Swedish regulator increases scrutiny of lottery operator’s sales, credit, and ID practices as AML enforcement intensifies
Polarlotto Under Investigation for Telephone Sales and Player Verification
The Swedish Gambling Authority (Spelinspektionen) has initiated a supervisory review of Polarlotto, a lottery operator licensed to run games via three platforms: miljardlotteriet.se, polarlotto.com, and polarlotto.se. This investigation focuses on whether Polarlotto’s telephone-based sales methods comply with the Gambling Act’s Chapter 14, Sections 18 and 19, which regulate marketing and customer protection.
In addition to its telemarketing practices, the regulator will assess compliance with Sweden’s gambling credit ban, as well as evaluate how effectively Polarlotto is implementing player identification protocols, particularly in verifying individuals against the national self-exclusion register, Spelpaus.se. Any findings of non-compliance could lead to formal intervention, fines, or warnings.
Regulatory Focus: Anti-Money Laundering and Consumer Protection
This supervisory move comes during a period of heightened enforcement by Spelinspektionen, particularly around anti-money laundering (AML) and consumer risk management. In recent weeks, the regulator has imposed SEK 19 million ($2 million) in collective fines on operators including Betsson, Snabbare, and TSG Interactive. These penalties followed serious lapses in player monitoring and due diligence.
For example, Betsson allowed a 20-year-old to deposit over SEK 133,000 across 181 transactions in a single month, and later removed AML warning flags to “avoid disturbing the customer.” Another 23-year-old was permitted to deposit nearly SEK 272,000 in four months, with insufficient scrutiny over the source of funds.
Similarly, Spooniker, a Kindred Group subsidiary, was fined SEK 10 million in May for failing to conduct proper customer due diligence, again raising red flags related to money laundering and terrorism financing risks.
Growing Pressure on Sweden’s Gambling Industry
Spelinspektionen’s actions reflect its zero-tolerance approach toward weak internal controls and insufficient regulatory compliance. With Sweden’s re-regulated gambling market under increasing scrutiny, operators are expected to adopt robust risk-based frameworks, including stronger player affordability checks, enhanced source-of-funds verification, and adherence to marketing and credit restrictions.
Polarlotto’s case could serve as a litmus test for how strictly the regulator will enforce the evolving regulatory framework for telephone-based gambling sales, which are still common for lottery-style offerings.
Outlook: Tighter Oversight and Industry Adaptation
As Spelinspektionen ramps up enforcement, the industry must adapt quickly. Operators that fail to demonstrate proactive risk management and customer protection can expect steep penalties and public censure. The ongoing investigation into Polarlotto underscores a shift toward real-time compliance auditing and greater transparency, especially concerning self-exclusion enforcement and the prevention of problem gambling.
The regulator’s findings on Polarlotto will be published following the review’s conclusion and may set a precedent for how Sweden treats similar marketing and operational models in its tightly regulated gambling sector.
