Swedish Consumer Agency wins landmark advertising case against Global Gaming
Court rules Malta-headquartered firm breached moderation requirement
The Swedish Consumer Agency (KO) has won its landmark legal case against Global Gaming over the use of so-called “takeover” advertising for its Ninja Casino brand by its Elec Games subsidiary.
In a judgment released by the Swedish Patent’s and Market’s Court, the court confirmed that Global Gaming’s marketing was “contrary to the requirement of moderation” which is required under the Swedish Gambling Act.
Court chairman Alexander Ramsay said there was “a link” between gambling advertising and gambling-related harm, particularly in how marketing is perceived by at-risk gamblers.
KO requested that the court prohibit Global Gaming from marketing online casino and other games online through the use of takeover advertising including full screen pop-ups.
The court has also banned the company from making claims such as “The winnings in the bank account in five minutes – completely without registration”, “Clockwise the way to gold” and “PLAY NOW!” from being used.
Global Gaming CEO Tobias Fagerlund called the ruling a “step in the right direction” in clarifying the definition of moderate marketing.
“At the same time, I think it is sad that our brand is, in principle, taking sole responsibility for marketing messages that were then widely used in the industry,” Fagerlund said.
“It remains to be seen whether the legislator considers that the judgment goes far enough or chooses to further tighten the requirement of moderation through legislation,” Fagerlund added.
Global Gaming has said the judgment will not have any direct impact on the company’s operations but said its lawyers were reviewing the judgement with a view to a possible appeal.
KO launched its lawsuit against Global Gaming subsidiary Elec Games in October, following complaints about aggressive advertising by the operator.
Gunnar Wikström, legal counsel at KO, said the judgement sent a “clear signal” to the industry as to what constitutes moderation in marketing, something which previously has not existed due to the Swedish Gambling Authority’s reliance on legal precedent.
The judgement is Global Gaming’s second negative ruling in the space of two weeks following the loss of its latest appeal against the revocation of its Swedish licence by the SGA. The company has since pledged to apply for a review permit in the Administrative Court of Appeal.
In its latest set of financial results, Global Gaming revealed at 76% drop in its Q3 revenues to SEK60.3m.