Betsson, a major player in the iGaming industry, encounters significant regulatory hurdles this June, facing fines in Sweden and a failed expansion attempt in the Netherlands.
Key Takeaways:
- Betsson fined SEK 6.5 million by Swedish Gaming Authority for AML failures
- Company abandons plans to re-enter Dutch market, losing €800,000 in break fee
- Regulatory challenges highlight increasing scrutiny in the iGaming sector
Swedish Regulator Imposes Hefty Fine
The Swedish Gaming Authority, Spelinspektionen, has levied a SEK 6.5 million fine on Betsson Nordic, accompanied by a formal warning. The penalty stems from an investigation into the company’s anti-money laundering (AML) processes and due diligence procedures.
The regulator’s probe, initiated in May 2024, examined 10 randomly selected accounts from a pool of 50 high-depositing users aged 18 to 29. Eight of these accounts revealed violations, with one player making 181 deposits totaling SEK 133,584 in a single month while being classified as low-risk.
Spelinspektionen described the deficiencies as “serious and systematic.” The violations occurred before the 2024 Swedish Gambling Act Review, which removed the €1 million maximum cap for AML failures.
Other operators also faced similar penalties. Snabbare and TSG Interactive, the Flutter Entertainment-owned operator of PokerStars, received fines of SEK 5.5 million and SEK 7 million, respectively.
Dutch Market Re-entry Plans Abandoned
In a separate development, Betsson has terminated its plans to re-enter the Dutch market. The company’s February 2024 acquisition of Holland Gaming Technology Ltd and Holland Power Gaming B.V. has been called off due to delayed regulatory approval from the Kansspelautoriteit (KSA), the Dutch Gambling Authority.
This setback has cost Betsson €800,000 in a break fee, with the company recovering €26.7 million from the original €27.5 million purchase price. The Netherlands market, which generated €1.47 billion in gross gaming revenue last year, remains out of reach for Betsson for now.
Implications for the iGaming Industry
These regulatory challenges faced by Betsson underscore the increasing scrutiny and compliance demands in the iGaming sector. As authorities tighten regulations to combat money laundering and ensure responsible gambling, operators must adapt their processes to meet these evolving standards.
The situation also highlights the complexities of expanding into new markets, with regulatory approvals playing a crucial role in determining success. For Betsson and other iGaming companies, navigating these regulatory landscapes will be key to future growth and sustainability in the industry.
