Swedish court has overturned the Swedish Gambling Authority’s 2024 decision to fine state-owned operator Svenska Spel SEK100 million (€9.2 million) and issue an official warning.
The penalty, issued in March 2024, was based on shortcomings in Svenska Spel’s duty of care and responsible gambling efforts. The SGA’s investigation had reviewed the operator’s 10 highest-spending customers in 2021 and concluded that these individuals displayed signs of problem gambling. The regulator argued that Svenska Spel failed to take adequate action to protect these players or help them limit their gambling when necessary.
Svenska Spel mentioned:
Since the 2021 supervisory period, Svenska Spel Sport & Casino has further developed gambling responsibility, including by checking the income of customers who want to set high gambling limits, as well as a more spot-proof selection for welfare calls.
Svenska Spel appealed the Swedish Gambling Authority’s decision to the Administrative Court in Linköping, which ruled in the operator’s favor on 2 June.
In its appeal, Svenska Spel argued that it had met the obligations of its licence under the Gambling Act by consistently monitoring player behavior and implementing responsible gambling measures when appropriate.
The operator also contended that, due to the absence of specific legal guidelines outlining which actions should be taken and when, its efforts should be deemed adequate under the principle of legality.
The court agreed, stating that its assessment was guided by the legality principle – meaning authorities can only act when their actions are clearly supported by existing law. The court also acknowledged that the losses incurred by the customers indicated signs of excessive gambling, but noted that Svenska Spel had implemented various actions to mitigate the risk of harm.
The court concluded:
The administrative court understands the Gambling Authority’s views that it can be questioned whether the measures taken by Svenska Spel in all cases have been sufficient to counteract the harmful effects of excessive gambling and whether they have been taken quickly enough.
At the time of the supervision, however, there were no concrete rules and practices for licensees to follow regarding which measures needed to be taken to fulfil the duty of care in accordance with Chapter 14, Section 1 of the Gambling Act, and when these measures should be taken in such a case.
The assessment of whether it is right to intervene with a warning and a penalty fee must therefore be characterised by restrictiveness in order to be compatible with the principle of legality.
The Administrative Court’s overall assessment is that it has not been shown that Svenska Spel has failed in its duty of care under Chapter 14, Section 1 of the Gambling Act in such a way that it constitutes grounds for intervention under Chapter 18, Section 12 of the Gambling Act. The Court has therefore decided to overturn the Gambling Authority’s decision.
