ATG Faces Significant Fine After Swedish Appeal Court Upholds AML Breach
ATG Penalized Following Appeal Court Support of AML Infringements
Swedish horse racing betting company AB Trav och Galopp (ATG) has been ordered to pay a fine of SEK 3 million (approximately $316,626) after Sweden’s Administrative Court of Appeal overturned a previous decision that had cleared the company. This reversal reinstates the Swedish Gambling Authority’s (Spelinspektionen) 2022 ruling while reducing the originally proposed penalty from SEK 6 million to SEK 3 million.
Appeal Court Finds ATG Failed in Due Diligence Over Large Unverified Deposits
The court determined that ATG breached Sweden’s Money Laundering Act by neglecting adequate customer due diligence and risk assessments. Its monitoring of players was deemed insufficient, enabling several customers to deposit large sums without timely or proper verification of their funds’ origins.
The regulator’s investigation, spanning 2019 to 2021, identified significant shortcomings in ATG’s handling of client information and anti-money laundering (AML) processes. Among the scrutinized clients was one who deposited over SEK 50 million (around $5 million), and ATG failed to confirm the legitimacy of these funds.
Authorities criticized ATG’s passive stance on monitoring gambling behavior and noted that required enhanced checks were delayed and inconsistently applied. Despite warning signs from substantial or frequent deposits, ATG allowed continued gambling activity without sufficient intervention.
Court Reduces Fine but Issues Formal Warning Amid AML Failures
ATG contested the ruling, attributing the compliance failures to accidental errors and procedural gaps rather than intentional neglect. The company emphasized that it has since improved its compliance framework by adopting automated controls, enhancing income verification processes, and establishing a dedicated team for comprehensive reviews.
While the court acknowledged the gravity of the violations, it considered them limited to a small group of customers, resulting in halving the initial financial penalty. Along with the reduced fine, ATG received an official warning from regulators.
This case underscores Sweden’s stringent regulatory oversight over its gambling sector, imposing strict, risk-based obligations on operators to prevent money laundering and terrorist financing. It serves as a stern reminder that licensed gambling businesses must rigorously adhere to national AML laws.
With reported gaming revenues of SEK 2.6 billion ($274 million) in the first half of 2025, ATG is also preparing for expansion. The company plans to enter Finland’s anticipated open gambling market by 2027.
