Online gambling operator Mr Green has been fined SEK31.5 million (€3.1 million) by the Swedish Gaming Inspectorate (Spelinspektionen) for failing to implement sufficient anti-money laundering and problem gambling precautions.
The Swedish gambling regulator found that the company owned by William Hill/Caesars Entertainment had failed to establish the source of income of several customers who had made large deposits that should has been flagged as suspicious. The regulator stated that Mr Green also did not follow the protocols in place to establish whether or not new customers presented a risk for money laundering.
According to a statement released on the Spelinspektionen website, the regulator stated that:
“The shortcomings are considered serious and therefore the Inspectorate has issued two warnings along with fines. According to the Money Laundering Act, the maximum penalty amount for having breached compliance with the Act is €1 million. However, the Gaming Act allows a significantly larger amount in penalty fees, as it is calculated on the gaming company’s turnover.
The Money Laundering Act compels gaming companies to prevent their services and products from being used for money laundering or financing terrorism. Among other things, the gaming company must identify its customers and find out enough information to be able to assess and manage the risks associated with the customer.
Mr Green Ltd has failed in its work with customer knowledge and has not taken the necessary measures urgently enough to be able to assess the risk of their business being used for money laundering. This is serious and Mr Green Ltd therefore receives a warning and a penalty fee of SEK1.5 million (€146k).”
Regarding the fines and warning for failure to protect customers from the effects of problem gambling, the regulator stated:
“According to the Gambling Act, the requirement for a duty of care means that the licensee (operators) must offer its players sufficient protection from the harms of excessive gambling. This includes helping the player to reduce their gambling when there is reason to do so. To protect the player, the licensee should provide feedback on the player’s playing behaviour and apply restrictions and access restrictions to the players.
Mr Green Ltd has not taken sufficient measures to help customers reduce their gambling when there is reason to do so, which is serious. Mr Green Ltd therefore receives a warning and a penalty fee of SEK30 million (€2.9 million).”
The regulator also states that the operator’s actions will be monitored closely in the future and that any subsequent infractions could see further fines and/or a possible suspension of its license to operate in Sweden.