Court rejects XC Gaming appeal over Swedish fine

XC Gaming has changed ownership since the breaches.
XC Gaming has changed ownership since the breaches.

The administrative court has rejected the operator’s appeal against a €196,000 fine for breaches of bonus rules.

Sweden.- XC Gaming, the operator behind the brands Frankfred and Klirr, has lost its appeal against a SEK5m (€196,000) fine issued by the Swedish gambling regulator Spelinspektionen. It received the penalty last year for breaching rules that allow operators to only give each payer on bonus.

Spelinspektionen found that the operator had given one player a series of at least six bonuses totalling SEK21,000 (€2,058) after sign up. Under Sweden’s rules, operators can only give players one bonus and it must be offered when they sign up.

The breaches occurred under XC Gaming’s previous ownership, and Spelinspektionen noted that The Mill Adventure, which acquired the operator in March 2020, had taken measures to improve its duty of care.

The regulator discovered the breaches when it asked the operator for information about its highest-depositing customer. It has asked extra questions to the operator due to concerns about its size and ability to meet requirements.

The response revealed that the operator had given the player bonuses ranging from SEK1,500 to SEK7,500, while the player also mentioned receiving a bottle of champagne.

XC Gaming appealed against the penalty, but the administrative court (Förvaltningsrätten) found that the failings were “very serious” and that as such the fine was proportionate.

Spelinspektionen said: “In total, the player has thus received the least SEK 21,000 and a number of other gifts from the company during the period under review period.”

It added: “The Mill Adventure wants to guarantee that the company now fully complies with the Gaming Act and announces that special measures have been taken to ensure that the provisions on duty of care and gaming liability are complied with.”

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