Swedish court confirms penalty fee for provision of gambling software to unlicensed operators
The Swedish gambling regulator’s action has been upheld, but the fine has been reduced.
Sweden. The Administrative Court has found in favour of the Swedish gambling regulator Spelinspektionen in its enforcement action against Hacksaw Studios AB. The regulator issued the provider a warning and penalty in May 2024 for providing gaming software to two operators who lacked Swedish gaming licences.
The requirement for gaming software providers to hold a local licence was introduced into the Swedish Gambling Act on July 1 2023. The aim was to increase channelling and counteract illegal gambling. The requirement applies to all those who manufacture, provide, install and/or modify gaming software used in commercial online gambling.
As part of the licence conditions, providers are prohibited from providing their software or games to gambling operators whose products are available in Sweden but do not have a Swedish gaming licence.
Penalty reduced
Hacksaw appealed against the punishment last year. The Administrative Court has now found in favour of the regulator, but it has reduced the size of the original SEK2.6m (€226,350) sanction fee that was imposed.
The Court agreed with the Gambling Authority’s assessment that Hacksaw Studios AB had violated the Gambling Act by providing gaming software to operators without the necessary licence to provide games on the Swedish gambling market. Regarding the size of the penalty, the court based its decision on the net turnover reported by Hacksaw Studios AB and also considered that there were certain mitigating circumstances.
Meanwhile, Spelinspektionen has begun a preliminary study into charitable gaming in Sweden. It intends to obtain an overall picture of the current situation and to identify potential challenges. The study will also result in proposals for possible measures for how the regulations and practices can be developed within the framework of existing legislation.
The regulator notes that before the reregulation of the gaming market on January 1 2019, which introduced regulated online gambling, no detailed investigation was carried out into the need for changes for those providing gaming for public benefit purposes. It recognises that the conditions have changed over time and there is a need to consider whether the regulatory framework should now be developed.
