Spelinspektionen Cracks Down on Unlicensed Operators

Spelinspektionen’s Firm Action Against Non-compliance

Kicking off 2024 with a strong message, Sweden’s national gambling regulator, Spelinspektionen, has initiated its first major enforcement actions of the year. By issuing bans against True Polygon Entertainment Limited and Smein Hosting NV, Spelinspektionen reinforces its commitment to maintaining a secure and compliant gambling environment in Sweden.

Targeting Unlicensed Online Gambling

Spelinspektionen’s recent enforcement targets two entities: True Polygon Entertainment Limited and Smein Hosting NV. Accusations levied against these operators include allowing Swedish players to gamble on their primary and affiliate sites without possessing the requisite Swedish license. This decisive action reflects Spelinspektionen’s ongoing effort to clamp down on unlicensed online gambling activities within Sweden’s borders.

Details of the Operators and Allegations

Registered in Cyprus, True Polygon Entertainment Limited operates the CSGOBIG platform. Meanwhile, Curaçao-based Smein Hosting NV runs Gamdom.eu and Gamdom.com. According to Spelinspektionen, these operators failed to implement necessary measures to prevent account creation by Swedish residents. They are now faced with the opportunity to respond and potentially contest these bans.

Smein’s Marketing Tactics Under Scrutiny

In the case of Smein Hosting NV, the regulator has pinpointed specific marketing strategies targeting Swedish customers, particularly through affiliate partnerships. Additionally, the company faced earlier scrutiny, being blacklisted on Twitch in August, a move indicative of its alleged targeting of the Swedish market.

Debating the Swedish Gambling Tax Hike

Amidst regulatory actions, the Swedish gambling industry faces another challenge: a proposed tax hike. The CEO of Sweden’s Aktiebolaget Trav och Galopp (ATG) has called for consideration of a differentiated tax rate for sports betting, mirroring practices in other nations. The Swedish government’s proposal to increase the gambling tax from 18% to 22% starting July 1, 2024, is anticipated to raise an additional SEK540 million (€45.5 million) in annual revenue.

Conclusion:

The actions taken by Spelinspektionen against True Polygon Entertainment Limited and Smein Hosting NV signal a robust approach to upholding gambling regulations in Sweden. These measures, coupled with the ongoing debate around the proposed gambling tax increase, highlight the evolving landscape of the Swedish gambling sector. Spelinspektionen’s commitment to regulatory enforcement and industry integrity remains a cornerstone in shaping the future of gambling in Sweden.