Sweden’s gambling regulatory body, Spelinspektionen, originally imposed a significant fine on Kindred Group in March 2020 for infractions involving unauthorized bonuses and lotteries. Initially, the penalty amount was a staggering SEK100 million, a responsibility placed on Kindred after inspections revealed discrepancies affecting multiple websites owned by the company.
Spelinspektionen’s regulations only permit Swedish licensees to provide sign-up bonuses to new customers, explicitly prohibiting any other types of promotional offers. Nevertheless, during examinations conducted in March 2019, Kindred’s platforms, including Unibet, Maria Casino, Storspelare, Bingo, and iGame websites, were found to be offering unauthorized bonuses. Among these violations was an online bingo loyalty scheme that Spelinspektionen identified as unapproved extra incentives.
Kindred countered these findings by arguing that the so-called bonuses were actually in-game mechanisms rather than promotional offers. This defense, however, did not hold as subsequent checks in May and June 2019 led to the discovery of further unauthorized offers, such as free spins, free online bingo games, and free bets.
Moreover, Kindred had implemented rewards for poker play, which included prize draws. According to Spelinspektionen, Kindred did not possess the necessary license to offer these types of rewards since they were classified under lottery games. The culmination of these breaches resulted in Spelinspektionen’s decision to impose the heavy SEK100 million penalty and an official warning to the operator.
Responding to the regulatory action, Kindred appealed the decision to the Administrative Court in Linköping. In July 2021, the court ruled to reduce the fine to SEK50 million, agreeing with Spelinspektionen’s assessment that there were serious bonus-related violations. Nonetheless, the court suggested that a “medium-high penalty fee” was more suitable given the specifics of the case. Fines in Sweden hinge on an operator’s turnover and seriousness of the infractions, which had initially led to Spelinspektionen’s decision to levy a “high penalty fee” against Kindred.
In a new development, the Administrative Court in Linköping has further reduced the penalty against Kindred, bringing the total fine to SEK30 million.
. Following the court’s updated decision, Kindred reiterated its viewpoint that the regulations surrounding bonuses were ambiguous and subject to interpretation. Given this vagueness, Kindred maintained that the sanction fee should be lowered.
Kindred also highlighted that it had adjusted its offerings to comply with regulatory requirements after the initial contact from Spelinspektionen. Despite this, Spelinspektionen has yet to provide any comments regarding the further reduced penalty imposed by the court.
The initial action by Spelinspektionen came in the context of a wider regulatory crackdown as Sweden tightened its gambling laws following the re-regulation of the market on January 1, 2019. The move to restrict bonuses was aimed at tackling excessive gambling and protecting customers from aggressive marketing. The case of Kindred, a major player in the online gambling industry with a substantial presence in multiple markets globally, attracted considerable attention as it was one of the largest fines imposed since Sweden’s market reform.
Throughout the period in question, Kindred Group had maintained that its actions were within the bounds of what was permissible, emphasizing a belief that there was a lack of clear guidance on bonus offerings. This contention was part of their broader legal strategy, a defense used to mitigate the penalty fees initially demanded by Spelinspektionen.
From a broader industry perspective, the outcome of the Kindred case is likely to serve as a precedent for how bonus-related infractions are handled by Swedish authorities in the future. The reduced penalty also signals to operators that while Sweden remains vigilant in enforcing its gambling regulations, there may be some flexibility if the rules are deemed ambiguous or if compliance actions are promptly taken following regulatory feedback.
Going forward, gaming operators in Sweden and those eyeing entry into this regulated market are expected to closely monitor such rulings. They must ensure strict adherence to the Bonus Regulations enforced by Spelinspektionen to avoid legal repercussions and hefty fines. The decision concerning Kindred represents a significant chapter in the ongoing regulatory narrative in Sweden’s evolving gambling landscape.
