The Swedish online gambling association Branschföreningen för Onlinespel (BOS) has raised concerns regarding the proposed methodology for calculating anti-money laundering (AML) fines, as a government consultation on implementing new EU AML regulations concludes today, October 30.
In July, the Ministry of Finance released a memorandum outlining how Sweden should conform its laws to the European Union's AML package, which will become effective across member states by July 10, 2027. This memorandum invited BOS and other stakeholders to share their perspectives.
While BOS has generally supported the proposed measures, it criticized the notion that fines for operators should be based on the total revenue of their entire corporate group. Instead, the association asserted that only the revenue generated in Sweden should factor into any sanctions imposed. They emphasized that utilizing group-wide financials poses an unacceptable risk of imposing double penalties, which could violate both Swedish and EU law.
BOS contended that fines should be calculated based on gross gaming revenue (GGR)—the money remaining after winnings are distributed—arguing that winnings represent funds owned by players, not the operators. They highlighted the typical scenario where for every SEK100 wagered, approximately SEK95 is returned to players, leaving operators with SEK5. BOS advocated that this SEK5 should serve as the basis for any fines, comparing it to banking practices where penalties are assessed based on a bank’s turnover rather than the total funds held in customer accounts.
Gustaf Hoffstedt, the secretary general of BOS, remarked, "While we welcome the proposed EU anti-money laundering package as a significant advance in the battle against money laundering, we believe adjustments are necessary—especially regarding administrative fines—to ensure fairness and avoid double punishment, thereby fostering legal certainty."
This argument for basing fines on GGR is not new for BOS; the Swedish courts have previously endorsed this principle. In a landmark ruling in 2023, Sweden's Supreme Administrative Court determined that penalties under the Gambling Act should be calculated based on GGR rather than total revenue, stemming from a case involving Genesis Global, which was fined SEK4 million for not properly connecting to Sweden’s national self-exclusion register, Spelpaus. Before this ruling, the regulatory authority, Spelinspektionen, had calculated fines based on total stakes.
The discussion around AML penalties is ongoing. In July, Sweden's Administrative Court in Linköping upheld an AML penalty of SEK6.5 million against Betsson Nordic, SEK5.5 million against Snabbare, and SEK10 million against Spooniker.
As for the EU legislative framework, the European Commission first introduced these reforms in 2021, calling for the establishment of a new EU Anti-Money Laundering Authority, with the complete package being adopted in 2024. In response to these developments, the European Gaming and Betting Association announced it would revise its own AML guidelines to align with the new regulations.
