Swedish Online Gambling Authority Flexes Its Muscle!

Given its history of neutrality and the extended period allotted to bringing its finalised online gambling regulation policy to the public domain, Sweden was considered by many a bit of a slumbering watchdog.

Even when the Swedish Gaming Authority (locally known as Spelinspektionen) issued 66 operators advance warning of its intent to fine them up to 10% of their turnover should they not comply fully with its requirements many were slow to act.

✓Ninja Casino Can’t Hide In The Shadows

To date, the most secure regulated markets have been considered the United Kingdom and Malta as the UK Gambling Commission and Malta Gambling Authority have earned their respective no-nonsense reputations. The Swedish Gambling Authority (SGA) is set to join the ranks of its illustrious peers with a series of incredibly effective actions against some of its licensees.

Ninja Casino, a brand under the management of Stockholm-listed Global Gaming AB, was the first to face the power of the Commission when its licence was unceremoniously suspended! The reasons were simple, Ninja Casino didn’t meet SGA’s standards for player protection, anti-money laundering and contravened a cornerstone of the Swedish gambling regulation by repeatedly offering players bonuses as incentives.

Sweden clearly outlined that players must gamble because they want to, not to benefit from the promise of an incentive so this was an unforced error by the brand.

✓Betting; Not The Odds On Favourite

While Ninja Casino suffered a knockout blow the SGA took aim at a broader base of contrarians in the online betting space.

Several operators were fined for offering bets on games where the players were under the age of 18 years old. The SGA feels this would place the underage fans of these players at risk of being influenced by gambling ads.

In their official press release the noted the following companies and associated fines:

• Betfair International plc were fined SEK 5,500,000 (€522,290)
• Bethard Group Limited were fined SEK 2,500,000 (€237,404)
• Casinostugan Ltd were fined SEK 3,500,000 (€332,368)
• ElectraWorks Limited were fined SEK 5,500,000 (€522,290)
• Hillside (Sports) ENC were fined SEK 10,000,000 (€949,624)
• Polar Limited were fined SEK 700,000 (€66,477)
• TSG Interactive PLC were fined SEK 10,000,000 (€949,624)
• Zecure Gaming Limited were fined SEK 3,500,000 (€332,368)

Not all companies are simply taking their licks and getting back to business however, GiG have suspended all sports betting operations in Sweden claiming the rules are “unclear”.

GiG CEO Reed stated:

“We believe that the current rules for online sports betting are too open to interpretation, leaving uncertainty around whether an operator is in fact compliant or not. The recent fines issued by the Swedish regulator to GiG and multiple other peers demonstrate this overall uncertainty in the market.”

He went on to further advise the Swedish Gaming Authority to suspend all online sports betting in Sweden for all their competitors as well until clarity on the applicable regulations was provided.

✓SGA Leads Global Cooperation Drive

The Swedish Gaming Authority has also been working to create greater synergy with major gambling regulatory bodies such as the UK Gambling Commission (UKGC), the Malta Gaming Authority (MGA) and the Gibraltar Gaming Division (GGD).

Camilla Rosenberg, Director General of Spelinspektionen clarifies the value of these partnerships:

“Some of the companies that have received a Swedish license also have technical equipment and a license in Gibraltar” ... “By opening the communication channels between the authorities, we become stronger in our supervisory activities. This is the beginning of broad and long-term cooperation."

By entering into a memorandum-of-understanding (MoU) the signatories agree to provide one another with operational insights and assistance as well as information on policy initiatives. The primary aim being to create a fair global market for consumers, standardised consumer protection and reduce gambling associated crime.

✓Shape Up Or Ship Out

As opening salvo this has been an effective one. Sweden has caught many operators off-guard and their message is clear; either toe the line or face heavy penalties and even expulsion from the territory. Your move.