Unauthorised Betting Results in SEK4.0m Fine for Betfair in Sweden
Published May 2, 2023 by OCR Editor
Swedish regulator Spelinspektionen has fined Flutter Entertainment-owned Betfair SEK4.0m ($480,000) for offering bets on youth-level football games not allowed by national law. The regulator has warned the operator that violating such regulations constitutes a serious violation.
Swedish regulator Spelinspektionen has fined flutter Entertainment-owned Betfair SEK4.0m for offering betting on football competitions that are not permitted by national law. The regulator found that Betfair had offered bets on the U21 Allsvenskan, a youth-level football league. Swedish law only allows wagering on the country's four highest levels of league football.
Spelinspektionen said that betting was available on 148 matches in 2021 and 2022, with 224 Swedish customers wagering SEK1.1m across 139 of these games. In response to the findings, Betfair said that the bets were only available on its Betfair Exchange site, where players are matched against each other to form odds and bets. In addition, Betfair said it only takes a commission from these bets.
However, Betfair admitted that featuring U21 Allsvenskan games on Betfair Exchange violated Swedish law regarding the types of competitions players can bet on in the country. The operator said a manual process of blocking access to betting on the event failed, and as such it was at fault. According to Betfair, it no longer offers any form of betting on U21 Allsvenskan. It has taken measures to ensure any wagering options on the competition and other lower leagues are now blocked in Sweden. Players in the country may now only bet on the top two leagues.
Spelinspektionen acknowledged the steps Betfair has taken and its admission of failure. Still, having classified the violation as a “serious” breach of gambling laws, the regulator issued the fine and also handed Betfair a formal warning. The regulator said, “Betting on the U21 Allsvenskan is not permitted to protect young players from undue influence. Violating these regulations constitutes a serious violation. The violation has continued over a long period and on repeated occasions. It has been systematically recurring during 2021 and 2022.”
The regulator arrived at the SEK4.0m penalty fee in line with regulations, which state that a fine for a serious offense should be no less than SEK5,000 and a maximum of 10% of the operator’s turnover. Betfair’s gross turnover in 2021 was more than SEK4.35bn, which meant a maximum fine could have reached SEK435.5m. However, Spelinspektionen also considered the operator’s gross gaming revenue for the same year, which reached SEK32.7m, to ensure the fine was not disproportionate. As such, it was concluded that Betfair should pay a fine of SEK4.0m for the violation.
Betfair’s violation of Swedish law and subsequent fines demonstrate the need for online gambling operators to adhere carefully to the regulations of the countries in which they operate. Furthermore, with the global online gambling market projected to grow at a CAGR of 11.5% from 2021 to 2028, operators must ensure they maintain a positive relationship with regulators to avoid similar penalties in the future. While Betfair has taken measures to ensure compliance in Sweden, it may take further efforts to restore its reputation and regain the trust of regulators and customers.
