Spelinspektionen Issues Warning to Payment Service Providers

In order to protect consumers in its newly regulated iGaming market, The Swedish Gaming Authority has published a warning to PSPs (payment service providers), targeting unlicensed gambling operators in the country who do not adhere to the consumer protection rules, established on January 1st.

The regulator notified e-banking platforms not to facilitate payments with operators who don’t comply to the country’s Gaming Act, as it puts players at risk, breaks the law and contributes to illegal activities such as money laundering, unfair market competition and social damage.

Patrik Gustavsson, Spelinspektionen head of operations issued an official statement:

“Payment service providers operating in the gaming market cannot transfer bets or winnings to and from unlicensed gaming companies, which contribute to the increased likelihood of money laundering, social damages and unfair competition.

Unregulated gambling also has serious consequences for society, for example in form of lost tax revenue and increased vulnerability for problem gamblers.”

Moreover, the Swedish Gaming Authority explicitly made it clear that unlicensed gambling platforms do not have access to Spelpaus – regulator’s system to opt-out of all regulated gambling.

By carrying out financial transactions with unlicensed gaming companies, payment service providers risk committing a serious violation of promoting unlawful gambling in the country and endangering its citizens as consumers, report reads.

Favorably, the re-regulation of the Swedish iGaming market has considerably decreased revenues from unlicensed operators. As reported by Spelinspektionen, approximately 91 per cent income coming from gaming sites and online casinos in the country was generated in a legit way, confirming market’s success and integrity.

Ninja Casino’s Great Comeback to Sweden

This is not the first time that Spelinspektionen (Swedish Gaming Authority) has issued warnings to gambling companies. In June 2019, the regulator penalized Betsson and SkillOnNet with seven-figure fines for breaching regulations on offering players bonuses more than once.

Both brands were under review by SGA who discovered that promotional offers on these sites came in various forms, including weekly surprises, cash prize draws, extra spins and even free games.

A couple of days after, Spelinspektionen slapped two more operators, AG Communications Ltd and Genesis Global Ltd. The penalties for breaching bonus regulations reached SEK500,000 and SEK1.7 million respectively.

However, one of the brands is set to return to the regulated Swedish market - Ninja Casino. The platform’s parent company Global Gaming said it has formally transferred the domain to Viral Interactive, a Finnplay subsidiary.

“We are, of course, aware of Ninja Casino's enormous value in the Swedish market and it should come as no surprise that we do not want to let its potential go to waste.

It is my belief that Ninjacasino.se is in safe hands with Viral Interactive and Finnplay's provenly safe and responsible platform, which also places a great deal of emphasis on entertainment and the pleasure of gaming,” explained Tobias Fagerlund, chief executive.

The regulator recently published the results of 2019 fiscal year’s second quarter and revealed that online gaming generated $630 million from April 30th to July 30th, which represents a 3.2% incline on a yearly basis.

Source:

“Swedish regulator issued warning to PSPs”, Wojtek Malinowski, amblerspost.com, September 21, 2019.

“Ninja Casino plots Swedish relaunch”, gamingintelligence.com, September 23, 2019.