Cashpoint indicted by Danish Gambling Authority for due diligence failures

Spillemyndigheden, the Danish Gambling Authority, has issued an indictment against omnichannel sportsbook Cashpoint Limited.

Cashpoint Denmark AsP, the Denmark facing brand of Austria-based betting firm Cashpoint Sportwetten, was found to have violated rules on business procedures on customer due diligence.

Specifically, Cashpoint’s Danish business had infractions on customer familiarisation procedures at its land-based venues, with failures taking place until 21 December 2022, such as when a customer was not asked to present a document when a win of over DKK 14,870 (€1,996) was paid out.

“Thus, Cashpoint Limited has not complied with the obligations to have sufficient business processes for customer due diligence procedures,” Spillemyndigheden stated.

The authority did note, however, that the indictment ‘does not entail any obligation to act’ for Cashpoint, as the firm’s Danish operations have been revised to ensure its land-based betting operation meets customer familiarisation procedures.

Internationally operator Cashpoint Sportwetten is itself part of the Gauselmann Group, the owner of Merkur Games and XTiP Sportwetten, and began building up its Danish presence back in 2017.

Establishing itself in both the retail and online betting realms in Denmark, Cashpoint secured a foothold in the land-based sector – in which the due diligence infractions took place – by acquiring German operator Tipico’s Danish high-street businesses.

On the need for Danish licence holders to meet due diligence policies, Spillemyndigheden concluded: “The Gambling Authority notes that the rules on business procedures for customer due diligence procedures are completely fundamental in the Money Laundering Act, and violation of the rules as the clear starting point leads to injunctions or prosecution or, in gross or repeated cases, to a police report.”

The indictment comes shortly after the Spillemyndigheden issued a reminder to operators on responsible gaming requirements, covering deposit limits, duty of care and interventions, and marketing in cases of self-exclusion.