PokerStars Operator Gets Penalty in Sweden for AML Slip-ups

TSG Interactive PLC, which runs the Swedish version of PokerStars from Malta, has gotten a formal warning and a SEK 7 million fine ($733,754) from Sweden’s gambling authority, Spelinspektionen. This punishment comes after an investigation showed major issues in the company’s operations to follow anti-money laundering (AML) rules.

Swedish Gambling Authority Criticizes TSG Interactive Over Inadequate Checks on High-Spending Customers

The Swedish Gambling Authority, Spelinspektionen, says TSG Interactive did not check well enough where a bunch of big-spending customers got their money. They looked at ten players between 18 and 29 who put in a lot of cash during 2023. The watchdog pointed out that the company was too slow and not thorough in making sure these transactions were legitimate.

The authority stressed that TSG had not gathered enough information in order to assess whether these customers’ behavior might pose a money laundering risk. The regulator found that many of these customers’ money moves did not line up with what you would expect from people their age, based on what the average person in Sweden earns.

What is more, regulators thought TSG’s internal risk limits were too high to catch and stop shady activity. These limits were set at $20,000 for single transactions and $40,000 for total net deposits. The regulator argued that by waiting for users to hit these high marks, the company missed earlier red flags.

Spelinspektionen Finds Widespread AML Failures at TSG Interactive

TSG claimed its real-time systems for watching transactions and assessing risk were good enough, but the investigation showed otherwise. It also came to light that in many cases, the company either delayed or did not do the extra checks it should have done. For instance, one customer was tagged as high-risk but allowed to keep gambling for weeks without turning in the required paperwork.

Spelinspektionen turned down the company’s claim that customer winnings could be enough to justify new deposits without more checks. The authority made it clear that even if money comes from previous winnings, companies still need to check and record where it is from.

The watchdog saw these failings as both major and widespread, leading them to decide that TSG’s methods did not meet Swedish AML law standards. The violations happened before recent law changes that would have allowed a bigger fine, but the authority still felt that SEK 7 million ($733,754) was a fair penalty.

TSG Interactive has a Swedish license to run commercial online gambling and betting operations until the close of 2028. The company is a part of the Flutter Group, a big international player in the online gaming scene.

Spelinspektionen recently issued fines to gambling operators totaling SEK 19 million ($2 million) for failing to meet anti-money laundering (AML) standards. Along with TSG, the regulator also fined Betsson Nordic Ltd and Snabbare Ltd, highlighting ongoing regulatory efforts to protect consumers and maintain market integrity.