The Swedish Administrative Court has overturned the decision to issue Svenska Spel with a warning and fine of SEK100m (£7.5m).
The Swedish Gambling Authority (SGA) originally issued the operator the sanction in March 2024 for perceived duty of care failings.
An audit conducted by the regulator, between 17 October and 17 December 2021, examined the gambling losses of 10 players and concluded that all 10 customers had showed signs of excessive gambling by having high deposit limits, depositing large sums of money and racking up big losses.
The regulator subsequently ruled that Svenska Spel had been passive in its duty of care towards customers and warranted the assigned sanctions.
This led Svenska Spel to appeal the decision, which was escalated to the Administrative Court in Linköping.
The operator argued that it had implemented the necessary responsible gambling measures to reduce the levels of gambling-related harm experienced by its customers.
According to Svenska Spel, as there were no concrete rules to clarify which specific responsible gambling measures should be applied, its protocols in place at the time should have been deemed sufficient.
The Administrative Court sided with Svenska Spel, citing the ambiguity in the country’s gambling legislation regarding responsible gaming measures.
The court statement read: “The court believes that the fact that the customers made large losses is primarily evidence that they have been gambling excessively. At the same time, the court notes that before, during and after the period covered by the supervision, Svenska Spel has taken several gambling liability measures against the 10 customers, including certain access limitations and restrictions.
“The Administrative Court understands the Gambling Authority’s views that it can be questioned whether the measures taken by Svenska Spel in all cases have been sufficient to counteract the harmful effects of excessive gambling and whether they have been taken quickly enough.
“At the time of the supervision, however, there were no concrete rules and practices for licensees to follow regarding which measures needed to be taken to fulfil the duty of care in accordance with Chapter 14, Section 1 of the Gambling Act, and when these measures should be taken in such a case. The assessment of whether it is right to intervene with a warning and a penalty fee must therefore be characterised by restrictiveness in order to be compatible with the principle of legality.
“The Administrative Court’s overall assessment is that it has not been shown that Svenska Spel has failed in its duty of care under Chapter 14, Section 1 of the Gambling Act in such a way that it constitutes grounds for intervention under Chapter 18, Section 12 of the Gambling Act. The court has therefore decided to overturn the Gambling Authority’s decision.”
Svenska Spel Sport & Casino CEO and business area manager Fredrik Wastenson lauded the court’s decision, claiming that the initial sanction was “disproportionate” to the alleged violation.
He said: “It is gratifying that the Administrative Court upholds our appeal and overturns the decision of the SGA.
“We appealed because we believe that the penalty fee is disproportionate in relation to the shortcomings and because there is a need to create greater clarity in the interpretation of the duty of care.
“We believe that the authority may only take measures that are supported by the legal order, the so-called principle of legality, which the court has also stated.”
The SGA still has the opportunity to appeal the judgment in Sweden’s Court of Appeal.
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Operator hails “gratifying” decision following initial March 2024 sanction for perceived duty of care failings
The post Swedish administrative court overturns Svenska Spel’s SEK100m SGA fine first appeared on EGR Intel.