Betway and Mandalorian Technologies hit with six-figure Swedish fines
Operators fined for allegedly offering customer bonuses in violation of Swedish law
Betway and Mandalorian Technologies have been issued with fines totalling SEK14m (£1.13m) by the Swedish Gambling Authority for allegedly offering Swedish customers bonuses in violation of Swedish law.
Betway was issued with a warning and a fine of SEK5m (£0.41m), while fellow online casino operator Mandalorian Technologies limited was issued with a similar warning but received a higher fine of SEK9m (£0.73m)
Under Swedish law a bonus can only be offered on initial registration with a licensed operator, with repeated bonuses prohibited. Bonuses are defined by the regulator as a “discount or similar financial incentive that is directly linked to the game”. If a licence holder is found to be violating these rules, they are liable for a fine and or could have their Swedish licence revoked.
Betway received its fine after Swedish regulators discovered in March the operator was offering repeated bonuses on deposit, which included weekly free plays and recurring free spins.
When initially challenged about these offers Betway said it felt it conformed to the rules surrounding the use of bonuses by operators in the Swedish market. To ensure compliance with Swedish regulations, recurring bonuses and free spin offers were discontinued by the operator.
A spokesperson for Betway said it was aware of the fine and was currently conducting an investigation of the matter.
Mandalorian received its fine after Swedish regulators established it was offering cashback offers to players until 11 February, offers which the operator said “did not constitute an economic incentive to gamble”. Mandalorian’s stance on this issue was reinforced by the opinion of external legal advisers, who the company said had analysed the legislation.
Upon clarification from the regulator that this opinion differed from its own, Mandalorian attempted to explain the analysis, while also discontinuing the offers to ensure full compliance with regulations.
Ulrika Wallin, CMO of Mandalorian Technologies said the company “strives to be the best-in-class in terms of regulatory compliance and welcomes decisive action from the SGA”.
“This decision has only just been received, and the company’s lawyers are currently evaluating how it will respond to that,” Wallin added.
The Swedish regulator issued a letter to all licensees on 19 February advising them it had commenced regulation of this area, reminding them of their responsibilities as licence holders.