Swedish Court Rejects Appeals from Gambling Operators

The Swedish Supreme Administrative Court has closed the chapter on several high-profile disputes involving penalties issued by the Swedish Gambling Authority (SGA). Requests to appeal fines imposed on Kindred Group, ComeOn Group, and Mr Green were rejected, confirming the penalties as final and binding.

Kindred Group’s subsidiary, Spooniker, faced scrutiny over a 2020 penalty for violating the Swedish Gambling Act by offering promotions in March 2019 that exceeded the limitations set by Swedish law. Operators in Sweden are permitted to provide bonuses only when customers first sign up.

The SGA initially imposed a SEK100 million (€8.7 million) fine, which was later reduced to SEK50 million by the Administrative Court in Jönköping and subsequently lowered again to SEK30 million by the Court of Appeal. Despite Kindred’s assertion that the promotions were merely “in-game mechanics” and not bonuses, the Supreme Court declined to consider further appeals, solidifying the SEK30 million fine.

Similar enforcement actions affected ComeOn Group, which operates four brands in Sweden: ComeOn Sweden, Hajper, Casinostugan, and Snabbare. The SGA imposed combined penalties of SEK165 million in 2021 for offering unauthorised bonuses and failing to fulfill its duty of care obligations.

Following appeals, these penalties were significantly reduced. For instance, ComeOn Sweden’s fine dropped from SEK35 million to SEK13 million, while penalties for other brands were similarly scaled down. Despite seeking further reductions, ComeOn Group’s appeals were denied by the Supreme Court, confirming the adjusted fines as final.

Another operator, Mr Green, also faced penalties from the SGA for breaches in anti-money laundering (AML) compliance and duty of care. Initially, the operator was fined SEK31.5 million. This was later reduced to SEK12 million for duty of care violations and SEK1.5 million for AML shortcomings by the Court of Appeal.

The Supreme Administrative Court’s decision to deny further appeals means these reduced fines are now definitive.

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In a separate case, the SGA took decisive action against Cosmogames for operating without the necessary licensing. The company provided online gambling services through several domains, including Spinarium.com and its variants, allowing Swedish customers to register accounts and make transactions in Swedish Krona.

These actions were deemed a violation of Sweden’s stringent gambling regulations. As a result, Cosmogames has been ordered to immediately cease operations within the country.

Source:

“Swedish court blocks appeals from Kindred, ComeOn and Mr Green“. Next.io. December 18, 2024.