Swedish Gambling Regulator Challenges Court Ruling Favoring Svenska Spel
The Swedish gambling authority, Spelinspektionen, has officially filed an appeal against a court decision that overturned a SEK 100 million (€9 million) fine imposed on Svenska Spel’s digital division for regulatory failures.
This development occurred when Spelinspektionen submitted its appeal to the Court of Appeal earlier this week, arguing that the Administrative Court’s ruling in Linköping contradicts earlier judicial decisions.
The situation traces back to March 2024, when Spelinspektionen penalized Svenska Spel for violating their duty of care obligations as outlined in the 2019 Gambling Act. The regulator highlighted concerning shortcomings discovered during an investigation from October to December 2021, which included a lack of adequate protections for players vulnerable to gambling addiction. The investigation flagged ten players who suffered significant financial losses during this period.
However, in June of this year, Svenska Spel successfully contested the regulator’s decision, asserting that while the identified customers exhibited signs of problematic gambling, the regulator failed to prove that Svenska Spel neglected its duty of care to an extent warranting regulatory action.
Svenska Spel also criticized the perceived ambiguity surrounding the duty of care regulations, claiming that the imposed penalties were overly harsh given the alleged shortcomings.
Regulator’s Response to Court Ruling
In its new appeal, Spelinspektionen contended that the Administrative Court’s decision not only conflicts with past judgements but also misinterprets the clarity of the legal expectations for gambling operators in Sweden.
The regulator emphasized that the requirements for duty of care are well-defined, asserting that all licensed operators are obligated to implement proactive measures to safeguard players against gambling-related harm. They stressed the importance of constant monitoring and intervention as gambling patterns evolve.
Moreover, Spelinspektionen asserted that operators should actively limit gambling activities to mitigate the risks of addiction.
Insufficient Measures Taken by Svenska Spel
The regulator’s investigation noted that some of the flagged players experienced substantial losses, with individual amounts ranging between SEK 260,000 and SEK 600,000 over two months. Alarmingly, one player was notably younger, while others’ losses were considerable relative to their overall annual income.
Spelinspektionen criticized Svenska Spel for primarily relying on warnings and generic informational messages rather than implementing personalized and effective measures to curb excessive gambling behaviors. They highlighted a disparity in how the Administrative Court evaluated Svenska Spel in comparison to other operators that had faced sanctions.
Spelinspektionen’s appeal to the Court of Appeal reflects its commitment to ensuring robust regulatory standards in the gambling sector, preserving player safety as a top priority. As for Svenska Spel, the operator has yet to provide a response regarding the regulator’s recent appeal.