Swedish gambling company Svenska Spel faces a fine of €8.7 million due to inadequate player protection measures.
The Swedish Gambling Enforcement Agency, Spelinspektionen, has slapped a SEK 100 million (roughly EUR 8.7 million) penalty on operator Svenska Spel, the digital division of the state-owned Swedish gaming corporation. The fine stems from recurring infractions of player protection regulations.
Inadequate Protection against Compulsive Gambling
In a statement released by Spelinspektionen [Link in Swedish], the punishment is a consequence of an examination carried out between October and December 2021. The focus was on Svenska Spel's interactions with ten clients who recorded the highest losses throughout this period.
The Spelinspektionen found that Svenska Spel had neglected to enforce the necessary safeguards to protect gamblers from excessive wagering. The operator failed to provide aid to customers in limiting their betting, despite evident need for assistance. This failure is consistent with the 2019 Gaming Act's requirements.
The Swedish Gaming Act [Link in English], as per Section 2.8, posits that license holders are obligated to protect their customers from excessive betting. This necessitates close monitoring of players and a duty to help reduce gambling when warranted. License holders hold a responsibility towards their clientele.
Svenska Spel Takes Action
Svenska Spel has acknowledged the sanction, with CEO Fredrik Wastenson [Link to quote in iGamingBusiness] expressing regret and acknowledging that appropriate modifications have already been implemented by the company.
Svenska Spel has since restructured its player protection measures. High-stakes gamblers are now required to furnish proof of income. Moreover, the company now offers its customers a complimentary license for the blockage software Gamban.
However, the fine isn't Svenska Spel's first transgression. In early 2023, the Swedish Online Gaming Association lodged a complaint against the operator, alleging that its gambling marketing breached established guidelines.
Spelinspektionen Punishes Another Gambling Operator
Besides fining Svenska Spel, Spelinspektionen also penalized operator Yggdrasil with a SEK 300,000 (around EUR 26,000) fine and a warning. Yggdrasil, a gaming software developer, is accused of collaborating with an unlicensed Swedish gaming provider.
The investigation commenced in January, when authorities discovered several unlicensed providers' websites. Yggdrasil's involvement rapidly came to light. The company cites a breach of contract by a partner as the reason for the transgression, yet the fine remains in effect, as per Spelinspektionen.
Challenging Times for Svenska Spel
The SEK 100 million penalty comes at a crucial time for Svenska Spel. The annual report of the gaming corporation reveals diminished profits in 2023, in comparison to 2022. Revenues amounted to 8.03 billion SEK (approximately 700 million euros) in 2023.
Given the present troubles, these figures are considered satisfactory. Factors like the gaming market's lack of growth and larger economic concerns are taken into account.
Recently, Svenska Spel announced the closure of its casinos in Gothenburg and Malmo due to unprofitability. Additionally, the Swedish government is mulling over higher gambling taxes for providers.
It remains to be seen how the fine and the challenges will impact Svenska Spel's future.
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In light of strict online gambling regulations in Germany, German players might want to reconsider their choice of online casinos, considering this incident with Svenska Spel. Despite being a state-owned Swedish gaming corporation, Svenska Spel was heavily fined for failing to provide adequate protection against compulsive gambling to its highest-loss clients, as per Swedish gaming laws.
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