BOS urges EU to base AML gambling fines on Swedish GGR, not group turnover

Swedish online gambling trade body warns proposed fine calculations could trigger double punishment and undermine proportionality.

The Swedish Trade Association for Online Gambling (BOS) has submitted its views to Sweden’s Ministry of Finance on the EU’s proposed anti-money laundering package, backing the initiative but challenging how administrative fines would be calculated for gambling operators.

BOS objects to the proposal that the total turnover of an entire gambling group should be used as the basis for administrative fines related to an operator’s activities in Sweden. The association says fines tied to Swedish compliance should be based on the operator’s turnover within Sweden, warning that using group-wide turnover creates “clear risks of double punishment” that would run counter to Swedish and EU law.

The trade body also argues that sanctions should be based on Gross Gaming Revenue (GGR) — funds remaining after winnings are paid to players — rather than stakes or broader turnover measures. BOS states that winnings are client funds and “do not belong to the gambling operators,” and therefore should not be used to calculate fines.

To illustrate, BOS says that for every 100 kronor wagered, typically 95 kronor is returned to customers as winnings while the operator retains 5 kronor. It argues that this remaining 5 kronor should be the basis for administrative fines, drawing a comparison to banks where fines are based on the bank’s own turnover rather than the total balance of customer deposits.

“BOS welcomes the proposed EU anti-money laundering package. It has the potential to become an important tool in the fight against money laundering. At the same time, a rethink is needed in some areas — particularly regarding administrative fines — to ensure proportionality, avoid double punishment, and promote legal certainty in general,” says Gustaf Hoffstedt, Secretary General of the Swedish Trade Association for Online Gambling.