Administrative Court in Sweden Overturns $550K Fine against ATG

Spelinspektionen, the Swedish Gaming Authority, announced Monday that a fine it imposed against the horseracing and betting operator, AB Trav & Galopp (ATG), has been annulled by the Administrative Court in Linköping. The fine was imposed by the gambling watchdog back in November 2022 and it came along with a warning over anti-money laundering failures. At the time, Spelinspektionen said that it uncovered violations of the Money Laundering Act, which resulted in the aforementioned warning, as well as a fine of SEK 6 million ($546,520).

In light of the fine and warning, ATG decided to appeal the regulator’s decision. This has put the question in front of the Administrative Court that reviewed the case and evidence presented further. Initially, the Authority said that out of 13 customers probed more intensively, deficiencies were uncovered in a total of eight cases.

Administrative Court Approves ATG’s Appeal

According to Spelinspektionen, regarding those 8 cases, the ATG “has not worked sufficiently proactively and risk-based to be able to ensure that customer knowledge is up-to-date and sufficient to be able to assess and counter the risk of the company being used for money laundering and terrorist financing,” thus resulting in the warning and penalty.

“However, the administrative court considers that it has not been shown that the violations are systematic or repeated,“

reads a statement released by the Administrative Court in Linköping

However, upon reviewing ATG’s appeal, the Administrative Court came to a different conclusion. Although Spelinspektionen said that the uncovered breaches were systematic as well as serious, the court disagreed. The court’s decision said that data did not indicate the breaches to be systematic or repeated. Moreover, it said that a financial penalty wouldn’t be an appropriate fit for the violations which weren’t so serious.

“The violations are not, either individually or collectively, so serious as to warrant a warning and a penalty fee. The Administrative Court has therefore decided to approve ATG’s appeal and annul the Gambling Inspectorate’s decision. The court agrees,“

added the Administrative Court

Hasse Lord Skarplöth, ATG’s CEO, praised the Administrative Court’s decision but at the same time said that it raises many questions regarding Spelinspektionen’s strategy. He urged the gambling regulator to support licensees rather than focus on implementing penalties. Finally, Skarplöth said that the Authority should focus on taking action against illegal gambling operators.

Recently, Spelinspektionen confirmed it expanded its management team by adding Kristina Geiger. She was appointed to the role of head of its department for operational support, effective from August 7, 2023.