Svenska Spel Sport & Casino, the digital branch of the state-owned Swedish gambling operator, has won an appeal against a substantial SEK100 million ($10.5 million) penalty fee and a warning issued by the regulator, Spelinspektionen.
The victory came during a court hearing at the Administrative Court in Linköping on the 2nd of June. The initial accusations were made against the operator’s digital arm in March of the previous year.
In the allegations laid out, Spelinspektionen charged that Svenska Spel had committed multiple breaches of the 2019 Gambling Act’s player duty of care requirements. These breaches were notably found during an investigation conducted from October to December 2021, where the regulator pinpointed that the operator had not taken adequate actions to guard players against excessive gambling.
Specifically, Spelinspektionen was concerned about the operator’s management of 10 customers who had incurred the greatest losses during the audited period, asserting Svenska Spel’s failure to sufficiently protect players. However, this ruling has invalidated the regulator’s initial warning and penalty fee.
### Svenska Spel Urges Clarity on Duty of Care
Svenska Spel lodged the appeal citing that the penalty was “disproportionate in relation to the shortcomings” identified by the regulator. Fredrik Wastenson, CEO of Svenska Spel Sport & Casino and business area manager, emphasized the necessity to “create greater clarity in the interpretation of the duty of care.”
Following the successful appeal, Svenska Spel has advocated for revisions to the Swedish duty of care regulations, articulating that the existing rules lack clarity, leading to continual non-compliance by operators. “We believe the authority may only enforce measures that are supported by a so-called legality principle, as also confirmed by the court,” the operator noted.
Though the court ruled in favor of Svenska Spel, the case might still encounter further developments since Spelinspektionen retains the option to challenge the recent decision.
### Companies Penalized for AML Breaches
This legal victory for Svenska Spel coincided with Spelinspektionen’s announcement of fines against three companies for failing anti-money laundering regulations. Betsson Nordic was penalized with a warning and a SEK6.5 million fine for AML deficiencies in Sweden. Similarly, TSG Interactive, affiliated with Flutter Entertainment, faced a SEK7 million fine, and Snabbare was fined SEK5.5 million.
These events mark an active year for the regulator, which last week also imposed fines on various charity and political organizations running lotteries, citing inadequate contractor oversight and marketing infractions. Additionally, Kindred’s Spooniker subsidiary was fined SEK10 million, whereas Videoslots was ordered to pay SEK12 million for not adequately preventing excessive gambling.
The cases underscore ongoing regulatory scrutiny in matters of duty of care and financial compliance across Sweden’s gambling landscape.