Spelinspektionen Appeals Court Decision on Zimpler’s Unlicensed Operations

174
June 17th, 2024
Back Spelinspektionen Appeals Court Decision on Zimpler’s Unlicensed Operations

The Swedish regulator Spelinspektionen has filed an appeal against the Linköping administrative court’s decision to annul its injunction against payment provider Zimpler AB. This move follows a series of legal actions concerning Zimpler's involvement with unlicensed gambling operators in the Swedish market.

In July 2023, Spelinspektionen issued an order for Zimpler to cease its operations with unlicensed operators, warning that failure to comply could result in a fine of up to SEK25.0m (£1.9m/€2.2m/$2.4m). The order specifically addressed Zimpler’s provision of services, including the use of the e-identification service BankID, for transactions with offshore gambling sites.

Court Ruling and Appeal

Zimpler contested the order, and the administrative court ruled in its favor, finding that Spelinspektionen lacked sufficient basis for the injunction. Consequently, the court annulled the order.

However, Spelinspektionen has now appealed this decision. The regulator argues that because Zimpler is a Swedish company offering its payment services, the gambling activities facilitated by these services were effectively targeted at the Swedish market, thereby promoting illegal gambling.

Spelinspektionen is seeking a higher court's review due to the lack of legal precedent in this matter. The regulator expressed concerns about the administrative court’s interpretation of the law and emphasized the necessity for clarity on how the promotion ban should be applied when gambling activities are directed at Sweden.

Arguments for the Appeal

In its appeal, Spelinspektionen contends that the administrative court "assessed the legal situation incorrectly." The regulator insists that the illegal gambling sites were not only accessible to Swedish consumers but were also tailored to the Swedish market through the use of Zimpler’s services.

The appeal highlights the role of BankID, an e-identification service only available in Sweden, as a significant factor demonstrating the specific targeting of Swedish consumers. By enabling transactions through BankID, Spelinspektionen argues that Zimpler was facilitating illegal gambling activities within the country.

Furthermore, Spelinspektionen asserts that Zimpler was aware of the illegal status of the offshore operators it collaborated with, thereby promoting illegal gambling. The regulator stated, "It must be considered clear that Zimpler through its actions has illegally promoted [offshore operators]. Whether or not Zimpler’s payment service has explicitly targeted gambling companies is irrelevant."

The regulator’s appeal underscores the importance of the case in setting a legal precedent for managing the application of gambling laws in Sweden. The outcome could significantly impact how payment services are regulated in relation to unlicensed gambling operators and the enforcement of the promotion ban in the country.

Source:

"Swedish regulator appeals annulment of Zimpler injunction". iGaming Business. June 13, 2024. 

Swedish Gambling Authority (Spelinspektionen). "Överklagande Zimpler AB FR5684-23." [PDF]. June 12, 2024.

Gambling Law & Society News Casino Banking
Back to articles
Play at US friendly Bovada now!

Search

Search Results

Select language

English English

Don't show this again

Share on Facebook

Share on Twitter

Share