Gambling Regulators Strive for Industry Legitimacy

Maltese casino operator, Bayton Limited, violated their licence terms with Spelinspektionen by leaving board changes from 2019 unreported for more than two years. The Swedish gambling inspectorate discovered the omission during a routine inspection. Bayton operates the popular online platforms JackpotCity, Ruby Fortune, and Spin City.

Spelinspektionen advised that the failure, which relates to administrative issues according to the operator, will cost them SEK 35,000. Bayton accepted the penalty and stated that they took the necessary steps to avoid such failures in the future.

 Communication Breakdown

Bayton is a licensed operator and provides online gambling services to players across the jurisdiction. They hold licensing with the revered Maltese Gaming Authority, as well as the Kahnawake Gaming Commission. Established over two decades ago, the group operates 15 well-known online casinos, including those available to Swedish punters. Bayton is not an inexperienced igaming provider.

Swedish gambling licence regulations stipulate its licensees must inform the regulator of any changes linked to senior positions within the company or board. Companies have 14 days from the date of the change to notify the inspectorate of the relevant changes.

Commenting on the lack of communication, Spelinspektionen said:

“With regard to the obligation to report, it is stated in the preparatory work for the Gaming Act that the requirement on suitability could easily be circumvented by having people replaced as soon as a gaming company has received its licence. It is therefore important that the gaming authority receives knowledge of when changes occur in terms of people in the ownership circle, the board and management.”

In response to the penalty notice, Bayton admitted to internal administrative shortcomings and committed to compliance through improved operations.

 Two Years After the Fact

Spelinspektionen uncovered the regulatory breach in July 2021 while conducting an inspection. They discovered that one board member resigned during April 2019 and Bayton appointed a new member at the same time. In Bayton’s view, they were unaware of the communication breakdown until Spelinspektionen pointed it out. The company supposedly prepared the necessary documentation and ascribes the mishap to ‘an internal oversight’ as they did not send the document.

The operator accepted the penalty, and they pressed on the importance of following regulatory protocols with all their relevant teams. Bayton conducted a review and started internal routines to better their operational efficacy and avoid slip-ups going forward. This comes a year after the operator received instructions for the inspectorate to improve Know Your Customer identification processes.

According to Bayton, the new member appointed in 2019 is a trusted and vetted industry player who previously sat on the board of Whitfield Management, owner of the Channel Island fiduciary service Bellerive Trust.

 Standard Practice for a Legitimate Industry

The Swedish regulator stipulates communication of such changes as regulators strive for licensees with upstanding employees and this includes every individual in the company. Gambling businesses have long-standing stigmas they chip away at, and part of ensuring a legitimate casino business includes proper background checks.

Licence vetting incorporates these too, specifically focusing on upper management. As Spelinspektionen pointed out, if it was not standard procedure for operators to notify regulators of such changes, shady businesses could change their board and directors following a licence approval. Because Bayton violated this law, and their 2020 turnover of SEK 14.6m, Spelinspektionen categorised the transgression as less serious and issued a small fine of SEK35,000.