Svenska Spel Triumphs in Appeal, Avoids SEK100 Million Fine

  • UM News
  • Posted 9 months ago
00:00 / 00:00

### Svenska Spel Successfully Overturns Regulatory Penalty

Svenska Spel Sport & Casino, the digital branch of the state-owned Swedish gambling company, has won an appeal against a SEK100 million ($10.5 million) penalty fee and warning issued by the Swedish gambling authority, Spelinspektionen.

The Administrative Court in Linköping ruled in favor of Svenska Spel during a hearing on June 2. The case stemmed from allegations made in March of the previous year, accusing the company’s digital arm of failing to uphold the player duty of care required under the 2019 Gambling Act. The investigation, which spanned from October to December 2021, highlighted that Svenska Spel did not take adequate measures to prevent excessive gambling among its customers.

The court’s decision reverses the initial warning and penalty fee imposed by Spelinspektionen.

### Svenska Spel Demands Clearer Regulations

In response to the overturned decision, Svenska Spel has called for clearer regulatory guidelines regarding the duty of care obligations. The operator argued that the penalty was disproportionate to the cited shortcomings.

Fredrik Wastenson, CEO and business area manager of Svenska Spel Sport & Casino, emphasized the necessity for more precise interpretations of duty of care laws, suggesting that regulatory actions should adhere strictly to the principle of legality, a stance affirmed by the court.

Despite the successful appeal, Svenska Spel recognized that the case may not be concluded as Spelinspektionen holds the option to appeal the court’s ruling.

### Additional Fines for AML Failures

On the same day as Svenska Spel’s court victory, Spelinspektionen also fined three companies for failing to adhere to anti-money laundering (AML) regulations.

Betsson Nordic received a warning and a SEK6.5 million fine for AML deficiencies in Sweden. TSG Interactive, part of Flutter Entertainment, was fined SEK7 million, and Snabbare faced a SEK5.5 million sanction.

These fines are part of a series of actions this year by the regulator, which includes penalties imposed last week on several charity and political groups operating lotteries for failing to supervise contractors and for marketing violations.

Spelinspektionen also issued a SEK10 million fine to Kindred’s subsidiary Spooniker for AML breaches, while Videoslots was ordered to pay SEK12 million for not adequately preventing excessive gambling.

These enforcement actions, including the case against Svenska Spel, emphasize ongoing concerns about regulatory compliance within the Swedish gambling sector.

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