The Swedish Gambling Authority (SGA) has banned CGG Entertainment after it found the operator was offering games to Swedish players without owning a licence.
Following reports to the SGA that Cyprus-based CGG Entertainment was supplying games via its website, cases.gg, to Swedish players without a licence, a regulatory case was opened.
During the probe, it was found the website was running lotteries offering prizes such as cars, shoes and jewellery.
Players could also purchase “mystery boxes” containing random content other prizes? but, if the players lost, they would lose their bet.
The website displayed text in Swedish when accessed via a Swedish IP address and also showed Swedish flags.
The regulator did note that it had carried out a hidden purchase test but it had not been completed.
The KSAalso said the study had not been able to ascertain whether Swedish players were prevented from registering and creating an account on cases.gg.
Despite a statement from CGG Entertainment insisting the company intended to “comply with Swedish legislation”and had “blocked all Swedish users from the platform, as well as card payments from Sweden”, a further regulatory check on 6 October found the website still contained Swedish text.
The October check also highlighted references on the site in Swedish about how to bypass the block using a VPN.
The SGA ruledCGG Entertainment had neglected to implement the appropriate measures to not market its games to Swedish consumers.
In its conclusion, the regulator said: “By directing its operations towards Sweden without a licence, CGG Entertainment Ltd has acted in violation of Chapter 3, Section 3 of the Gambling Act.
“Overall, the Swedish Gambling Authority assesses that the company’s operations are to be regarded as providing gambling in Sweden.
“CGG Entertainment Ltd does not have a licence to provide games in Sweden. The Swedish Gambling Authority therefore decides to prohibit CGG Entertainment Ltd from providing games in Sweden.
“The Swedish Gambling Authority considers that, in the interests of consumer protection, it is important that the decision is complied with immediately. The decision shall therefore apply immediately.”
In recent months, the SGA has continued to ban and fine offshore operators for offering their services to consumers without a licence.
In September, three suppliers were hit with a SEK700,000 (£56,120) combined fine for supplying their games to black market operators, while two operators were banned for illegally targeting Swedish players.
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Swedish Gambling Authority sanctions Cyprus-based firm CGG Entertainment for offering games in the market without the necessary licence
The post Swedish regulator bans offshore operator for targeting Swedish consumers first appeared on EGR Intel.