$10М Fine Against Svenska Spel Overturned by Swedish Court

A Swedish administrative court has reversed a 2024 ruling by the Swedish Gambling Authority (Spelinspektionen/SGA), which had imposed a SEK 100 million ($10.47 million) penalty and warning to state-owned operator Svenska Spel over responsible gambling obligations.

Court Sides with Svenska Spel 

It should first be noted that the SGA initially imposed the fine following a review into Svenska Spel’s 10 biggest-spending customers during a set period in 2021. According to the regulator, the players exhibited signs of excessive gambling, and Svenska Spel had not taken sufficient measures to protect these players.

Svenska Spel later appealed the decision to the Administrative Court in Linköping. In its appeal, the operator argued that it had complied with the conditions of its license under Sweden’s Gambling Act by consistently monitoring customer gambling behavior and implementing responsible gambling measures when there was reason to intervene.

The court reviewed Svenska Spel’s appeal and concluded on June 2^nd that the fine imposed by the SGA should be overturned. According to the court, its decision is based on the principle of legality. This means that an authority may only take measures that are supported by the legal order. 

Without clearly defined requirements, the company’s actions could not be subject to penalties, according to the court. However, at the time the SGA reviewed Svenska Spel, there were no specific rules or guidelines for licensees outlining which actions were required to meet the duty of care under Chapter 14, Section 1 of the Gambling Act, or when those actions should be implemented in such cases.

A breach of the gambling responsibility provisions in the Gambling Act can only result in liability if it is sufficiently clear to the individual what actions should have been taken to avoid the penalty, but were not. While the court acknowledged that the losses incurred by the customers indicated excessive gambling, it noted that Svenska Spel had implemented several measures aimed at minimizing the risk of harm.

Svenska Spel Talks About the Court’s Decision

Fredrik Wastenson, CEO and business area manager for Svenska Spel Sport & Casino AB, expressed satisfaction with the Administrative Court’s decision to uphold the company’s appeal and overturn the Swedish Gambling Authority’s ruling. He stated that the company appealed the decision because it considered the penalty fee disproportionate to the alleged shortcomings and saw a need for greater clarity in the interpretation of the duty of care.

Wastenson also emphasized that the authority should only take actions supported by the legal framework, referencing the principle of legality, an interpretation the court also affirmed, as we mentioned.

The judgment has not yet gained legal force, and SGA, or other interested parties, may still appeal to the Court of Appeal in Jönköping.