One year ago, Swedish gambling regulator Spelinspektionen advised Malta-based Bayton Limited to bring improvements to its then incomplete know-your-customer (KYC) methodology and report back to it by June 2021. Now, the operator with a valid license to operate in Sweden’s online gaming market was fined for not notifying the same regulator of a series of changes to its board of directors.
Bayton Limited’s Board Reshuffling Took Place in 2019
The operator has received a SEK 35,000 ($3,710) fine for not notifying the Swedish gaming regulator regarding the changes brought to its management board in 2019. Namely, on April 11, 2019, one Bayton board member stepped down, while another one was promoted to a higher position. The Swedish Gambling Authority (SGA) claims it did not receive news on the respective changes within the legally allotted period of time of two weeks.
The regulator stated that the operator failed to send the notification because of a series of compliance shortcomings regarding the internal methodology of the company. Plus, the SGA also claimed that the board member who took the new position had been subject to other reviews in the past while occupying a different function within the company. Bayton responded that it had reviewed all of its internal routines and brought the necessary changes to prevent similar occurrences in the future.
The SGA considered that simply acknowledging the deed would not suffice to punish the operator’s severe infringement of policies. Accordingly, the regulator also added the penalty fee to its remarks.
Bayton’s Methodology Was Previously Investigated by Spelinspektionen
The operator’s presence in the online gaming market has become critical since its launch in 2001. At the moment, Bayton is running more than 15 highly acclaimed casinos powered by Microgaming and other excellent software providers, all under prestigious licenses from the Malta Gaming Authority and the Kahnawake Gaming Commission. Bayton Limited also operates three popular casino brands in Sweden: Spin Casino, Jackpot City Casino, and Ruby Fortune.
In April 2020, Spelinspektionen launched an investigation into the operator’s methodology used for registering and identifying customers. The investigation was aimed at checking whether the company was aligned with the most recent gambling regulations introduced at the beginning of 2019. The operator had been using BankID and SPAR to stay updated with all of the residents in the country while making sure all of its customers were legal residents.
Players choosing to register an account without BankID were only allowed to use temporary accounts valid for 30 days before being asked to go through ID and address verification. The SGA considered the operator’s methodology to allow players outside the country to register accounts and play for real money. The regulator also labeled bank account statements and domestic bills as insufficient proof that the operator’s customers were, in fact, Swedish residents.
Accordingly, the SGA asked Bayton to closely review its KYC procedures and change them prior to reporting back by the beginning of June 2021.