Svenska Spel Sport & Casino, the digital branch of the state-owned Swedish gambling operator, has successfully overturned a SEK100 million ($10.5 million) penalty fee and a warning issued by the regulator Spelinspektionen.
The Administrative Court in Linköping sided with Svenska Spel during a hearing on June 2. The legal action stemmed from allegations raised against the operator’s digital division in March of the previous year.
Originally, Spelinspektionen charged Svenska Spel with multiple failures in their player duty of care obligations, which were claimed to violate the nation’s 2019 Gambling Act. These deficiencies were identified in an investigation covering the period from October to December 2021.
The regulator highlighted that Svenska Spel had not taken adequate steps to prevent excessive gambling.
One significant point raised by Spelinspektionen included the manner in which the operator managed 10 customers who had incurred the highest losses during the supervision period, highlighting a failure in protective measures for players.
This court decision has annulled the initial warning and penalty imposed by Spelinspektionen.
### Svenska Spel Urges Clarity on Duty of Care
The company initiated an appeal, arguing that the penalty was “disproportionate in relation to the shortcomings” identified by the regulator.
Fredrik Wastenson, CEO and business area manager of Svenska Spel Sport & Casino, emphasized, “There is a need to create greater clarity in the interpretation of the duty of care.”
Following the successful appeal, Svenska Spel has advocated for amendments in the regulation concerning duty of care in Sweden, pointing out that the existing rules are ambiguous, causing operators to frequently fall short.
“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 stated.”
Although Svenska Spel won this appeal, the case may still continue as Spelinspektionen has the option to challenge this latest ruling.
### Three Companies Fined for AML Failings
Concurrently with Svenska Spel’s ruling, Spelinspektionen imposed fines on three companies for failing to comply with anti-money laundering regulations.
Betsson Nordic received a warning and a fine of SEK6.5 million for deficiencies in its AML practices in Sweden. TSG Interactive, a Flutter Entertainment subsidiary, was fined SEK7 million, while Snabbare faced a SEK5.5 million sanction.
These fines are part of a series of actions taken by the regulator this year, which have included penalties imposed last week on several charitable and political organizations that manage lotteries for inadequately supervising contractors and committing marketing offenses.
Additionally, Spelinspektionen fined Kindred’s subsidiary Spooniker SEK10 million for AML shortcomings, while Videoslots was ordered to pay a SEK12 million sanction fee for failing to combat excessive gambling.
The allegations against Svenska Spel involved a lack of duty of care concerning 10 customers who faced significant financial losses from October to December 2021.