Videoslots Fined $1.26 Million in Sweden

Summary

• Videoslots has received a fine of SEK 12 million in Sweden.
• The regulator has charged the provider with failing to meet its RG standards.
• Videoslots plans to challenge the penalty and has criticized the regulator's approach.

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Videoslots has recently faced a significant fine from the Swedish Gambling Authority, also known locally as Spelinspektionen. This action marks Videoslots as the latest reputable company in Sweden's iGaming market to be penalized. The fine was announced on the regulator's official website on Tuesday, April 22, citing the company's failure to maintain the required duty-of-care controls expected of licensed operators in the industry.

Videoslots faces a new fine in Sweden over alleged RG failures

To determine the SEK 12,000,000 financial penalty (approximately $1.26 million), the regulator initiated an investigation in early 2024 and discovered multiple instances where the company allegedly failed to meet its full obligations. The investigators focused on the gaming sessions and histories of 12 customers, five of whom were aged between 18 and 24. The regulator stated that all these customers exhibited signs of compulsive gambling, which the company failed to acknowledge. According to Spelinspektionen, this oversight was due to

in the company's processes for identifying and addressing such issues. The investigation revealed that an individual was able to place SEK 4 million across 28 deposits in a single day, and Videoslots’ intervention, which relied on automated messages, was deemed insufficient. Videoslots has contested the allegations and argued that the regulator was not entirely transparent. The company criticized the regulator's guidelines, describing them as vague. Moreover, Videoslots reported that it had restricted more than 1,000 accounts during the investigation period and requested a reduced penalty, which the regulator denied. The company plans to appeal the decision in the administrative court.

Videoslots calls on the regulator to set clearer standards

Videoslots has prior experience with such appeals, having successfully contested a fine of SEK 9 million (approximately $940,000) and reduced it to SEK 4 million (approximately $420,000). Nevertheless, Videoslots continues to encounter what it perceives as unfair operating conditions. The company claims to have invested significantly in ensuring it meets the highest standards of player protection. Despite this, the regulator has persisted in targeting operators based on what the company considers arbitrary criteria. According to Videoslots, the regulator appears to regard any monthly deposit exceeding SEK 100,000 as problematic, regardless of an individual's income.