The Danish Gambling Authority rebuked Bet365 after it failed to conduct checks on a suspicious customer. Spillemyndigheden’s attention was drawn to an incident where a young player deposited $27,243 over a year without question.
Bet365 Fails to Perform Checks on a Suspicious Customer
The Danish laws around gambling state that gambling operators must report any suspicious activity observed on their customers. But Bet365 failed to comply with this regulation when a young player deposited $27,243 in a year without undergoing the required customer checks.
Spillemyndigheden reprimanded Bet365 over these failures, stating that it should have conducted detailed background checks on the customer. This includes the source of the funds. And since Bet365 failed to do this, there was no information about the player.
Bet365 failed to comply with the set regulations, which are meant to determine whether the customer used the platform’s services to launder funds sourced from criminal activities. The Danish gambling Authority deemed Bet365 to have violated the customer due diligence regulations as well as breaching the country’s Money Laundering Act.
Bet365 Lucky to Escape With a Mere Warning
Even after reprimanding the reputable betting company, the Danish gambling watchdog didn’t prosecute Bet365. Instead, the company was let off the hook with a mere warning. The DGA said the establishment moved to rectify the situation after following the regulator’s recommendations.
One of these recommendations is the introduction of best practices for anti-money laundering processes. The regulator said that Hillside followed all recommendations and saw no need to proceed with further action.
While Denmark’s regulations may be tough, they seem to be quite effective. A report by the country’s gambling regulator showed that compliance checks enforced by gambling companies have resulted in over 250 new criminal cases within two years.
More KYC and AML Failings Reported Within the Region
Bet365 isn’t the only recent failure that captured the attention of regulators. In January 2022, Mr Green was on the spot for violating two regulations in the Money Laundering Act. The warnings originated from failed checks conducted by the iGaming operator after a young player deposited $45,000 into their account yet Mr Green had no idea whether the funds originated from criminal activities.
That was not the first run-in with the law. Mr Green was previously on the spot back in August 2021 after it was fined a whopping $3.6 million by the Swedish Gambling Authority. The regulator said the iGaming operator failed to comply with principles governing customer wellbeing.
Still, within Sweden, William Hill’s subsidiaries in the country had a run-in with the law after they were adjudged to have failed to file reports about their operations. The Swedish law requires gambling companies to file bi-yearly reports. Since this was a repeat offense, the local authorities fined Mr Green and Evoke Gaming Ltd a total of SEK1,450,000 in fines.