The Swedish Gambling Authority, Spelinspektionen, revealed on Monday that a financial penalty it had levied on the horse racing and betting enterprise, AB Trav & Galopp (ATG), was overruled by the Administrative Court in Linköping. The punitive fine and an accompanying warning regarding infractions of anti-money laundering laws were originally set forth by the gambling regulator in November 2022. According to the watchdog, it discovered violations of the Money Laundering Act, leading to a stern warning and a hefty fine of SEK 6 million ($546,520).
In response to the imposed sanctions and admonishment, ATG chose to challenge the regulator’s judgement. Brining the matter to the Administrative Court’s attention, a thorough review of the case and presented evidence was carried out. Initially, the Authority had intensified its investigation into 13 customers with evidence of malpractice uncovered in eight instances.
ATG’s Appeal Receives Backing from Administrative Court
Based on these eight cases, ATG, said Spelinspektionen, “did not demonstrate an adequate level of proactivity and risk assessment to maintain current and comprehensive customer knowledge, a key factor to identify and prevent the risk of the company being exploited for money laundering and terrorist financing purposes.” This resulted in the instituted warning and financial penalty.
“However, the administrative court believes there is insufficient proof that these infringements were either systematic or recurrent,”
maintains an official statement from the Administrative Court in Linköping.
Yet, after examining ATG’s appeal, the Administrative Court reached a contradicting conclusion. Where Spelinspektionen suggested systematic and severe violations were discovered, the court took a different stance. The court’s verdict declared that the available data did not show any extensive or persistent breaches. Furthermore, they believed a financial penance was inappropriate for the non-grievous infractions.
“Notwithstanding individual or collective considerations, the violations are not of a severity that warrants a warning or the imposition of a penalty. Thus, the Administrative Court has approved ATG’s appeal and rescinded the Gambling Inspectorate’s decision. The court concurs.”
announced the Administrative Court.
ATG’s CEO, Hasse Lord Skarplöth, commended the decision by the Administrative Court yet also contended it raises numerous questions about the strategy employed by Spelinspektionen. He called upon the gambling regulator to concentrate more on backing licensees rather than imposing penalties. Wrapping up, Skarplöth stressed that the Authority should prioritise actions against unlawful gambling operations.
In the recent past, Spelinspektionen announced it has expanded its leadership team with the appointment of Kristina Geiger. Poised to head its operational support department, Geiger’s appointment will come into effect on August 7, 2023.
