Court Reduces Fine Imposed on Mr Green by Swedish Gambling Regulator
The Court of Appeal has ruled to reduce a significant fine imposed by the Swedish gambling regulator, Spelinspektionen, against Mr Green in 2021. While the court upheld the regulator’s decision to issue a fine, it determined that the amount should be recalibrated in accordance with the Supreme Administrative Court’s guidelines on calculating penalty fees.
Background of the Fine
In 2021, Spelinspektionen issued two fines totaling SEK 31.5 million (€2.7 million) against Mr Green for failures related to anti-money laundering (AML) protocols and duty of care obligations. These penalties followed a detailed review of 15 customer accounts, revealing that Mr Green had failed to adequately engage with customers who made large deposits and incurred losses exceeding their declared taxable income over multiple years.
Upon review, the Court of Appeal decided to reduce the total amount of the fines to SEK 12 million, reflecting a more appropriate application of the penalty calculation guidelines set forth by the Supreme Administrative Court.
Similar Cases and Regulatory Actions
This decision comes on the heels of another recent fine reduction involving Kindred’s Spooniker subsidiary. Last month, the fine against Spooniker was reduced by SEK 70 million (€6.1 million) to SEK 30 million (€2.6 million). Spelinspektionen initially imposed this fine due to violations of Sweden’s strict bonus rules that occurred in 2019.
Under Sweden’s Gambling Act, operators are permitted to offer a single bonus to customers upon sign-up. However, Spelinspektionen found that Spooniker’s brands, including Unibet, iGame, Maria Casino, bingo.com, and Storspelare, had extended tournament rewards, prize draws, and loyalty promotions that could be interpreted as bonuses, thus breaching regulatory guidelines.
The scrutiny of Mr Green’s operations isn’t limited to Sweden. In April, Denmark’s gambling regulator, Spillemyndigheden, issued three injunctions against Mr Green for breaches of the country’s Money Laundering Act. The regulator cited deficiencies in risk assessments, inadequate business processes, and insufficient documentation. Furthermore, Spillemyndigheden has initiated legal proceedings against Mr Green for failing to report suspicions of money laundering activities.
Implications for the Gambling Industry
These recent regulatory actions and court rulings highlight the growing emphasis on stringent compliance within the gambling industry across Europe. Regulatory bodies are increasingly vigilant about ensuring that operators adhere to AML protocols and consumer protection standards.
Gambling operators must continuously update their compliance strategies to align with evolving regulatory expectations. The reductions in fines, as seen in the cases of Mr Green and Spooniker, indicate that while the courts support the enforcement of regulatory standards, there is also a push for fair and proportionate penalty assessments.
