Videoslots hit with injunction over Swedish deposit limit loophole

Videoslots hit with injunction over Swedish deposit limit loophole

The gaming operator allowed players to circumvent online casino deposit limits by reversing withdrawals.

Sweden.- Videoslots has been slapped with an injunction by the Swedish Gambling Authority (Spelinspektionen) for breaching Sweden’s temporary online casino deposit limits.

The regulator found that Videoslots players could use reverse withdrawals to circumvent the country’s SEK5,000 (€476) weekly deposit cap.

Players were able to deposit more than the permitted limit by cancelling withdrawal requests up to two months old. 

Spelinspektionen has issued an injunction ordering the operator to remove the feature.

Another loophole in Sweden’s deposit limits for online casinos

Sweden introduced temporary deposit limits for online casino products in July due to concerns that there could be an increase in problem gaming due to the Covid-19 pandemic. The limits have since been extended until at least the middle of 2021.

The regulator had requested in July that Videoslots demonstrate how it was implementing Sweden’s temporary deposit limits.

The operator showed that players could only log in after setting a deposit limit of SEK5,000 or less per week. This was supported by a certification report from an accredited testing lab.

However, Videoslots initially avoided answering a question about reverse withdrawals. When it did respond, Spelinspektionen found that players could effectively deposit more than SEK5,000 in a week by reversing previous withdrawals up to as much as two months old. 

Videoslots said the feature had been introduced at players’ request before the implementation of the temporary deposit limits. However, the regulator said that did not change the fact that it clearly allowed players to circumvent the current law.

It said: “The regulations state that the upper limit for deposits at commercial online gaming amounts is set at a maximum of SEK5,000 per week and that the licensee is obliged to ensure that the limit cannot be exceeded.”

It also said Videoslots’ deposit cap was little more than a warning to players.

It said: “With Videoslots’ interpretation of the provision, it would be sufficient for a licensee to state to players, ‘You have a deposit limit of SEK5,000 per week for commercial online gaming,’ no matter how much money can be deposited and used for online gaming in practice.

“Spelinspektionen does not share in that assessment.”

Videoslots has said that it is considering legal action against the Swedish state, arguing that the country’s temporary deposit cap is contrary to EU law.

Spelinspektionen has said that the freedom to offer services within the EU may be restricted in the public interest, provided that measures are proportional.

It’s the third time that Spelinspektionen has taken action against igaming operators for using loopholes to allow players to breach Sweden’s deposit limits. 

In December, it fined Kindred’s sportsbook brand Spooniker and former racing monopoly AB Trav och Gallop (ATG) for using a different loophole. 

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