Sweden: Court reduces two million-euro fines

Twice in the space of just a few days, a Swedish court has cancelled the fine imposed by the Swedish Gambling Authority. The two gambling companies affected are Kindred and Mr Green. But why did the court reduce the penalty in both cases and what impact will the judgements have on the future work of the Swedish Gambling Authority?

In the past, we at GambleJoe regularly reported on fines imposed on providers by the respective gambling authorities. However, it is now apparent that some fines ultimately do not stand up in court. The gambling provider Kindred, for example, was successful before the Court of Appeal in Jönköping, Sweden, and was able to reduce the original fine by two thirds. Competitor Mr Green was similarly successful a few days ago at the Court of Appeal in Linköping. As recently as April of this year, we reported that game developer Yggdrasil was to pay a five-figure fine in Sweden.

Kindred Group: fine reduced from SEK 100 million to SEK 30 million

Back in 2020, the Swedish Gambling Authority Spelinspektionen imposed a fine of SEK 100 million on Kindred. That is the equivalent of just under 9 million euros. The reason for this record-breaking fine is said to have been violations of the bonus regulations in online casinos. Contrary to the legal provisions, Kindred is said to have offered bonuses to more than just new customers. Although Kindred immediately adjusted its range of promotions, it simultaneously lodged an appeal against what it considered to be a far too high fine.

As a result, the fine was initially halved from SEK 100 million to SEK 50 million (= approx. EUR 4.5 million) in a first appeal before a court of appeal in 2021. Now the next victory at the Court of Appeal in Jönköping: the fine is reduced once again and now amounts to SEK 30 million (= approx. 2.5 million euros). Kindred had argued that the bonus provisions in the law were not specific enough and left room for interpretation. Last summer, we at GambleJoe also reported on fines totalling millions for Videoslots and Betsson.

Mr Green: Fine reduced from SEK 31.5 million to SEK 12 million

Gambling provider Mr Green can also look forward to the judgement of the Swedish Court of Appeal these days. At the beginning of June, the Court of Appeal in Linköping reduced a fine imposed by the Swedish Gambling Authority in 2021 by two thirds. While the fine originally totalled SEK 31.5 million (approx. €2.75 million), the court's decision meant that it was "only" SEK 12 million (approx. €1 million).

In their judgement, the Swedish judges argued that the original fine was disproportionate - it had simply been set too high. Despite the reduction in the fine, the authority itself feels vindicated and vindicated in its actions. The Court of Appeal confirmed and accepted the shortcomings identified by the authority. Only the amount of the fine was criticised.

Conclusion

The two current cases from Sweden show that the gambling authorities initially have the "power" to impose fines for offences at their own discretion. Nevertheless, there is always the option of having the official decisions confirmed by the courts. At least in the two cases described here, the Swedish Gambling Authority appeared to have been a little too ambitious with regard to the level of the fine.

Image source: https://pixabay.com/de/illustrations/gericht-richter-gerichtlich-legal-5665884/