Flutter-Owned TSG Fined in Sweden for AML Failures
Flutter Entertainment's Swedish-facing subsidiary, TSG Interactive PLC, which operates under the PokerStars brand, has been fined SEK7 million (US$734,000) by the Swedish Gambling Authority (SGA) for serious breaches of anti-money laundering (AML) regulations. The SGA determined that the operator failed to carry out sufficient due diligence on a selection of high-risk customers, thereby violating Sweden's money laundering prevention laws.
LISTEN TO THIS ARTICLE:The SGA's investigation focused on ten specific customers flagged for exhibiting high-risk behaviors, particularly involving substantial deposits. Of these ten, nine were found to have made repeated deposits without TSG conducting timely or adequate customer due diligence measures.
Related: Flutter Entertainment Posts Q1 Net Loss Despite Rising RevenuesThe SGA emphasized that these due diligence failures persisted throughout the period under review. It added that the actions taken by the company did not meet the minimum regulatory standards required in such cases.
Documentation was insufficient or entirely absent for one of the ten customers, which hindered the authority's ability to complete a proper assessment. Nevertheless, among the customers examined, several were described as relatively young individuals who had made considerable financial deposits into their gaming accounts. The SGA highlighted this as a critical red flag that required prompt and thorough investigation by the operator, which did not occur.
TSG Interactive only requested information about these customers' annual incomes after regulatory supervision had commenced, revealing a reactive rather than proactive compliance approach. The SGA criticized this failure, stating that TSG's actions were inconsistent with the risk-based methodology that underpins Sweden's anti-money laundering regulations.
The regulator also concluded that the operator's AML shortcomings were both significant and systemic, raising concerns about the company's internal risk management processes.
More Business News
Fine Could Have Been Higher
Due to the lack of available data on the financial gains TSG may have acquired from these regulatory violations, the SGA decided to impose a sanction that did not exceed €1 million. The fine was deemed by the regulator as proportionate to the seriousness and scope of the violations committed by the operator. In its assessment, the SGA stated that the deficiencies in TSG's AML protocols represented severe regulatory breaches that demanded a financial penalty aligned with their gravity.
The enforcement action against TSG Interactive PLC forms part of a broader compliance initiative by the SGA, which also penalized two other operators for similar infractions. Betsson Nordic Ltd was fined SEK6.5 million (US$680,977) for conducting inadequate due diligence on high-risk players aged between 18 and 29. The regulator found that Betsson had not sufficiently scrutinized transactions from this demographic, which typically warrants enhanced monitoring due to increased vulnerability and risk.
Snabbare Ltd, operating under the brand faster.com, was also subject to regulatory action. It received a SEK5.5 million (US$576,211) fine for relying excessively on automated systems to monitor player activity. The SGA reported that Snabbare did not adequately assess or justify large deposits made by young users, signaling a potential compliance gap in the operator's approach to human oversight and risk evaluation.
The SGA has indicated that it will continue to monitor and enforce AML standards, particularly among operators serving younger and potentially more vulnerable segments of the population.
RELATED TOPICS: Business
Latest News
Most Read
PAGCOR Board Members Submit Courtesy Resignations Following Presidential Directive
May 30, 2025Must Read
Interviews
Sweepstakes Casinos: Thriving in an Ever-Changing Industry – Interview with Attorney Stephen C. Piepgrass
Feb 17, 2025
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Flutter-Owned TSG Fined in Sweden for AML Failures