In a significant turn of events, the Swedish gambling regulator Spelinspektionen has imposed a hefty penalty fee amounting to SEK100 million on the national gambling operator Svenska Spel. This action reflects the regulator’s commitment to enforcing the duty of care mandated by the Swedish Gambling Act of 2019. The assessment, which led to this penalty, was conducted over a period from October to December 2021 and scrutinized the operator’s protocols in dealing with gamblers at risk, particularly focusing on the ten customers who encountered the steepest financial losses during this interval.
Spelinspektionen concluded that Svenska Spel did not take adequate steps to shield these players from compulsive gambling behavior, despite indications that necessitated action to mitigate their engagement in gambling activities. Reacting to Spelinspektionen’s verdict, Fredrik Wastenson, the CEO of Svenska Spel’s digital division, expressed that the company takes the regulator’s decision seriously. Wastenson acknowledged the inspection period and assured that many of the regulator’s recommendations had already been implemented, underlining Svenska Spel’s lofty ambitions concerning gaming responsibilities.
Nevertheless, Svenska Spel underscored the need for more explicit guidance from the regulator on compliance with the Gambling Act. While agreeing to the fine, the operator disputed the regulator’s interpretation of its duties under the law. Wastenson detailed the company’s efforts to better align its practices with both the letter and the spirit of the law as it gained clarity over time. Svenska Spel has made moves to strengthen its responsible gambling initiatives, including verification procedures to assess the income of bettors placing large wagers as well as an increase in the number of proactive welfare checks.
The operator utilizes a comprehensive framework to evaluate the risk of gambling-related harm, considering a blend of scientifically backed research, the efficacy of its measures, and legislative requirements. However, according to Svenska Spel, Spelinspektionen overstepped in its decision by advancing an interpretation of regulations not directly supported by existing legal provisions. Wastenson signaled the potential for an appeal against the ruling.
The announcement of the fine arrives amidst Svenska Spel’s financial disclosures revealing a steady performance over the past year. Despite a slight downturn, the company posted a revenue of SEK8.03 billion for the fiscal year ending on December 31, 2023. Credit for this resilience amid challenging economic times and a stagnant gaming sector goes to the interim CEO, Erik Strand, who touted the ‘stable’ nature of the company’s earnings.
Svenska Spel has faced its share of operational decisions, notably the closing of the Casino Cosmopol venues in Gothenburg and Malmö, citing poor profitability. Strands optimistically pointed to growth in other segments and the ability to forge sustainable gaming experiences as the cornerstone for Svenska Spel’s trajectory into 2024. The organization is soon to welcome Anna Johnson as its new CEO, while Erik Strand will continue serving as interim CEO until her arrival in June.
The day’s revelations included another fine issued by Spelinspektionen, this time targeting the slots developer Yggdrasil, which faces a SEK300,000 penalty for providing gaming software to an unlicensed operator within Sweden. This contravenes the requirements set out in chapter 11, section 6 of the Swedish Gambling Act, which necessitates that all game software licensees refrain from technical support to non-licensed entities. Yggdrasil responded promptly to rectify the issue and stressed its adherence to the regulations moving forward, a point acknowledged yet expected by the regulator.
The fines imposed on both Svenska Spel and Yggdrasil underline Spelinspektionen’s commitment to rigorous enforcement of Sweden’s gambling regulations, ensuring that gambling operators adhere to the highest standards of integrity and player protection.
