Svenska Spel Sport & Casino, the digital branch of the state-owned Swedish gambling operator, has successfully contested an SEK100 million ($10.5 million) penalty fee and warning issued by the regulator Spelinspektionen.
The Administrative Court in Linköping ruled in favor of Svenska Spel during a hearing on June 2. The charges against the operator’s digital arm were initially brought forward in March of the previous year.
Spelinspektionen had accused Svenska Spel of several failures concerning player duty of care, which allegedly breached the country’s 2019 Gambling Act. These shortcomings were identified during a scrutiny period from October to December 2021, where the regulator noted that Svenska Spel did not take sufficient measures to prevent excessive gambling.
The issues particularly highlighted were concerning the handling of 10 customers who had incurred the most significant losses during the supervisory period. The court’s ruling has since overturned Spelinspektionen’s initial warning and penalty fee.
### Svenska Spel Urges Clarity on Duty of Care
Svenska Spel lodged an appeal arguing that the penalty fee was “disproportionate in relation to the shortcomings” identified by the regulator.
Fredrik Wastenson, CEO and business area manager at Svenska Spel Sport & Casino, emphasized the need for greater clarity in interpreting duty of care obligations.
Following its successful appeal, Svenska Spel has advocated for revisions in the regulatory approach to duty of care within Sweden. The operator pointed out that the existing regulations lack clarity, leading to recurring compliance challenges for operators. “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 upheld,” stated Wastenson.
However, the company acknowledges that the case might not yet be fully resolved as Spelinspektionen still has the option to appeal the latest court decision.
### Three Companies Fined for AML Failings
On the same day as Svenska Spel’s court victory, Spelinspektionen imposed fines on three companies for failing to adhere to anti-money laundering protocols.
Betsson Nordic received a warning and a fine of SEK6.5 million for AML deficiencies within Sweden. TSG Interactive, a Flutter Entertainment subsidiary, was penalized SEK7 million. Additionally, Snabbare faced a sanction fee of SEK5.5 million.
These penalties are part of a busy year for the regulator, which recently fined several charity and political organizations operating lotteries for insufficient control over contractors and marketing infractions.
Furthermore, Spelinspektionen imposed a SEK10 million fine on Kindred’s subsidiary Spooniker for AML shortcomings, while Videoslots was ordered to pay SEK12 million for not adequately counteracting excessive gambling.