Danish Gaming Authority Reprimands LeoVegas

Spillemyndigheden, the Danish Gaming Authority, has admonished operator LeoVegas for not carrying out good enough customer verification checks.

At the same time, it was revealed that the site Spillehallen.dk also got in trouble with the authority a year ago for not having a good enough anti-money laundering policy.

Spillemyndigheden’s reprimand of LeoVegas came after the operator informed the authority that it carried out an internal investigation that found a problem with its customer verification processes. The error meant that temporary accounts could be made permanent without the player having to complete verification checks between June 2019 and May of this year. The problem was then corrected to ensure that the same mistake could not happen again.

During that time, temporary accounts were verified with just NemID, a login that is used by banks and other services. According to Spillemyndigheden, this means that the identity verification was inadequate as NemID can only be used if a player is considered low risk after undergoing a risk assessment.

Spillemyndigheden said, “In all other cases, use of NemID cannot stand alone and must thus be supplemented by another control source or other mitigating measures.”

As a result, LeoVegas was in violation of Chapter 3 of the Money Laundering Act. However, Spillemyndigheden did not say if any sanctions would be imposed on the operator.

The site Spillehallen.dk was reprimanded in December 2019, but the ruling by Spillemyndigheden was only published at the end of November. According to Spillemyndigheden, until 17 December 2019, the site failed to prepare a risk assessment about money laundering as required by the Money Laundering Act.

The regulator requested that Spillehallen.dk submit all its materials relating to compliance with the Act in September 2019. The materials were duly submitted but found to be inadequate. The site informed Spillemyndigheden that it was set to revise its policies in November and subsequently submitted new policies on 17 December, which fulfilled the legal requirements.

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