Swedish regulator hits Yggdrasil with fine over supplying unlicensed operator

The Swedish Gambling Authority (SGA) has handed Yggdrasil a SEK300,000 (£22,421) fine after its games were found on an unlicensed operator’s website earlier this year.

The regulator revealed that it had uncovered the offence back in January while investigating a series of illegal operators in the Scandinavian country.

On 16 January, having investigated a number of websites, the SGA discovered that Yggdrasil had been providing games to an operator that had been prohibited from operating in Sweden in since 8 October 2021.

Upon the discovery, the SGA began a supervision of Yggdrasil, with the supplier then taking corrective action on 23 January to cut ties with the unlicensed firm.

Yggdrasil claimed that its content had appeared on the black-market operator’s site due to a “breach of contract” between a retailer and itself.

While the SGA noted Yggdrasil’s engagement and speed in removing its content from the illegal operator’s site, the regulator said the seriousness of the offence meant a punishment was warranted.

When determining a penalty, the SGA can hand out fines ranging from a minimum of SEK5,000 to a maximum of 10% of a company’s turnover.

In this case, the SGA said Yggdrasil’s net sales for 2023 amounted to €514,566, corresponding to SEK5.8m.

The regulator therefore noted the fine could be no higher than SEK580,000.

The SGA said that given the level of cooperation from Yggdrasil, it decided to set the fine at SEK300,000, while also issuing the supplier with a formal warning.

Yggdrasil’s fine comes as part of new powers held by the SGA since July 2023 when B2B licensing requirements were introduction in Sweden.

EGR has approached Yggdrasil for comment.