Two More Online Gaming Operators Fined by Sweden's Spelinspektionen For Violation of Bonus Rules

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June 6th, 2019
Back Two More Online Gaming Operators Fined by Sweden's Spelinspektionen For Violation of Bonus Rules

Swedish online gambling regulator, Spelinspektionen, has slapped two more operators on the wrist after finding them in breach of bonus rules as enforced by the regulatory body.

The two brands facing financial penalties are AG Communications Limited and Genesis Global Limited. The SEK500,000 fine against AG Communications and a higher one of SEK1.7 million against Genesis was decided because the two did not adhere to rules regarding offering bonuses to Swedish customers.

Sweden's Strict But Fair Laws

Sweden's law clearly states...

...that operators licensed in the country can only offer one-time bonuses to new customers, that is, those who have just signed up to the operators' site(s). A violation of the rules happens when any other bonuses or incentives get offered to the same players after they have used their welcome bonus.

Prior to the fine, the two operators received a verbal warning from Spelinspektionen who even warned them that their licenses might be revoked in case they repeat any violation of Swedish law.

Betway and Mandalorian

In May, a similar fate has befallen the other two operators in the Swedish market – Betway and Mandalorian Technologies...

...that have been found guilty of offering continuous bonuses to their clients, instead of a single one. The end result of this investigation led to financial penalties of SEK9 million and SEK5 million respectively.

Spelinspektionen's official statement regarding this case goes as follows:

“As the Spelinspektionen already had indications at the beginning of the year that some gaming companies did not comply with the legislation, on February 19, the authorities issued a letter to all licensees regarding bonus offers. After the letter, the Gaming Inspectorate noted some compliance from the licensees, but the assessment is that further measures must also be taken to achieve full compliance.”

The press release also emphasizes that the main purpose of this policy is to bolster consumer protection and reduce gambling's negative effects.

Worrying Signals

At the beginning of June, the Swedish regulator reported the results of the official investigation that aimed to probe into the age structure of people who have applied for its self-exclusion register, Spelpaus.

According to the said report, almost half the individuals (40%) who applied for the register are young adults, aged between 25 and 34.

The number of self-excluded individuals is now at 35,000, while 2,800 of them signed up for the scheme in May. It provides Swedish gambling population with the possibility of completely blocking themselves from gambling sites that have been licensed in the country.

In March, Genesis Gaming and Paf Consulting found themselves in hot water for failings in protecting their customers who were self-excluded but were still able to gamble on their sites.

In April, Aspire Global had to pay a SEK3 million fine for the same issue.

Source:

“Spelinspektionen Imposes Fine on Two More Operators for Bonus Rule Violation”, Niji Narayan, europeangaming.eu, June 4, 2019.

“did not adhere to rules regarding offering bonuses”

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