Unibet targeted by Danish gaming regulator for violations


Posted on: Dec 13, 2021, 7:28 a.m.

Last update on: December 13, 2021, 12:36 p.m.

Danish gaming regulators continue to assert their commitment to ensuring compliance with laws and policies. Shortly after calling an online operator for breaking the rules, Unibet became the last target.

A man draped in the Danish flag stands in front of a crowd. In the country, those who enjoy iGaming activities will be more closely watched, as operators continue to be targeted by regulators. (Image: Getty Images)

Unibet, one of the many brands in the Kindred group, has reportedly failed to adhere to anti-money laundering (AML) regulations in Denmark.

The video game and sportsbook operator apparently knew that a particular customer could be a high-risk person. However, he did not take the necessary steps to verify his status.

The anonymous individual deposited around 1.4 million DKK ($ 212,520) into his account from December 2016 to 2018. For some, that would not be a problem. To this individual, it seemed like more than he could afford.

Expenses greater than earnings

Unibet apparently knew there was a problem with the bet because in 2015 company officials reported his account. At that time, the person was not active with Unibet.

The operator left a note in his account stating that he should be watched if he were to reappear. It did, but Unibet took no action, according to the Danish Gambling Authority.

It wasn’t until December 2018 that Unibet finally asked the user to prove they could afford to spend big. When the “proof” was provided, it showed that he was spending more than he was earning.

Yet Unibet, which has been praised elsewhere for its responsible gaming initiatives, did not intervene. It then allowed him to deposit 1.8 million Danish kroner (US $ 273,250) until April 2020, before the operator closed his account.

Not enough due diligence

As a result, Unibet was charged with violating due diligence regulations and AML protocols. Besides failing to act sooner, he never informed the Money Laundering Secretariat (MLS) of the issues, as required.

As Unibet has not yet notified the Money Laundering Secretariat, the violation still exists and therefore Unibet has been ordered to correct the situation by making a report ”, declares the Danish Gambling Authority.

Unibet must now fulfill its due diligence and AML obligations and submit the appropriate reports to MLS. He has two weeks to return the information if he wants to avoid further headaches.

Unibet neither the first nor the last

Most countries are cracking down on gambling entities that do not play by the rules more severely. Denmark is no exception.

Regulators recently called LeoVegas for ignoring due diligence and AML rules. However, unlike other countries, Denmark is not so trigger sensitive when it comes to imposing large fines. Often, operators receive a warning or are authorized to take corrective action during a first violation.

The Danish iGaming market has collapsed recently. It did well last September before October saw a 25.6% drop in gross gaming revenue. iGaming and sports betting produced just DKK 525million ($ 78.8million), down 40million from the previous month. It was also 181 million ($ 27.46 million) lower than a year earlier.