Swedish Licensed Operators Sound the Alarm Over Unregulated Payment Practices

A Call for Regulatory Action: Swedish Operators Challenge Unregulated Payments

In the dynamic landscape of Sweden’s gambling industry, licensed operators are raising a red flag over the continuous operation of unregulated payment providers. These concerns, especially regarding companies like Finshark, spotlight the urgent need for regulatory intervention to maintain the market’s integrity and fairness.

Persistent Concerns from Licensed Operators

Sweden’s gambling landscape faces a significant challenge with payment providers like Finshark allegedly facilitating transactions for unlicensed gambling operators. Licensed operators in Sweden have expressed their apprehensions, calling on the Swedish Gambling Authority (SGA) to conduct thorough investigations into these practices. These concerns echo past issues involving companies like Zimpler, which discontinued similar services following regulatory directives.

The Emergence of ‘Pay-and-Play’ Features

Recent developments have seen the situation escalate, particularly with the introduction of a new ‘pay-and-play’ feature. Central to these allegations are the online casino websites owned by Malta-based Infiniza Ltd. Screenshots show that Swedish players can use local mobile numbers and the BankID system with Swedish banks to deposit funds, raising questions about the regulatory compliance of these transactions.

Advantages for Grey-Market Operators

Industry insiders claim that this setup gives Infiniza an unfair competitive edge over fully regulated operators. The use of instant payment providers like Finshark and Krofort, coupled with swift payment services, is particularly advantageous in a market where Swedish customers expect quick withdrawals. This situation amplifies concerns over the SGA’s apparent inaction against these practices.

SGA’s Regulatory Measures and Challenges

On March 1, 2023, the SGA implemented a new B2B licensing regime aimed at curbing unlicensed operators. Though payment provision falls outside this regime, the authority has gained stronger payment blocking powers. In July 2023, the SGA took action against Zimpler for its services to unlicensed operators, leading to Zimpler terminating certain relationships and appealing the decision for its broader implications in the industry.

Conclusion:

The ongoing issue of unregulated payment providers in Sweden’s gambling market calls for decisive action by the Swedish Gambling Authority. As licensed operators advocate for fair play and regulatory compliance, the need for clear and effective measures against unregulated entities becomes increasingly apparent. Ensuring a level playing field is crucial for the integrity and sustainability of Sweden’s gambling ecosystem.