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Novatech Faces Growing Regulatory Pressure as Sweden Blocks Operator Over Unlicensed Gambling

European regulators are tightening their grip on offshore gambling operators, and Novatech has now found itself under scrutiny for the second time in just a matter of days. Sweden has become the latest country to take action against the firm, ordering an immediate halt to its operations in the country after determining that several of its websites were targeting Swedish players without the required licence.

The decision was issued by the Spelinspektionen, which concluded that Novatech had been offering gambling services to Swedish residents despite lacking the regulatory approval required under national law. The ruling effectively blocks the operator from providing its services in Sweden.

Investigation reveals targeting of Swedish players

The Swedish regulator’s investigation took place between 23 and 25 February 2026 and focused on multiple domains linked to the company. Authorities examined several websites, including qbet.com, mangacasino.com, slotexpress.com, 55bet.com and 30bet.com.

During the inspection, investigators observed that users connecting from Swedish IP addresses were automatically assigned Sweden’s country code when registering accounts. According to the regulator, this design choice strongly indicated that the platforms were structured to accommodate Swedish players rather than actively preventing them from joining.

Regulators also found evidence suggesting the operator’s brands were being promoted directly to Swedish audiences. Swedish-language websites and video creators were reportedly advertising the platforms, further reinforcing concerns that the company was deliberately seeking customers in the country.

Authorities also attempted to simulate a player experience by initiating a concealed test purchase on one of the platforms. While the transaction itself was not completed, investigators confirmed that Swedish users could freely create accounts and begin the registration process without any technical barriers.

Player protection cited as primary concern

The regulator framed its decision primarily around consumer protection. Under Sweden’s gambling legislation, operators must hold a local licence to legally offer services to residents. These licences require companies to follow strict rules around responsible gambling, age verification, and player safeguards.

Without such oversight, Swedish authorities argue that players could be exposed to platforms operating outside the country’s consumer protection framework.

Since Sweden overhauled its gambling system in 2019 and opened the market to licensed private operators, regulators have been locked in an ongoing battle with offshore platforms that attempt to reach Swedish customers without obtaining local approval. While licensed operators dominate the sports betting sector, the online casino space continues to see significant activity from unlicensed sites.

Second regulatory clash in a single week

The Swedish ban arrives just days after Novatech faced another major regulatory action elsewhere in Europe.

Earlier this week, the Dutch gambling regulator, Kansspelautoriteit, imposed a record €24.9 million penalty on the company for illegally targeting players in the Netherlands.

Dutch investigators reported that they were able to register accounts, deposit funds, and gamble across multiple domains associated with the operator without encountering restrictions designed to block local users. The regulator also flagged weaknesses in the operator’s age verification procedures and noted that cryptocurrency payments were available on the sites.

The fine could have been significantly larger. Dutch officials indicated that the penalty would have exceeded €100 million if not for a legal cap that limits fines to a maximum of 10% of a company’s global turnover.

Increasing pressure on offshore operators

Taken together, the actions from Sweden and the Netherlands highlight the growing willingness of European regulators to coordinate enforcement against offshore gambling operators targeting their markets.

Authorities across the region have increasingly focused on websites that attempt to bypass national licensing systems by operating from overseas jurisdictions while still marketing to local players. Regulators argue that these practices undermine consumer protection measures and distort competition for licensed operators.

For Novatech, the back-to-back actions suggest that regulatory scrutiny may be intensifying. As European watchdogs continue to investigate unlicensed gambling activity, more jurisdictions could potentially follow Sweden and the Netherlands in taking enforcement measures against operators that fail to comply with national licensing regimes.

Source: sbcnews.co.uk

 

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Ingi Thor Arngrímsson
Ingi Thor Arngrímsson
Ingi is the Editor in Chief of iGamingToday.com, where he keeps a close eye on the stories, regulations and industry moves shaping the global iGaming sector. With a particular interest in gambling regulation, he’s always looking for the next story worth telling and the developments that deserve a closer look. Outside of iGaming, life is a mix of family time, growing his own vegetables and getting outdoors for a bit of hunting. Whether he’s tracking down a story or something in the wild, curiosity tends to keep him busy.

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