Videoslots Ordered to Pay $1.3 Million for Breaching Swedish Gambling Protocols

Spelinspektionen, the Swedish Gambling Authority, has fined online gambling operator Videoslots $1.3 million for failing to protect bettors from excessive gambling.

Now rebranded as Immense Group, the Swedish regulator also issued a formal warning after identifying serious deficiencies in Videoslots’s responsible gambling protocols. The April 16 verdict determined that Videoslots had violated its statutory duty to protect consumers as listed in Chapter 14 of Sweden’s Gambling Act.

Significant Breaches of the Gambling Act

This follows a Swedish Gambling Authority investigation launched in the spring of 2024, which uncovered the firm’s systemic lapses in monitoring gambling activities and problematic intervention processes.

The investigation saw Sweden’s regulators examine the gambling accounts of 12 Videoslots account holders over three months. All 12 exhibited the hallmarks of problem gambling. Five of those observed were between the ages of 18 and 24.

The report showed all 12 players had demonstrated problematic behaviors, such as marathon betting sessions and frequent and often high-value deposits, in conjunction with substantial financial losses.

In one case, a Videoslots player was monitored for staking over $433,000 in a single month, and a separate customer was also allowed to make 28 deposits in a single day.

The Spelinspektionen was also critical of Videoslots’ responses to the automated system alerts, which flagged these problematic wagering behaviors. The company’s limited countermeasures included just pop-up warning messages and emails.

In doing so, the regulator deemed the company had failed to act accordingly, maintaining that they should have set timely deposit limits or suspended high-risk player accounts.

Videoslots Contests Claims, Arguing Swedish Legal Ambiguity

In response to Spelinspektionen’s announcement, Videoslots defended its actions, indicating it had already invested heavily in advanced player protection tools and enforced a $1,300 loss cap for all of its young adult users.

The company verified that they had also restricted over 1,000 accounts while the agency had been analyzing the users’ accounts. Videoslots also alleged that data protection regulations limited the information it could use to determine a player’s risk level.

However, the regulator rejected these arguments, stating that Videoslots’ actions were insufficient and enacted far too late. Spelinspektionen also contended: “The Data Protection Regulation does not limit the company’s obligation to comply with the gambling regulation’s provisions on the duty of care.”

Countering these claims, Videoslots reiterated that the regulatory guidance lacked clarity and argued that the three-month review period was too narrow to assess long-term player behavior.

Videoslots said in a statement, “The decision appears to assume that monthly deposits above SEK10,000 are inherently problematic irrespective of a player’s income, loss, or actual time spent playing.”

Given three weeks to appeal, the company said it would contest the regulator’s decisions, outlining the need for clearer legal standards in the future.

Incidentally, this is not the first time the Swedish authorities have penalized Videoslots financially. In 2023, the firm was fined $808,000 for consistent breaches of the country’s anti-money laundering and terrorist financing laws.

Spelinspektionen acknowledged Videoslots’ cooperation and subsequent operational refinements. In doing so, they deemed the fine and warning an appropriate punishment, stating that the company’s license was not threatened.

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 Spelinspektionen, the Swedish Gambling Authority, has fined online gambling operator Videoslots $1.3 million for failing to protect bettors from excessive gambling. Now rebranded as Immense Group, the Swedish regulator also issued a formal warning after identifying serious deficiencies in Videoslots’s responsible gambling protocols. The April 16 verdict determined that Videoslots had violated its statutory duty
The post Videoslots Ordered to Pay $1.3 Million for Breaching Swedish Gambling Protocols appeared first on CasinoBeats.