The Swedish Gambling Authority (Spelinspektionen) has initiated legal action against three online operators for accepting bets from Swedish players without the necessary permissions. The three operators in question are Igloo Ventures SRL, EOD Code SRL, and MIBS NV.
Key Points of This Story
- The Swedish Gambling Authority has banned Igloo Ventures SRL, EOD Code SRL, and MIBS NV for illegally accepting bets from Swedish players.
- The gambling regulator also initiated a legal enquiry against More Tech Group, the company behind lottoexperten.com, lottoexperten.se, and superlottoclub.com.
- Spelinspektionen has been cracking down on illegal operators following criticism from the National Audit Office earlier this year.
Illicit Gambling Operators Facing Regulatory Heat
The Swedish Gambling Authority has banned Igloo Ventures SRL, EOD Code SRL, and MIBS NV for illegally targeting Swedish consumers with unauthorised adverts. According to Spelinspektionen’s press release, the operators used social media influencers on Instagram and Twitch, affiliate marketing, and banner ads on Swedish websites without the regulator’s approval.
Spelinspektionen has also initiated legal action against More Tech Group, which operates lottoexperten.com, lottoexperten.se, and superlottoclub.com. The regulator plans to review how strictly the company follows important Swedish gambling provisions, such as written consent for telephonic sales and offering credit and ID verification of consumers against Spelpaus, the national self-exclusion registry.
This crackdown on illicit gambling operators is part of the government’s efforts to curb unlawful online gambling and protect citizens from its pitfalls. The National Audit Office criticised the Gambling Authority earlier this year for its nonchalant attitude towards illegal gambling operators. In response, Spelinspektionen initiated a review of the Gambling Act and renewed its efforts to rein in rogue players.
What Constitutes Content “Targeted” to Swedish Players?
The gambling authority has clearly defined the clauses used for classifying content “targeted” to Swedish consumers. It checks whether the content on the platform is in Swedish, has affiliate marketers targeting consumers in Swedish, and if the domain uses Swedish payment or e-identification systems.
This is not the first time Spelinspektionen has banned gambling operators in the iGaming industry for violating regulations. Last year, the regulator banned three operators for illegally offering “skin” betting. Newera Frozen PTE and Aprodi offered different game modes, enabling skin betting, without the necessary permissions.
These lotteries allowed players to bet with “skins” or in-game collectables that can be traded like real goods. Skins often hold immense monetary value outside the game as well. Their prices depend on their rarity and the game’s popularity. In response to the investigation, Newera claimed that it sells loot boxes, which cannot be classified as gambling and hence do not need a gambling license.
However, the company has since removed all Swedish content from the website and Trustly’s payment services to avoid further escalation. Galaktika NV also found itself at the receiving end, as investigations into Drip casino, a brand it owns and operates, revealed affiliate marketing in Swedish. As a result, Spelinspektionen banned Galaktika NV from offering gambling services in Sweden.