Videoslots fine cut in half in Sweden!
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14 Dec 2024 •
Reading time: 3 minutes In Sweden, online gambling operator Videoslots has just received some news that, although mixed, offers partial relief. The fine imposed by the Swedish Gaming Authority (SGA) has been revised by the administrative court. Initially set at 9 million Swedish kronor (approximately €782,000), it has been reduced to 4 million kronor (approximately €347,000). But this readjustment does not mask the seriousness of the accusations against the company.
What were the alleged failings?
According to the SGA investigation, Videoslots seriously failed in its due diligence obligations towards its customers. For three years, the operator failed to effectively monitor the financial profiles of its 10 biggest players. In several cases, large deposits were accepted without verification of their origin and sometimes despite being inconsistent with customers’ declared income. These failures put Videoslots in direct violation of the Swedish Money Laundering Act.
Added to this were document retention issues. Indeed, the company failed to retain certain crucial documents, making it difficult to trace transactions and complicating the work of regulators. As a result, the risks of money laundering and terrorist financing were amplified.
Why was the fine reduced?
Despite the seriousness of the facts, the Administrative Court ruled that the evidence presented was not sufficient to classify these violations as systemic. This distinction was decisive in the decision to reduce the fine. However, the court maintained that the breaches were serious enough to warrant a significant financial penalty and an official warning.
In its verdict, the court also rejected Videoslots’ argument that the primary responsibility for preventing financial crimes lies with banks. This interpretation of the rules was deemed wrong, as operators play an equally crucial role in preventing abuse.
What changes has Videoslots made following the judgment?
Faced with these accusations and under pressure from regulators, Videoslots said it had implemented significant improvements to its risk management practices. In particular, the company has strengthened its procedures for verifying customer identity and monitoring their financial activities.
Sweden, like other European markets, imposes high standards to prevent money laundering and protect consumers. Swedish authorities will remain vigilant. The SGA has warned that any further violations could result in harsher penalties or even the revocation of the operator’s license. This clear message is part of a zero-tolerance policy for misconduct in the gambling sector.
Another fine reduced: The Netherlands case
Videoslots has also seen a significant fine reduction in another case. In the Netherlands, the Gaming Authority (Ksa) recently reduced an initial fine of €9.87 million to €975,000. The penalty related to the admission of Dutch players despite the lack of a license to operate in this market. After review by the advisory committee of objections, it was found that the turnover generated by Dutch players had been significantly overestimated.
Marloes Derks, spokesperson for the Ksa, stressed that this reduction does not diminish the importance of the Dutch rules, but reflects a better assessment of the facts. This case, like the one in Sweden, reminds gambling operators that rigorous compliance is essential to avoid serious consequences.