LeoVegas has been charged with a lack of compliance in Denmark because of diligence issues and anti-money laundering (AML) requirements.
The Danish Gambling Authority, Spillemyndigheden, carried out a detailed examination of some 20 LeoVegas players in the country. The regulator found that the operator failed to fulfill the AML requirements in five of the 20 cases studied. The violations mainly occurred between 2017 and 2019.
At that time, the regulator alleges that LeoVegas, a Nasdaq quoted company and registered casino operator, permitted five of its clients to deposit DKK 1.2 million ($186,960) to DKK 1.6 million ($249,280). However, the casino failed to validate the legality of the source of the money.
Additionally, the regular found that LeoVegas did not adhere to reporting obligations established by the regulator. This is a commitment the casino has to abide by, informing the AML Secretariat in cases of this type of rule breaking.
Despite the findings, LeoVegas was not heavily penalized by the regulator, and had its current license renewed for five years.
Spillemyndigheden Takes Issue with LeoVegas
Four of the five cases analyzed were considered by the Spillemyndigheden to have not been reported within the necessary time frames. The Secretariat was informed of these cases 10 to 22 months after the fact.
Danish authorities have further issues with LeoVegas, which it accuses of having made its first report after Spillemyndigheden detected the four cases it reviewed.
Although this represents a serious fault and can lead to action taken against the casino operator, in this case, the allegations against LeoVegas have not provoked severe action. The regulator wasn’t harder on the operator because it informed the authorities that it had instituted “new business procedures” as of January 1 of last year.
As of that date, the casino has changed its notification system. The authorities will be notified immediately in the future if there is a suspicion of possible money laundering on its premises.
LeoVegas Extends Danish License
Spillemyndigheden has renewed LeoVegas’ operations license for another five years despite the findings. The license will expire in 2026.
LeoVegas has been active in the Danish market ever since 2016. The operator will continue offering online casino and sportsbook betting brands for the regulated market, which underwent a reformation of its rules and regulations in 2018.
Our Danish launch was one of our most successful, and the fact that we are now one of the largest operators in the market is testament to that,” Gustaf Hagman, the CEO of LeoVegas, said.
The extension is considered to be “vital” to LeoVegas’ growth plans in Europe. This group has licenses to operate in the UK, Italy, Sweden, Ireland, Spain and Schleswig-Holstein in Germany, as well as Malta.
New regulations in Germany have continued affecting performance in the market negatively, although LeoVegas has achieved double-digit growth in important markets. Online casino activities by the group are growing in Sweden, where it had record-reaching revenue figures for the second quarter of the year.
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