Betway faces sanction by Belgian Gaming Commission over financial transparency issues

The Belgian Gaming Commission (BGC) has launched sanction proceedings into Betway citing “cumulative licensing issues and a lack of financial transparency” from the operator.

The sports betting firm could potentially face a six-figure fine, and the stripping of its Belgian licence, although no penalties have yet been confirmed.

The announcement follows a year-long investigation by the BGC’s control service into links between the company’s Maltese office and the British Virgin Islands, first revealed by Belgian newspapers as part of the so-called “Paradise papers”.

The papers alleged the operator  received over €28m in capital from shareholders in the Virgin Islands, although the Commission could not establish if this was the case.

Questions were also raised about the role that Swedish poker players, Jonas Ödman and Patrik Selin played in Betway’s business. Both men were identified by Belgian media in the Paradise Papers investigation relating to Malta-based gambling company Gnuf Limited, which was acquired by Betway in 2012.

Following the year-long investigation, the BGC said it found enough evidence to launch the sanctioning process, and would pass on the information to the Belgian AML-authority, the Public Prosecution Office and the anti-fraud services from the financial federal department.

Betway director of compliance and regulatory affairs, Roger Parkes, said the company has provided all the information requested by the BGC, and that the company would “continue to support the process in full and look forward to reaching a satisfactory conclusion shortly.”

“At this stage no sanction has been applied,” Parkes said.

Betway operates a sportsbook in the Belgian market and has been the “official betting partner” of the Belgian Cup since 2015, renewing its sponsorship for a further three years in 2018. In addition to this sponsorship, the company also sponsors Belgian first division side RSC Anderlecht.