Flutter’s PokerStars unit fined in Sweden over anti-money laundering failures

Sweden’s gambling regulator has fined TSG Interactive PLC, the operator of PokerStars under Flutter Entertainment, SEK 7 million ($734,000) for failing to comply with anti-money laundering (AML) requirements. The penalty follows an investigation by Spelinspektionen into how the company handled high-risk customers during 2023.

The Swedish Gambling Authority stated that TSG failed to obtain sufficient information about the source of funds for nine out of ten sampled customers, most of whom were young individuals depositing unusually large sums of money. The regulator noted that TSG either delayed or neglected to conduct adequate customer due diligence in a timely manner. Documentation was missing entirely for the tenth customer.

According to Spelinspektionen: “Nine of the ten customers who were included in the Swedish Gambling Authority’s sample during the period under review made deposits without TSG taking adequate and sufficient customer due diligence measures at all or sufficiently promptly.”

The agency found that many of the transactions were inconsistent with the financial behavior typically expected from individuals in the customers’ age group. TSG’s internal thresholds for triggering risk checks were set at $20,000 for single transactions and $40,000 for total net deposits, levels that the regulator argued were too high to flag potentially suspicious activity early.

Despite the company’s claims that its real-time transaction monitoring and risk management systems were robust, Spelinspektionen determined that the operator's procedures were inadequate. In some instances, even when customers were flagged as high-risk, TSG allowed them to continue gambling without promptly collecting the necessary documentation.

The regulator also rejected TSG’s defense that deposits made from customer winnings negated the need for further verification. Spelinspektionen emphasized that the origin of all funds must be traceable, regardless of their source.

The findings led the authority to conclude that the deficiencies were both serious and systemic, and that TSG’s AML controls did not meet the standards required under Swedish law. The fine, although calculated based on the legal framework in effect before recent amendments allowing for higher penalties, was deemed appropriate by the authority.

TSG Interactive operates under a Swedish license for online gambling and betting, valid through 2028. The company is a subsidiary of Flutter Entertainment, a global gaming group with a presence in multiple regulated markets.

In recent months, Spelinspektionen has issued fines totaling SEK 19 million ($2 million) against various operators as part of its efforts to uphold consumer protections and ensure market integrity. Flutter and PokerStars have not publicly commented on the ruling.