The state-owned company operating in the regulated gambling market in Sweden, Svenska Spel, reached a major milestone in its legal fight against a hefty monetary sanction imposed by the country's gambling regulator, Spelinspektionen.
Earlier this week, the Administrative Court in Link?ping upheld the company's appeal filed against the Swedish Gambling Authority's decision to enforce a warning and a fine against Svenska Spel Sport & Casino AB.
The overturning of the gambling regulator's decision is yet to enter into legal force and can be subject to an appeal.
Still, the latest development represents a major milestone for Svenska Spel, considering that the court sided with the company's position that the penalty enforced by Spelinspektionen is disproportionate.
The legal dispute stems from a SEK 100m ($10.4m) fine and a warning issued by Spelinspektionen against Svenska Spel Sport & Casino AB in March 2024.
At the time, the gambling watchdog claimed that an investigation had uncovered duty of care failings related to nearly a dozen customers.
Per Spelinspektionen's claims, Svenska Spel failed to protect 10 customers who gambled significant sums between October 2021 and December 2021.
Those actions, according to the gambling watchdog, were in violation of the Swedish 2019 Gambling Act.
As noted, Svenska Spel disagreed with the hefty sanction and turned to court to resolve the issue.
The latest development comes after only recently, three licensed gambling operators in Sweden received fines and warnings.
Late last week and early this week, Spelinspektionen issued monetary sanctions and warnings against TSG Interactive PLC, Snabbare Ltd and Betsson Nordic Ltd, claiming deficiencies related to customer due diligence.
Fredrik Wastenson, Svenska Spel Sport & Casino AB's CEO and Business Area Manager, commented on the topic, Casino Guru News learned from a press release.
"It is gratifying that the Administrative Court upholds our appeal and overturns the decision of the Swedish Gambling Authority," he said.
Moreover, Wastenson acknowledged Svenska Spel's intention to appeal the hefty fine, reiterating that it was disproportionate and at the same time, acknowledging that the duty of care rules need to be more precise.
Finally, the executive said: "We believe that the authority may only take measures that are supported by the legal order, the so-called principle of legality, which the court has also stated."
In April, Svenska Spel released its Q1 2025 financial report.
While the company reported a dip in revenue for the first quarter, the result was partially offset by an increase in online gambling revenue.
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