Svenska Spel fined for unlicensed slot machine ‘misunderstanding’
Svenska Spel Faces SEK 2M Penalty from Spelinspektionen for Licensing Noncompliance
In a significant regulatory development, Svenska Spel has been imposed a fine of SEK 2 million (approximately £147,856, €175,422, or $194,774) by the Swedish gambling authority, Spelinspektionen. The penalty stems from the relocation of slot machines to locations where the company lacked the requisite operating licenses. In its defense, Svenska Spel claimed this situation arose from an “administrative misunderstanding.”
Details of the Infraction
On September 3, 2023, Spelinspektionen revealed that Svenska Spel’s slot machines were licensed solely to operate within specific bingo venues in Kinna and Hagfors since December 2018. However, the operator moved the machines to Skene Hagfors, a location outside of their licensed jurisdiction.
When contacted by the regulator in early September 2023, Svenska Spel promptly submitted a request for a change of address. However, recent legislative modifications enacted in July 2023 necessitated additional documentation that the operator failed to provide.
After Svenska Spel rectified its operations and removed the unlicensed machines, Spelinspektionen opted for a reduced fine coupled with a formal warning.
“We deeply regret this situation. Our intent was to adhere to regulatory standards, but an administrative misunderstanding led to this oversight,” stated Thomas Engström, Operations Sales Manager at Svenska Spel. “We are committed to ensuring that such issues do not resurface in the future.”
A History of Compliance Issues
This isn’t the first time Svenska Spel has come under scrutiny. In March 2023, the operator faced a far more substantial fine of SEK 100 million (approximately $9.75 million) for failing to meet its player duty of care obligations. This warning arose from incidents occurring between October and December 2021, wherein the operator did not take adequate steps to mitigate the risky behaviors of ten high-spending players.
Danish Regulator’s Action Against Illegal Gambling Sites
Meanwhile, significant regulatory action continues in Denmark, where Spillemyndigheden, the nation’s gambling authority, blocked 79 illegal gambling websites on August 5, 2023. This action was made possible through a recent court ruling.
Spillemyndigheden emphasized that many of the blocked sites actively targeted children and young individuals, underscoring the regulator’s commitment to safeguarding vulnerable populations.
In Denmark, such regulatory measures require court endorsement, extending the timeline for enforcement. Earlier in the year, an additional 83 sites were blocked, contributing to a total of 162 blocked sites in 2024 alone. Since 2012, the cumulative total of blocked gambling websites has reached 438.
Conclusion
As the gambling landscape evolves, the necessity for compliance with regulatory frameworks becomes ever more critical. Operators like Svenska Spel must adopt robust internal processes to navigate changing regulations effectively. By prioritizing accountability and adhering to responsible gambling practices, the industry can work towards a sustainable and compliant future.
