Swedish Gambling Authority Cracks Down on Unlicensed Operators

OCR Editor. - November 9, 2023
Sweden flag and Spelinspektionen Logo

In a decisive move, Spelinspektionen, Sweden's gambling authority, has prohibited two unlicensed operators from functioning within its borders, reinforcing the country's commitment to regulated gambling practices.

In an unprecedented crackdown on unauthorized online gambling, Sweden's gaming regulator, Spelinspektionen, has instituted an immediate ban against two companies, Moonrail Limited and Perfect Storm, for actively targeting and servicing the Swedish market sans requisite operational licenses. This measure underscores Sweden's stringent regulatory environment and dedication to safeguarding legal gaming activities within its jurisdiction.

Investigation Leads to Immediate Bans

The commencement of investigations into the two entities came on the heels of evidence suggesting they were catering to Swedish customers. These actions constitute a clear violation of chapter 3, section 3 of the Swedish Gambling Act. According to Chapter 18, section 23, Spelinspektionen possesses the authority to issue injunctions and prohibitions to enforce compliance with the Act.

Analyzing Market Targeting

A key component of Spelinspektionen's decision-making process involved an assessment of whether the games offered by the operators were accessible to the Swedish populace. Indicators of targeting included the availability of the Swedish krona for financial transactions and the usage of Sweden-specific domains and contact information.

For Moonrail Limited and Perfect Storm, the signs were unmistakable: their websites were available in Swedish, and terms and conditions included references relevant to Swedish players. Marketing materials in Swedish further evidenced their focus on the Swedish demographic.

Operators' Failure to Respond

Despite being given a chance to present their side, neither Moonrail Limited nor Perfect Storm had responded to the regulator's queries as of the latest reports. This silence has done little to influence the authority's stance, with Spelinspektionen resolute in its position that the activities of both companies were in direct contravention of Swedish gambling legislation.

A Consistent Regulatory Approach

This action against unlicensed gaming operations is not an isolated instance but part of a series of regulatory steps by Spelinspektionen. Earlier in the week, the regulator fined another operator, Videoslots, for breaches related to anti-money laundering and anti-terrorism financing, underscoring the regulator's unwavering commitment to upholding the integrity of the Swedish gambling market.

Enforcement Action by Spelinspektionen

Spelinspektionen's ban on Moonrail Limited and Perfect Storm is a reminder of the regulator's vigilance in ensuring a secure gambling environment in Sweden. The implications of this action reaffirm the necessity for operators to obtain proper licensing and adhere strictly to the provisions of the Swedish Gambling Act.

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