Spelinspektionen fines Yggdrasil SEK300,000 penalty fee


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Spelinspektionen fines Yggdrasil SEK300,000 penalty fee

Spelinspektionen, Sweden’s gaming regulator, fines Yggdrasil SEK300,000 and issues a warning for supplying gaming software to an unlicensed operator in the country.

Yggdrasil obtained its software license on March 22, 2023, allowing it to develop, provide, and install online gaming software in Sweden until June 20, 2028.

The regulator initiated an investigation on January 16, 2024, into unlicensed operators’ websites in Sweden. Yggdrasil was found to have supplied software to one of these websites, violating chapter 11, section 6 of Sweden’s Gambling Act, which prohibits licensees from providing software to unlicensed entities.

Following the investigation, Yggdrasil addressed the issue on January 23, 2024, attributing the violation to a contractual breach with a retailer. Yggdrasil affirmed that it ceased providing gaming software to unlicensed entities and ensured compliance with licensing requirements.

While the regulator acknowledged Yggdrasil’s corrective actions, it emphasized that compliance with licensing regulations is a standard expectation for all licensees.

The decision reads:

Yggdrasil has promptly taken corrective action and removed games and all other types of assets belonging to Yggdrasil from the website in question and ceased the violation since it was notified by the Gaming Authority. 
The collaboration cannot, however, be considered to have been active in a different way than what one must normally be able to expect from a company that has chosen to operate licensed activities under supervision.
The mitigating circumstances do not outweigh the seriousness of the offense in such a way that it can be considered minor or excusable. In summary, the Swedish Gaming Authority assesses that the violation is serious.

Spelinspektionen opted to issue a warning instead of revoking Yggdrasil’s Swedish license, alongside imposing the penalty fee. According to regulations, the fee ranges from SEK5000 to a maximum of 10% of the company’s turnover from the previous financial year. Given Yggdrasil’s net sales of €514,566 in 2023 (approximately SEK5.8m), the fee could have reached up to SEK580,000.

Yggdrasil, established in 2013, provides top-notch software solutions for casino partners. The provider could position itself among the high-ranked companies, having authoritative awards in the backgr...

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