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Svenska Spel Sport & Casino has secured a major victory in its legal battle with the Swedish Gambling Authority, as the Administrative Court in Linköping has today overturned a SEK100 million fine imposed on it in March last year.
The SGA had accused the state-owned gambling operator of violating the 2019 Gambling Act, specifically concerning its duty of care in 2021. Following an investigation, the regulator determined that Svenska Spel had not implemented adequate measures to safeguard players from excessive gambling. The authority raised alarms about the handling of 10 players who had incurred significant losses during the oversight period.
It went on to issue a SEK100 million fine to Svenska Spel last year, but both the penalty and warning were overturned in a court ruling today (June 3).
SGA Could Still Appeal
Svenska Spel argued that its appeal was necessary because the imposed penalty was “disproportionate in relation to the shortcomings” identified by the regulator. Fredrik Wastenson, CEO of Svenska Spel Sport & Casino, called on the regulator for clearer guidelines regarding the duty of care. He noted that the current regulations lack clarity, leading to consistent shortcomings among operators.
The operator has also called for a reevaluation of the regulations governing the duty of care in Sweden. “We believe the authority may only take measures that are supported by the legal order, the so-called legality principle, which the court has also stated.”
It’s also worth noting that the judgment isn’t final yet and that the SGA can still appeal to have the fine reinstated.
Busy Year for the SGA
This year has seen the Swedish gambling regulator particularly active and issuing significant fines across multiple operators and groups for various regulatory breaches.
Earlier this year, the regulator fined Videoslots SEK12 million for failing to address issues related to excessive gambling, and also Kindred’s subsidiary Spooniker SEK10 million due to shortcomings in anti-money laundering (AML) compliance.
Last month, several political and charitable associations were hit with fines up to SEK3 million for aggressive telemarketing lottery campaigns and failing to control contractors.
In the latest wave of enforcement, which came on the same day the Svenska Spel appeal was announced, the SGA issued fines totaling SEK19 million (€1.7 million) to three operators for not adequately verifying the source of their customers’ funds. TSG Interactive PLC, which runs PokerStars, received the largest fine at SEK7 million, followed closely by Betsson Nordic Ltd at SEK6.5 million and Snabbare Ltd at SEK5.5 million.
Source: IGB
