Swedish fintech giant Klarna, through its subsidiary Sofort, has been implicated in facilitating payments for unauthorized online gambling platforms. Investigations have revealed that Sofort’s services are being utilized by unlicensed online casinos, raising significant compliance and regulatory concerns.
Klarna and Sofort’s Involvement in Unauthorized Gambling
Recent reports have identified Sofort as a payment processor for several online casinos operating without proper licenses. These platforms have been accepting player deposits via Sofort’s bank transfer services, thereby enabling unlicensed gambling activities.
Case Studies: Atlantis Slots and PlayRegal
Two notable examples are the online casinos Atlantis Slots and PlayRegal. Both platforms have been recruiting players within the European Economic Area (EEA) without the necessary licenses and have been accepting deposits through Sofort. Following investigative reports, Sofort has been removed as a payment option from these sites. However, it remains available on other platforms, such as TTVGAMES.
The Role of Continent Pay and Intelli Global Ltd
Further investigations have uncovered that unauthorized payment processors, such as Intelli Global Ltd, operating under the brand TTVGAMES, have been facilitating transactions for these unlicensed online casinos. These entities have been utilizing Sofort’s services to process payments, thereby contributing to the proliferation of illegal online gambling operations.
Compliance and Regulatory Implications
The involvement of Sofort in processing payments for unlicensed online casinos raises significant compliance issues for Klarna. It underscores the need for stringent due diligence and monitoring processes to prevent the facilitation of illegal activities through their payment platforms.
Conclusion
Klarna’s subsidiary, Sofort, has been found to facilitate payments for unauthorized online gambling platforms, highlighting critical compliance gaps. This situation calls for immediate action to enhance monitoring and due diligence procedures to prevent the misuse of payment services for illegal activities.