Sweden’s gambling authority, Spelinspektionen, has imposed a fine of SEK9,000,000 (€761,363/$809,460) on Videoslots Ltd for its failure to comply with anti-money laundering (AML) regulations. The investigation initiated by the regulator focused on the company’s AML protocols, particularly regarding the identification and verification of new and existing customers and their source of funds. The investigation also examined how Videoslots manages a customer’s risk profile through its videoslots.com website.
The investigation uncovered that Videoslots had not implemented the appropriate measures to acquire customer knowledge and accurately assess the risk of its services being exploited for money laundering and terrorist financing. Spelinspektionen determined that the deficiencies were severe enough to warrant both a formal warning and a financial penalty. The imposed fine falls just short of the maximum penalty of €1 million stipulated in Sweden’s Money Laundering Act.
This is the second fine Videoslots has received in 2023, as the UK Gambling Commission issued a regulatory settlement of £2 million (€2.3 million/$2.4 million) in July for social responsibility and AML failures. The violations included the absence of customer interactions, allowing a customer with an income of £60,000 (€70,100) to lose £98,000 (€114,500) within six months.
Meanwhile, Sweden’s gambling authority unveiled in its latest financial report that gambling operators generated SEK 6.7 billion (€562.8 million/ $602.8 million) in the second quarter of 2023, with the online gambling industry accounting for 62.4% of the total. Subsequently, the government proposed an increase in the current gambling tax rate from 18% to 22%, effective from July 1st, 2024. This tax hike is estimated to generate an additional SEK 540 million ($48.2 million/€45.3 million) annually.
Overall, Videoslots’ fines in 2023 now amount to almost €8 million, contributing significantly to the total fines of over €386.4 million imposed by Spelinspektionen this year.