Danish Financial Supervisory Authority Orders Inpay to Stop New iGaming Deals

The Danish Financial Supervisory Authority (DFSA) has instructed Inpay A/S, a payment service provider, to suspend the formation of new business relationships with clients in the iGaming sector until the company can demonstrate that it has corrected serious violations of the Anti-Money Laundering Act. The DFSA's decision follows findings from an investigation conducted in March of this year, which identified multiple non-compliances by Inpay.

DFSA Imposes Immediate Restrictions on Inpay Due to Serious Non-Compliances

The measure adopted by the DFSA focuses on prohibiting the establishment of new business relationships with online gambling operators. This restriction will remain in effect as long as the deficiencies identified by the regulator persist. Inpay operates under a license in accordance with the Danish Payment Act, providing cross-border payment solutions for clients in online gambling, financial institutions, and other entities. The DFSA highlighted that a significant proportion of Inpay's total transaction volume comes from online gambling clients located outside Denmark and the European Union.

Specific Violations of the Anti-Money Laundering Act

The DFSA's investigation identified various non-compliances by Inpay in the application of due diligence procedures and transaction monitoring for clients in the iGaming sector. Among the violations detected are:

• Lack of adequate verification in response to changes in clients' circumstances
• Omission of assessment regarding the purpose and intended nature of business relationships, especially for clients considered high-risk in terms of money laundering and terrorist financing

The regulator deemed the lack of controls on high-risk clients and complex corporate structures as particularly aggravating circumstances. According to the DFSA:

“Deficiencies in due diligence procedures and transaction monitoring entail a real and significant risk that the company supports illegal gambling activities and provides payment services without permission, which carries an especially high risk of money laundering and terrorist financing.” (DFSA, August 2026)

Additionally, the DFSA warned that unregulated gambling providers are not subject to the same prevention requirements and consumer protection measures applicable to licensed operators, increasing the identified risks.

Voluntary Measures and Conditions to Lift Restrictions

Following the notification received, Inpay informed the DFSA of its voluntary suspension of establishing new business relationships in the iGaming sector. This pause will remain until the deficiencies identified by the regulator are corrected.

The DFSA will allow the resumption of activities with new clients only after verifying compliance with the Anti-Money Laundering Act and the implementation of effective monitoring and due diligence processes for existing and future clients.

Impact on the Payments and Online Gambling Sector

Inpay, founded in 2008 and licensed under the Danish Payment Act, facilitates transactions for financial institutions, iGaming operators, corporations, and non-governmental organizations. According to data on its website, the company processes one million transactions monthly – a portfolio that includes international operators like 888. Inpay presents itself as the fastest-growing company in Denmark.

The case highlights the increasing regulatory requirements in the cross-border payments sector linked to iGaming, both within the European Union and in other jurisdictions, reinforcing the scrutiny on due diligence and risk assessment of clients in markets outside the regulated area. Obligations concerning the prevention of money laundering are a key issue for companies managing international operations in online gambling and corporate payments.

European Regulatory Context and Implications for the iGaming Market

The actions taken by the DFSA are part of a trend towards stricter regulation regarding financial service providers operating with clients in the iGaming sector, especially when they operate outside the European Economic Area. Inpay's case reinforces the importance of robust internal processes in the face of regulatory oversight and strict compliance with legal frameworks for operators providing payment services to casinos and online operators. For more information on European regulation and its implications, please consult the regulation section.

The future resumption of new agreements by Inpay will depend on the DFSA's validation of the complete rectification of the detected non-compliances, prioritizing the integrity of the money laundering prevention framework in Denmark and the EU.