Betsson and SkillOnNet hit with seven-figure Swedish fines

Betsson and white label provider SkillOnNet have become the latest companies to be fined in Sweden after the regulator found both firms to be offering multiple bonuses to players and offering lotteries online without a licence.

Both companies have confirmed they will appeal the ruling in court.

In a review of Betsson’s Nordicbet site, the operator was found to be offering weekly rewards, cash prize draws, travel and free spins, bonuses, rewards, free games to loyal players.

“This has been going on for as long as four months into the new regulated market,” the regulator, Swedish Gambling Authority (SGA), noted.

The Betsson subsidiary, NGG Nordic, also organised lotteries online without a licence, the SGA said.

The operator was fined a total of SEK 19m (£1.6m).

In a statement released this morning, Betsson said it did not agree with SGA’s ruling and planned to appeal the fine.

The firm said it had made changes to its offering “immediately” following SGA clarifications, but added: “Betsson looks forward to having better clarity on this aspect of the law as it is necessary to complement the new legislation with guidelines and set precedent to reduce the risk of misinterpretations.

“The regulation on bonuses is vague and has been shown to leave much room for different interpretations.

“NGG Nordic Ltd intends to appeal the SGA’s decision as it is important that the courts provide guidance on how the bonus ban should be interpreted.”

In a bid to clarify its rules, the SGA noted: “The limitation on bonuses is contained in the law to reduce social and economic damages and problem gambling. A bonus is defined as a discount or similar financial incentive that is directly linked to the game.”

Operators can only offer one sign-up bonus to players.

SkillOnNet was also fined for operating lotteries without a licence, as well as offering various types of bonuses in the form of monthly rewards, free spins, cashback and VIP packages.

The firm was fined 14m SEK (£1.18m) for the transgressions across a variety of sites including redkings.com, playojo.com and slotsmagic.com.

A SkillOnNet spokesperson confirmed the firm would also be appealing its fine, saying in a statement: “Not only do we not share Spelinspektionen’s interpretation of the Gambling Act, but we also believe that the decision is disproportionately severe. We also think that the industry needs a clear interpretation of the law which we hope the court will insist upon.”

The spokesperson added: “We have had ongoing dialogue with the SGA since February in which we explained our reasoning for the types of offers we had. We felt our reasoning was solid, and justifiable within the wordings of the Gambling Act. Certain elements were also backed up by legal opinion.

“Unfortunately, Spelinspektionen has declined our repeated offers to meet with them to further explain our position and enter in a constructive dialog. Regardless, once we realised Spelinspektionen did not share our interpretations we made the required adjustments in a timely manner.

“Our experience in the other European jurisdictions in which we hold licenses has taught us that a collaborative relationship between the regulator and licensee, built on constructive and informative dialogue results in a healthy, compliant and equal playing field for the industry. We hope to see the same in Swedish market as it matures to become an established regulated market.”

The fines are the latest sanctions against operators by the SGA, which has now fined seven operators including Betway, Lottoland and Genesis Global, albeit generally for smaller amounts.

The regulator also stripped Global Gaming of its Swedish licence; a ruling the operator is currently appealing.

In a note sent out Wednesday, Swedish analyst firm Redeye said firms had generally struggled to adapt their platforms to Swedish regulations.

“More operators will likely lose their license in the coming year, most likely small operators,” Redeye said.

“It is not impossible that the Swedish Gambling Authority will state further examples and revoke additional licenses from larger/medium-size operators. However, this would be a gamble as it can jeopardize the whole license system.

“We believe that size and experience from regulations as well as strong brand awareness will be a competitive advantage on the Swedish market.”