The regulator says it took the action after LeoVegas was found to be in breach of certain customer due diligence routines during 2019 – the first year after the launch of the regulated Swedish gaming market. So far, the regulator has only reviewed LeoVegas’ 2019 routines. 

In response, LeoVegas has said it is continually developing its policies to ensure compliance, and that it had already updated those policies before the regulatory action. 

The company has stated it intends to appeal the regulator’s decision, so that a court can review the matter and give the industry clearer guidance on how regulations should be interpreted. 

LeoVegas, which operates 14 brands and licenses in eight different jurisdictions, has stressed it is subject to numerous audits and reviews by local supervisory authorities and external auditors each year, and that compliance is its top priority.

AYO.NEWS says:

Given the widespread confusion surrounding the specifics and nuances of regulatory requirements in the Swedish market since it launched at the start of 2019, we expect plenty more stories like this. Let’s hope the courts can help clarify matters. 

According to BOS, most of its members have now experienced unexpected account closures, and the abrupt termination of vital services, often without any explanation at all. 

Gustaf Hoffstedt, General Secretary of BOS, explained: “The banks fulfil an important task in any society and for every industry. The online gambling industry is not an exception, quite the opposite with our industry’s transaction intensity.

“With this in mind it concerns me that a large number of banks are withdrawing their services to Swedish licensed gambling operators, and apparently without any individual due diligence process. The decision seems to have been taken based only on the industry’s general reputation rather than any AML concern or similar from the bank regarding the individual client.”

In its communication with Finansinspektionen, BOS stressed how critical access to comprehensive banking services is for day-to-day operations, including being essential for enabling licensed operators to compete with unlicensed offshore operators, and to effectively prevent money laundering and terrorist financing. 

AYO.NEWS says:

This isn’t the first time we’ve seen this kind of thing happen. Back in 2019, we reported how legitimate Malta-based businesses were finding it ever more difficult to access banking, as financial service providers used ever-tightening anti-money laundering rules to justify refusing or withdrawing services. 

Taking a step back, the current Swedish issues are merely part of a much wider problem, in which well meaning politicians and bureaucrats have introduced rafts of new regulations that are, while great on paper, fundamentally flawed and unworkable in the real-world. The end result is very little effect on organised crime, but an increasingly damaging impact on legitimate businesses. 

Stepping back even further, we’re seeing the endemic silo mentality of governments, regulators, and ‘experts’, lead to well-intentioned, but ultimately damaging, policies in everything from data protection (can anyone say “GDPR”) to the response to the COVID-19 pandemic. 

We guess it’s a sign of the times…

The action follows a UKGC assessment that revealed social responsibility, money laundering, and marketing failures. 

In Touch Games Limited operates bonusboss.co.uk, cashmo.co.uk, casino.mfortune.co.uk, casino2020.co.uk, drslot.co.uk, mfortune.co.uk, mrspin.co.uk, pocketwin.co.uk and slotfactory.com.

According to the Gambling Commission, the operator’s litany of failures included:

Social responsibility failings included:

• Stating in its Responsible Gambling Team interaction guidance that a bonus may be offered if a customer provides identification.
• Not putting into effect its policies and procedures for customer interaction for seven customers where it had concerns that a customer’s activity may indicate problem gambling.
• Not using all relevant sources of information to ensure effective decision making, and to guide and deliver effective customer interactions for those seven customers. If the Licensee had followed its policy it should have given more consideration to placing mandatory limits on customer accounts.
  

Anti-money laundering failings included:

• Having a risk assessment which did not take into account the risk of allowing customers to use a payment provider which also acts as an exchange for crypto-currencies.
• Neglecting to conduct appropriate levels of Enhanced Customer Due Diligence.
• Failing to critically review Source of Funds information once it was requested.

Fair and transparent terms and practices failings included:

• Not stating in an SMS text the minimum and maximum deposits in an offer’s significant terms.
• Not stating in an SMS text the time limit for which the bonus offer could be claimed.
  

In Touch Games will now be required to contract, at its own expense, independent auditors to carry out an audit to ensure full compliance with the License Conditions and Codes of Practice.

Richard Watson, Gambling Commission Executive Director, said: “Through our challenging compliance and enforcement activity we will continue our work to raise standards in the industry and continue to hold failing operators to account.”

A building with weak or cracked foundations is a disaster waiting to happen. Eventually the building will fall apart – and no fancy mouldings or shiny new roof will be able to hide it. 

Likewise, hosting is the absolute foundation of your business structure, and iGaming operators especially should keep that in mind when choosing a provider. Because, at the end of the day, if your website is down due to a DDoS-attack and lack of customer support, what difference does everything else make? What’s the point in having the best games and a fantastic looking site, if no one can access it?

Internet Vikings is an established provider of advanced digital solutions, boasting a long history of deep involvement with the online gaming industry. So, here are 5 key reasons why iGaming operators really should consider Internet Vikings as their hosting provider. 

We’ve deliberately left out all the complicated tech talk, because for a premium global HSP, it’s a given. Of course, if you want to find out more on that side of things, everything is available at the Internet Vikings’ website. But, for now, we’ll focus on the iGaming side of the question.

1. Experience in the industry

Internet Vikings have been focused on iGaming as their primary market since 2015. Over the past 5 years, the company has identified the most important areas for iGaming providers regarding hosting, and consistently excelled in them. Here’s what the Chairman of Internet Viking’s board, Jesper Kärrbrink says:

“An iGaming operator is like a bank. If players don’t trust it, they  don’t use it. So as a hosting company, we can’t be down and can’t let down our partners. Then there is also flexibility, the ability to move with the customers into new markets. Being innovative in finding new solutions for our customers to grow and to reduce the cost. I think we have our strengths in all those areas.”

2. Global presence 

As a company focused on iGaming, Internet Vikings has offices in key industry hubs, like Stockholm and Malta. The company also has branches in Germany, South Africa, and Ukraine. Even better, their state-of-the-art data centers can be found on every continent (except Antarctica), in carefully chosen locations, that allow the Vikings to reduce latency to key markets to minimal values. Co-founder and CTO Victor Jerlin explains:

“If you have customers in Asia and hosting in Sweden, it adds 250 ms just because of the speed of light – it can’t go faster. That’s why we opened up in Taiwan, that is why we opened up in Amsterdam, that is why we are going to open up in other strategic locations for iGaming.”

3. Regulatory compliance

There’s no doubt that regulatory compliance is a very hot topic for the iGaming industry. The Vikings certainly have their house in order in that regard – all their data centres have ISO 27001 certification. But there’s more. Because the ‘Privacy Shield’ framework for transatlantic exchanges of personal data has not been valid as of July 16, 2020, using US-based cloud service providers can become a major security issue for companies. This is because US authorities now have the right to demand personal and other data from US-based providers. Given this, migrating to a European provider ASAP could save your company a whole lot of hassle and potential liability. As a European provider Internet Vikings is 100% compliant with, and fully protected by, GDPR.

4. Compatibility 

This is something that is often overlooked by iGaming operators. Perhaps no one can explain the significance of compatibility better than the co-founder and CCO of Internet Vikings Rickard Vikström: 

“There is an issue in working with giants of the hosting industry such as AWS, GCE, or Microsoft Azure. It works well when everything is good, but if there is a problem you don’t want to work with a player that is so much bigger than your company. Internet Vikings is specialized in hosting for the iGaming industry and as we are on the same level with our customers and care about them. I would say that this is one of the main things.”

5. Trust from operators and game developers 

Operators and developers all over the world trust Internet Vikings to handle their most valuable data and support their demanding operations. The client portfolio of the company includes Green Jade Games, BetHard Group, GameLounge Ltd, and many other companies related to the industry. This is no surprise when you consider that Internet Vikings have consistently demonstrated stability throughout their history. In the words of Peter Ekmark, Internet Vikings CEO: 

“This company has a legacy. It didn’t start just yesterday. It has been growing slowly but surely for 12 years. In a nutshell that means, we were there yesterday and we’ll be here tomorrow.” 

Special Offer for All New Cloud Hosting Accounts

Considering Internet Vikings as the HSP for your websites? You might like to check out the special offer they’ve prepared for all new cloud hosting accounts. You can find out more about how the Vikings can help you protect your business by getting in touch with one of their expert account managers today. 

FIND OUT MORE

AYO.NEWS says:

The Internet Vikings have raised some interesting points there. Latency, especially, is becoming a major issue for iGaming, and even more so video gaming and esports, companies. Never underestimate how long a split second can seem to an impatient customer, or how annoying a fraction of a second lag can become. And, of course, as data demands grow, latency issues will only get more critical. So, having your customers served by local data centres can be a very wise investment. 

Likewise, the US issue deserves serious consideration. Though the European Union has often been criticized for over-regulation, its laws, like GDPR, actually afford a much greater degree of privacy protection than those in the US, and handing over the data of European customers to US authorities could potentially land operators in all sorts of hot water – even if they are legally obliged to stateside. Considering this, it’s probably smarter to just avoid those headaches all together. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020.

In addition to creating a simpler and faster onboarding process for Pinnacle users, Sumsub’s KYC and AML measures, including biometric checks and source of funds verification, will help Pinnacle protect its users from risks and promote social responsibility. 

The partnership will also give Pinnacle access to tools to combat payment fraud prevention and improve risk management. 

Commenting on the news Legal, Compliance and Regulatory Affairs Manager at Pinnacle, Veronique dos Reis, said:

“The integrity and efficiency of our platform is a part of our success. So, to keep our operational levels high, we needed a solution that could accelerate compliance processes and level-up security. 

“Sumsub’s solution was a great choice for us. We have accelerated the verification of clients, source of funds verification, and have enabled the detection of false chargebacks. It was a great leap forward in terms of the internal organisation of our compliance processes. Overall, we are providing a better onboarding experience for the members of our betting community.”

While Co-founder of Sumsub, Jacob Sever, added:

“Betting companies have to stay compliant with both AML and responsible gambling requirements, which is not an easy task. We are glad to be utilizing our expertise in order to help Pinnacle to become more socially responsible and protect their customers from any possible gaming-related issues.”

AYO.NEWS says:

As we reported last week, despite being well-known as a soft-touch regulatory jurisdiction thus far, Curaçao has announced plans to introduce a new regulatory regime, in coordination with the Dutch government. Though Pinnacle has clearly taken a proactive approach to compliance, it remains to be seen if the bulk of license holders in the Dutch Caribbean territory will put in similar efforts, or simply leave for pastures new. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020.

The Malta-based company has added the feature to enable operators to easily identify what language a website is promoting their brand in. The new feature will help operators achieve compliance with regulatory requirements in specific markets, like Germany, where strict new rules regarding marketing are being introduced soon. 

Commenting on the new feature CCO at GiG, Ben Clemes, said:

“We are continuously improving and advancing on our products not only to ensure they reflect what is happening in the market but also so that we can continue to meet the needs of our partners. The new language feature not only helps to ensure that our partners are ahead of the game and are fully compliant in newly-regulated markets, but it also enables them to do so effectively and efficiently via a fast and automated process.”

AYO.NEWS says:

With marketing rules tightening across many regulated markets, it’s never been more critical to remain compliant, so anything that can automate some of the process will be welcomed by operators. Obviously, this kind of tool will work well for languages that are only used in a handful of markets, like German or Italian, but will be less helpful for more widely used languages. 

Staying with GiG, last week the company announced it was resurrecting its Betspin.com brand as a live casino-focused affiliate site. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020.

AG Communications, a subsidiary of Aspire Global, has been slapped with a conditional fine of SEK 15M (approx. €1.47M) by Sweden’s Patent and Market Court, for Gaming Act Violations related to its Karamba brand. Specifically, the sanction was applied for advertising that violates the Gaming Act’s requirements for moderation. 

The operator has also been ordered to provide clearer information when it comes to promotional offers. This action was prompted by a Karamba promotion offering a SEK 2,000 bonus, but attaching steep wagering requirements, with players needing to gamble more than SEK 70,000 to actually get the bonus.

Unsurprisingly, the sanctions were welcomed by Sweden’s consumer ombudsman, Konsumentverket, with spokesperson Pär Magnusson saying:

“It is good that the court clearly states it is not allowed to mislead someone into believing you get a big bonus, when in fact it is about having to play for very large amounts for a short time to have a chance to get the bonus or be able to withdraw some winnings.”

Despite the action, reports suggest that the company’s actions to remedy the failings and ensure compliance, mean it has escaped having to actually pay the fine. 

AYO.NEWS says:

Perhaps the real surprise is that operators have been allowed to get away with using wagering requirements for promotions at all, especially in markets like Sweden and the UK.

Similar practices simply wouldn’t be tolerated in other sectors, and as we’ve pointed out before, there’s the very real possibility that, at some point, in some market, mass civil legal action will be brought forward, in the same manner as the PPI drama in the UK, with potentially catastrophic consequences for even the biggest operators. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020.

The Ireland-based operator was found to be using unsuitable and ineffective AML policies for its Boylesports.com and Boylecasino.com sites. 

As a result, in addition to the fine, stricter conditions have been applied to the operator’s license. These include the requirement to appoint a qualified Money Laundering Reporting Officer, and to ensure all staff, including senior management, undertake AML training. 

Commenting on the case executive director of the Gambling Commission, Richard Watson, said:

“It is vital that all gambling businesses have effective anti-money laundering policies and procedures firmly in place and as part of our ongoing drive to raise standards we will continue to take tough action against operators who do not.”

Earlier this month, the UKGC also revoked the license of Silverbond Enterprises, operator of Park Lane Casino, London, after changes regarding the control of the company. 

Staying with BoyleSports, at the end of October, the company extended its partnership with gambling technology company Playtech for another five years. 

All original content featured on this site is © Pentagon Digital Limited, 2020.

The Committees of Advertising Practice (CAP) has launched a public consultation on the proposed ban, saying it is part of its drive to stop advertisers targeting under-18s. 

Advertisements that are deemed likely to appeal to under-18s are already banned in the UK, but the proposed blanket celebrity ban would apply to all advertisements, even if they were clearly targeted at adults.  Additionally, the proposals call for the rules about imagery, themes and characters to be strengthened further, to include characters’ behaviour, language, fashion, and appearance etc. 

Discussing the proposals Director of the Committees of Advertising Practice, Shahriar Coupal, said:

“The consultation proposes a strengthening of our rules and guidance which will help us in our ongoing work to prevent children, young and other vulnerable people from being harmed or exploited by gambling advertising. 

“It responds to valuable research commissioned by GambleAware that has highlighted how gambling ads have more potential than previously understood to adversely impact these audiences – that’s something we take very seriously and that we are aiming to address.”

Though the CAP has so far resisted growing calls for a complete advertising ban, it has said it thinks celebrities should be banned from featuring in such adverts. By way of an example, the CAP said that, under its new rule, the England football captain would be prohibited from featuring in gambling advert. 

AYO.NEWS says:

It doesn’t take a genius to realise the absurdity of these proposals. In the age of social media, who exactly is going to define what constitutes a celebrity? And, who is going to define what fashions or actions are acceptable?

The simplistic example (England football captain) shows just how basic the CAP team really is, and the entire episode is indicative of how the committee has been hijacked by politically-correct, nanny state insanity. 

Really, if the CAP is going to go this far, they should just shoot for the heart, and ban all gambling advertising, rather than creating yet another unworkable nightmare. 

Illustrating just what a minefield the UK market has already become for operators, earlier today Betsson announced it is immediately withdrawing 8 out of its 9 brands from the market, citing the constantly changing regulatory environment in the country as one of the reasons.

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020.

The exchange, which is owned by 100x Group (formerly known as HDR Trading), has drawn criticism in the past for being too lax regarding compliance, having no customer ID or verification checks in place. 

But, as of 28 August, BitMEX will be launching a new user verification program, with all customers required to complete ID checks within six months.

The exchange has said that the new procedures should only take customers five minutes to complete, and as an incentive it will be running a trading tournament open only to verified customers.

BitMEX is currently facing a potentially huge lawsuit in California, accusing it of being “deliberately designed, from the ground up” to aid or abet in a “myriad of illegal activities.” Meanwhile, another lawsuit, in New York, accuses the exchange of being involved in selling unlicensed securities without broker-dealer licensing, and engaging in market manipulation of cryptocurrencies. 

AYO.NEWS says:

We’re sure some BitMEX customers won’t be too happy about this, but it was always going to happen, so they should have been expecting it. On the plus side, it should give many people more confidence in the exchange, and is sure to help BitMEX comply with the myriad of local crypto regulations around the world. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020