Spelinspektionen, Sweden’s gambling regulator announced its decision to impose sanctions on gaming operators Spooniker and AB Trav och Galopp (ATG) for breaching the temporary coronavirus-related restrictions on deposits, imposed this summer. The two operators were penalized for their failure to detect loopholes that enabled players from the country to bypass Spelinspektionen’s deposit restrictions.
The regulatory entity conducted an inspection this summer that aimed to ensure Swedish licensees comply with the weekly deposit cap of SEK5,000. When asked how they ensured compliance with the restrictions, the operators said they required all customers to set deposit limits they are comfortable with. Registrants who selected limits that exceeded SEK5,000 were denied access to the casino games. They were allowed to use the operators’ sports betting products only.
According to the regulator, this approach is inefficient because players could easily circumvent the restrictions by setting up higher deposit limits, funding their accounts, and then lowering their limits again. ATG responded there were fewer than 100 customers who raised their limits and deposited before lowering them.
The operator told Spelinspektionen it watches closely for signs of gambling addiction, blocking players who repeatedly change their deposit limits without justification. Both ATG and Spooniker stressed the restrictions concerned more the individual deposit limits for the casino players rather than the overall amount deposited into a given account.
The Swedish regulator directed their attention to a section of the legislation that says gambling companies are obliged to make sure the stipulated limits cannot be exceeded, so that players were unable to spend over SEK5,000 per week on casino-related products.
Operators to Pay SEK1 Million for Each Week the Loophole Remains in Place
The fact that ATG has suspended the accounts of some of its customers who circumvented the deposit restrictions in the above-specified manner does not negate the operator’s failure to enforce the temporary player-protection measure, the regulator said. Spelinspektionen does not consider this a serious violation that calls for revocation of the operators’ permits. However, the matter is not trivial, either, which is why the regulatory body decided to fine the two licensees.
Spooniker and ATG were ordered to instantly close the loophole. They will have to pay SEK1 million for each week it remains in place, counted three weeks from the announcement of Spelinspektionen’s ruling. The size of the fines depends on the severity of the violations as well as on the operators’ turnover. In this case, both licensees were fined with the same amount since they have similar turnover rates.
Spelinspektionen introduced the temporary deposit restrictions in July. The initial intentions were for the cap to remain in place until the end of 2020 but it was later proposed to extend it until June 2021. While some licensees like ATG spoke in favor of the deposit restrictions, the Swedish gambling association Branscheforenigen för Onlinespel (BOS) insisted on the withdrawal of the measures.
