The Swedish Gambling Authority (Spelinspektionen) has imposed a SEK 10 million ($1 million) fine on Kindred’s subsidiary, Spooniker, citing deficiencies in customer due diligence and anti-money laundering safeguards.
Regulatory Action Against Spooniker
Spelinspektionen’s investigation revealed shortcomings in Spooniker’s financial security measures, including gaps in preventing terrorist financing and monitoring high-risk transactions.
In response, Kindred acknowledged the compliance failures, stating that it has already begun implementing corrective measures. Despite this, the company is considering an appeal of the fine.
Strict Oversight by Spelinspektionen
Since the launch of Sweden’s re-regulated gambling market in January 2019, Spelinspektionen has maintained a firm stance on non-compliant operators, issuing numerous fines to enforce industry standards. However, some operators have criticized the framework, arguing that its regulations are unclear and open to interpretation.
Moving forward, Spooniker must:
- Enhance monitoring of high-risk customers
- Conduct more thorough risk assessments
- Strengthen oversight of customer spending and financial transactions
Spooniker’s History of Regulatory Fines
This isn’t the first enforcement action against Spooniker. In 2020, the company faced a SEK 100 million ($9.6 million) fine for offering unauthorized gambling products and illegal bonuses. Following an appeal, the Swedish court reduced the penalty to SEK 50 million ($4.8 million), acknowledging violations but adjusting the fine amount.
Kindred’s Efforts to Improve Compliance
In recent years, Kindred has taken steps to enhance its regulatory compliance, including:
- Strengthening anti-money laundering protocols
- Introducing new controls to identify at-risk gamblers
- Increasing risk assessments and suspicious transaction reporting
The Swedish regulator remains committed to holding operators accountable and ensuring a secure, transparent gambling market.
