TSG, Betsson, and Snabbare Failed to Monitor User Deposits Adequately

TSG, a Flutter subsidiary, received the highest penalty of SEK 7 million ($730,117). Key findings of the regulator’s investigation include that the operator failed to apply enhanced due diligence measures properly for customers with unusually high deposits.

Spelinspektionen discovered that TSG had set internal threshold alerts of $20,000 for a single deposit and $40,000 in net deposits within a year to trigger an investigation into the source of the funds.

The regulator found the limits to be too high, allowing potentially risky activity to go undetected. It also criticized TSG’s documentation collection process.

Betsson received a fine of SEK 6.5 million ($677,966) for failing to implement proper due diligence measures and inadequate transaction monitoring. A Spelinspektionen investigation into 10 high-depositing customer accounts discovered that only two were compliant with regulations.

One customer was found to have made 163 deposits over a period of several months, totaling SEK 491,950. That customer had a net annual income of SEK 310,000. Still, the user was deemed to have a low to medium risk by Betsson’s system.

The regulator also fined Snabbare SEK 5.5 million ($573,663). Its investigation found that the operator accepted deposits that exceeded customers’ income.

Spelinspektionen determined that Snabbare’s customer knowledge is insufficient and that the operator’s delayed actions increased the risk of money laundering exploitation.

Spelinspektionen’s Continued AML Enforcement

The latest crackdown on Betsson, Snabbare, and TSG, highlight Spelinspektionen’s strict approach to monitoring AML protocols, including customer due diligence, transaction monitoring, and source-of-funds verification.

Just a month prior, the regulator fined Spooniker, a subsidiary of the Kindred Group, SEK 10 million ($1.1 million) for a failure in AML compliance. That included inadequate due diligence measures.

Similar AML shortcomings led to a SEK 12 million ($1.3 million) fine for Videoslots in April. Identical to the TSG case, an investigation of 12 user accounts found numerous breaches of the Swedish Gambling Act.

The April fine came less than six months after Spelinspektionen fined Videoslots SEK 4 million ($417,014) for similar AML failures. The fine was originally SEK 9 million, but the courts reduced it to SEK 4 million.

Other notable penalties for AML breaches include:

• Svenska Spel: SEK 100 million ($10.4 million) in 2024 (Svenska Spel won an appeal recently)
• TSG: SEK 7 million ($729,774) in 2023
• Betsson: SEK 5 million ($521,267) in 2022

Betsson Pulls Out of Holland Gaming Technology Acquisition

Other significant news for the Swedish-based Betsson Group is its announcement of the termination of the agreement to acquire Holland Gaming Technology and Holland Power Gaming in the Netherlands.

Betsson announced the deal in February 2024, pending approval by the Dutch Gambling Authority. The company stated that, since the regulator has not issued a decision by the agreed-upon long-stop date, it has decided to halt the acquisition process. Instead, Betsson will focus on other opportunities.

The agreed-upon purchase price was €27.5 million ($31.4 million). With the termination of the agreement, the sellers will return the sum to Betsson, minus a break fee of €800,000 ($911,900).

The post Swedish Gambling Authority Fines Betsson, TSG, and Snabbare for AML Failures appeared first on CasinoBeats.

While the news was expected, the ruling sealed the fate of the Casino Cosmopol in Stockholm, the last of the four previously state-run casinos operated by the former state-run monopoly Svenska Spel.

The casino’s closure mirrors the nation’s other casinos in Sundsvall, Gothenburg, and Malmo, which have all already closed their doors, leaving just under 240 employees at the solitary remaining venue in Stockholm.

Svenska Spel, which historically held a monopoly on the Scandinavian country’s land-based casino gaming, has since expressed its reluctant support for the decision. Ola Enquist, CEO of Casino Cosmopol, declared: “We share the Government’s assessment and have been prepared for the Riksdag’s decision.”

The government’s foreclosure announcement was ultimately driven by declining visitor numbers and profitability after Casino Cosmopol generated SEK165 million ($16.3 million) in 2024, a 65% drop from the previous year.

In contrast to Sweden’s land-based casino’s problems, Svenska Spel’s Tur lottery arm secured more than SEK5.14 billion ($510 million) in the same year. In what marks an undeniable shift in consumer behavior towards a preference for iGaming, the closure of in-person casinos will inevitably fuel online growth as digital channel shift continues. 

Concerns About Illegal Gambling Rise

Despite the Stockholm-based casino remaining open “until further notice,” liquidation talks are underway.

Reflecting upon the news, Enquist added, “Nevertheless, it is, of course, emotionally tough because it means that an era will end when the casino in Stockholm eventually closes.”

Although the government is having to react to the sizable shift in its citizen’s gambling habits, the decision has incited scrutiny from Sweden’s gambling regulator, Spelinspektionen, which fears the Casino Cosmopol’s closure will lead to a surge in illegal gambling. However, as things stand, the regulator has yet to respond to Riksdag’s decision in an official capacity.

The announcement also led the Swedish Police Authority to raise concerns by suggesting additional funding to monitor and control unauthorized gambling activity.

No New Land-Based Casino Licenses in Sweden

In effect, from 1 January 2026, there will no longer be physical casino premises in Sweden, and new operators will not be able to obtain a casino license.

Furthermore, the Riksdag tabled proposal also stated that the anticipated update of the country’s Act on Penalties for Money Laundering Offences on 1 July 2025 would give the Swedish Gambling Authority greater access to customer and business gambling data.

Ultimately, while the decision is unpopular amongst some casino-going Swedes, the closure of the Casino Cosmopol marks a cultural and economic turning point for Sweden’s gaming scene. For now, casino goers can still enjoy in-person table games and roulette, but eventually, they may have to migrate to live-dealer online casino venues to enjoy the pastimes of old.

The post Sweden to Close All Land-Based Casinos by 2026 in Gambling Overhaul appeared first on CasinoBeats.