for early access to the latest igaming videos!
and get the latest igaming news first!
Several political and charitable associations in Sweden have been hit with fines by Spelinspektionen, the country’s gambling regulator, for aggressive telemarketing campaigns and failing to control contractors.
Among those penalized are the Swedish Social Democratic Workers’ Party and its associated youth and women’s leagues, collectively facing a fine of SEK3 million ($313,615). This sanction arose from an investigation into the Kombilotteriet lottery, prompted by an exposé from the newspaper Dagens Nyheter.
The investigation revealed that these organizations employed aggressive telemarketing strategies to sell lottery tickets, a practice that was found to breach Sweden’s marketing laws. The Swedish Consumer Agency, which examined the reports, concluded that the marketing methods used were not only aggressive but also failed to protect consumers adequately.
Spelinspektionen determined that all the sanctioned organizations had violated multiple regulatory requirements. The authority found that their gaming operations lacked the necessary controls to ensure consumer safety and did not adhere to applicable gaming rules. The use of third-party contractors for telephone sales was deemed inappropriate, as these operations were not conducted under secure and controlled conditions.
Kombispel, a subsidiary of the A-lotteries company and the operator of Kombilotteriet, had hired external telemarketing firms to run marketing and sales operations, but the regulator emphasizes that these operations, run by contracted entities, should still be monitored.
“It is the licensees who have full responsibility for the gaming operations, including the operations entrusted to contractors. The Swedish Consumer Agency’s assessment that the licensees have used aggressive business methods and thereby violated the Marketing Act remains unchanged, despite the licensees having taken corrective measures,” Spelinspektionen stated.
Other Charities Face Fines
In addition to the Social Democratic groups, the Swedish Breast Cancer Association and the Swedish Prostate Cancer Association were also sanctioned after an inquiry into their compliance with gaming regulations concerning commission agreements and telephone sales for the Date Lottery (Datumlotteriet).
According to the SCA investigations, some customers reported being signed up for donation subscriptions they did not agree to, while others claimed to have received invoices for tickets they did not order or had any knowledge of.
Both associations claimed that they had outsourced the marketing and sale of tickets under their licensing agreement to an external party. The Swedish gambling authority fined the Breast Cancer and Prostate Cancer Associations SEK500,000 each for not having the required control to offer lottery services in safe conditions.
Source: IGB
