Swedish Gambling Authority to appeal against Zimpler’s reprieve
Swedish regulator claims payment solutions provider knew it was promoting illegal gambling and has challenged decision from Administrative Court absolving the firm of wrongdoing
The Swedish Gambling Authority (SGA) is appealing the Administrative Court’s decision to throw out the injunction against payments solutions provider Zimpler.
In July 2023, the SGA told Zimpler to stop all services to unlicensed operators by the end of that month or face a SEK25m fine (£1.9m) – to which the company appealed the decision as it felt the injunction was “misdirected”.
Despite the appeal, Zimpler complied with the ruling in May that year and said the process would begin in Q2 and be completed by Q3 2023.
Last month it was decided by the Administrative Court that the Swedish regulator lacked sufficient grounds when it came to issuing an injunction against the firm, stating that Zimpler was not aware gambling companies were providing games without a licence.
However, the SGA has fired back and argued the firm did indeed promote illegal gambling to Swedish players by entering into agreements with foreign gambling companies and providing them with payment services.
In its challenge, the SGA noted how traffic from Sweden to websites decreased once Zimpler’s payment option was no longer an option – proof that the Swedish market was targeted.
It was also noted that by using Zimpler and bankID, which is only used in the Swedish market, illegal sites were actively attracting players from the country. In some cases, Zimpler was the only deposit method of choice which prevents anyone other than Swedes to play.
The SGA also pointed out the payments provider had stated in its internal reports that the gambling companies it worked with were active in Sweden.
Highlighting that it was irrelevant whether Zimpler’s service was specifically aimed at gambling companies, the SGA said it must be considered clear that the firm was promoting illegal gambling.
The SGA’s conclusion stated: “It is clear that the legislator’s intention is, and has always been, that the mediation of stakes and winnings to gambling companies that lack the necessary Swedish licence as a starting point is to be regarded as promoting illegal gambling.
“It is also clear that payment orders where the payment intermediary has knowledge, or at least is in bad faith, that the payments relate to games with a gambling company that illegally targets Sweden do not constitute so-called normal payment orders that are exempt from the ban.
“The legislator has thus not intended that it is only paid services that are explicitly aimed at gambling companies that can constitute an unauthorised promotion.”