The payment provider has launched an appeal against the Swedish gambling regulator’s order.
Sweden.- The payment provider Zimpler has appealed against an order to stop processing payments for unlicensed gambling operators in Sweden. The Swedish gambling regulator Spelinspektionen had made the order earlier this month, warning that it would fine Zimpler up to SEK 25m (€2.2m) if it failed to comply.
The regulator said Zimpler, which is authorised by the Swedish finance watchdog, Finansinspektionen, had been breaching the rules for transactions permitted via the national banking electronic identification service BankID by allowing payments to be made to unlicensed operators. The regulator says it received an anonymous tip-off alerting it to the breaches.
Spelinspektionen said it had been told that the provider had worked closely with unlicensed gambling operators. It gave the company until July 31 to comply with its order or face possible fines.
Zimpler says that it had already announced in May that it would end its business relationships with unlicensed operators and that it will complete this process in the third quarter. It said that it would aim to speed the process up due to the July 31 deadline imposed by the regulator.
However, it says it also intends to make a formal appeal because it believed the regulator’s decision to be “misdirected” and to have potentially far-reaching consequences that could negatively impact its business. It raised several legal questions including on whether it could be considered illegal to provide services to an unlicensed gambling company.
Zimpler also says that it had proposed legislative changes to tackle unlicensed gambling sites, including B2B licences for payment providers and IP address blocking to stop Swedish consumers from accessing games from unlicensed companies.
Zimpler CEO Johan Strand said: “Zimpler supports Spelinspektionen’s mission to strengthen the Swedish licensing system and consumer protection in the igaming market. We want to promote responsibility and compliance in the gaming industry and have for a long time invested in product development in this area.”
He added: “The appeal is also a measure to ensure legal certainty in companies’ relations with the authorities. Companies must be able to plan and conduct their operations with predictable application of laws and regulations. It is a fundamental principle – both in Sweden and within the EU.”