Swedish Gambling Authority fines Svenska Spel for responsible gambling failures

Lea Hogg March 27, 2024

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Swedish Gambling Authority fines Svenska Spel for responsible gambling failures

The Swedish Gambling Authority (SGA) has imposed a significant fine of SEK100 million (€8.7 million) on the state-owned gambling operator Svenska Spel for not fulfilling its responsible gambling obligations. An audit revealed that Svenska Spel inadequately protected customers showing signs of excessive gambling, despite the company’s claims of taking gambling problems seriously.

Audit findings: call for action

During the SGA’s review, which began in December 2021, it was discovered that all 10 of the most money-losing customers displayed excessive gambling behaviour. Svenska Spel had categorized nine of these customers as high-risk, yet failed to implement effective protective measures.?The customers continued to gamble excessively, even after receiving safer gambling messages, which the SGA deemed insufficient.

Svenska Spel’s introduction of deposit limits and welfare calls to at-risk customers were also criticized for being either too high or too late to prevent gambling-related harm effectively. The SGA concluded that Svenska Spel did not take adequate steps to assist customers in reducing their gambling when necessary.

In response, Svenska Spel stated that it has been adapting its approach to gambling responsibility, incorporating legal changes and new insights. The company has since introduced additional checks for customers setting high gambling limits and extra protection measures for young customers aged 18-19.

The SGA’s decision to fine Svenska Spel serves as a reminder of the importance of responsible gambling practices and the need for operators to actively protect their customers from potential harm. Svenska Spel is now considering whether to appeal the decision.

Changes in regulation in Sweden

The Swedish government is set to introduce a new bill in April 2024, designed to increase consumer protections in gambling. The proposed law, submitted to the Riksdag (the country’s parliament), aims to combat gambling-related crime and protect consumers, according to Spelinspektionen, Sweden’s gambling regulator.

Under the new law, penalty fees will be increased for gambling companies that violate the Money Laundering Act. This is a significant change as currently, penalties for contraventions of the Money Laundering Act are lower than for violations of the Gambling Act.

In a move to counteract problem gambling, licensed operators will gain the right to access personal financial and health data provided by prospective customers. Additionally, consumers will be required to provide written confirmation before engaging in online gambling.

Legislation for gambling in Sweden is evolving quickly. Last year supplier licences came into force, and Spelinspektionen was granted new enforcement powers. In September, the government proposed a gambling tax increase from 18 percent to 22 percent of gross gaming revenue, set to be introduced no earlier than July.

These changes come at a time when growth in Sweden’s regulated gambling market appears to have stalled, with gross gaming revenue for example declining 0.6 percent year-on-year in Q3 23. Moreover, a report last month suggested that illegal gambling in Sweden has increased tenfold since 2019. The new law represents a significant step towards safer gambling practices in Sweden.