite these red flags, Betsson failed to initiate EDD or investigate the source of funds. Instead, the company attempted to justify ongoing deposits by citing prior customer withdrawals. The regulator firmly rejected this rationale, declaring that “winnings should not automatically legitimize future transactions.” Spelinspektionen concluded that Betsson’s AML breaches violated both the Gambling Act (2018:1138) and the Act on Measures against Money Laundering and Terrorist Financing (2017:630), issuing a SEK 6.5 million fine along with a formal warning.

TSG Interactive, operating under the umbrella of Flutter Entertainment, was penalized SEK 7 million after permitting multiple customers to exceed SEK 424,514 in net deposits over a one-year period without triggering mandatory EDD. The company failed to verify sources of funds or investigate suspicious behavior in a timely manner, in violation of Sweden’s national AML framework and the broader requirements of the EU’s Fourth and Fifth Anti-Money Laundering Directives. Spelinspektionen emphasized the dangers of such negligence, warning that “lax controls could facilitate money laundering or criminal proceeds flowing through gambling accounts.”

Snabbare Ltd, another major online operator, incurred a SEK 5.5 million fine. The regulator's investigation found that the company permitted players to deposit sums that significantly exceeded their reported annual incomes, while taking too long to act on obvious risk indicators. The Authority found Snabbare's approach to customer knowledge deficient, noting that the operator failed to intervene early enough in potentially suspicious cases. Authorities reiterated that effective transaction monitoring is not optional, especially in a high-risk industry like gambling. “Late interventions increase the risk of money laundering abuse,” the regulator stated, adding that Snabbare’s conduct raised the likelihood that its platform could be used to conceal criminal funds.

Sweden’s AML rules, closely aligned with EU directives, require licensed gambling operators to implement a host of obligations. These include risk-based customer due diligence, timely EDD for large or unusual transactions, independent verification of both the source of funds and wealth, as well as prompt reporting of suspicious activities to the Swedish Financial Intelligence Unit. Internal control systems and ongoing AML training for staff are also mandatory. Non-compliance, as demonstrated in these cases, can lead not only to fines and warnings but also potential license revocation.

The gambling sector is widely recognized as a high-risk domain for money laundering. Online platforms facilitate rapid, high-volume transactions and often lack face-to-face customer interaction, making it easier for criminals to obscure illicit funds. The Financial Action Task Force (FATF) and European Commission have routinely flagged gambling as vulnerable to abuse, urging national regulators to impose rigorous safeguards. In Sweden, Spelinspektionen has repeatedly warned operators that prioritizing growth or customer convenience over legal obligations is unacceptable. Failure to investigate large or irregular deposits, especially those inconsistent with a player’s declared income, creates obvious channels for financial crime.

All three fined operators have since vowed to improve their AML compliance systems. Betsson announced a top-to-bottom review of its due diligence protocols and pledged investments in advanced transaction monitoring technology. TSG Interactive responded with a commitment to strengthen staff training and refine its risk assessment models. Snabbare, for its part, publicly acknowledged its shortcomings and laid out a remediation strategy, including enhanced customer knowledge checks and more responsive internal reporting. The Swedish Trade Association for Online Gambling (BOS) responded by calling for stronger collaboration between companies and regulators to raise industry standards.

These latest enforcement actions are part of a broader crackdown on AML failings across Sweden’s gambling landscape. Earlier in 2025, Spelinspektionen fined several other operators, including Videoslots Ltd and Spooniker Ltd (part of the Kindred Group), for breaches involving both money laundering and responsible gambling obligations. Lotteries associated with charities and political parties have also been penalized for failing to monitor contractor behavior or violating advertising rules.

The surge in regulatory action in Sweden aligns with wider European trends. The EU’s upcoming implementation of its Sixth Anti-Money Laundering Directive and the establishment of the European Anti-Money Laundering Authority (AMLA) are expected to raise compliance expectations even further. For gambling companies operating in regulated markets, key takeaways are clear: transaction monitoring must be proactive; large or irregular customer activity must be escalated immediately; and enhanced due diligence is mandatory—not optional—when risk thresholds are crossed.

Staff training, documentation, and internal systems must also evolve to meet rising standards. As Spelinspektionen plainly stated, “Operators must take their obligations seriously and implement measures that are effective in practice, not just on paper.”

The nearly SEK 19 million in fines levied against Betsson, TSG Interactive, and Snabbare represents a pivotal moment in Sweden’s regulatory posture toward the gambling sector. It signals not only a more aggressive supervisory approach but also a shift in expectations—away from procedural box-checking and toward demonstrable, real-world effectiveness in anti-money laundering controls. As the industry responds with reforms and the regulator maintains pressure, the Swedish model could well become a blueprint for AML enforcement across Europe.

By fLEXI tEAM