Sweden: Gambling giants fined millions for illegal practices

Even the big players in the gambling industry are occasionally in need of an explanation due to unauthorized actions. This is currently the case in Sweden, where judges recently imposed fines of up to 30 million crowns on Mr Green, Spooniker and ComeOn! The sums were originally even higher. The proceedings lasted several years. Why is it taking so long?

Once upon a time in 2021, three of the best-known names in the Swedish gambling world - Mr Green, Spooniker and ComeOn! - suddenly found themselves not only generating big wins and high turnover, but also making headlines. The reason? The Swedish gambling supervisory authority Spelinspektionen accused the market leaders of violating the strict regulatory provisions.

We took up the cases in our reporting, because the excitement was great and so were the penalties: the sums involved ranged up to 100 million crowns. That sounds like a clear-cut case, doesn't it? Well, it didn't go quite that quickly after all. The providers concerned lodged an appeal and suddenly the case dragged on - and on... and on.

Now, some four years later, the final curtain has finally fallen. The Swedish Supreme Administrative Court has ruled: Appeals: Rejected! The verdicts stand - and the operators, i.e. Mr Green, Spooniker and various ComeOn brands, must pay the fines imposed by Spelinspektionen. The announcement of this decision was published at the end of 2024 and left no room for doubt: all of the gambling providers' applications were rejected. However, they will have to pay less than originally planned, which those responsible are sure to regard as a considerable success. But why do such proceedings often take so long?

Mr Green, ComeOn! and Spooniker: Penalty reduction yes, but no acquittal

Although the court reduced the penalties, Mr Green, ComeOn! and Spooniker cannot escape responsibility entirely. The verdict remains clear - and costly - for all three companies.

Mr Green

Mr Green was fined 31.5 million crowns (around 2.7 million euros) in August 2021. According to the judges, the casino and sports betting professionals from Malta showed serious shortcomings both in the area of money laundering prevention (AML) and due diligence.

They could at least look forward to a fairly substantial reduction: In May 2024, the Court of Appeal namely decided to reduce the fine to 13.5 million crowns (approx. 1.2 million euros): 12 million crowns for breaches of the duty of care and 1.5 million for the AML deficiencies.

Incidentally, a particularly curious case involving Mr Green occurred in the summer of 2024: Following a failed lawsuit for the repayment of gambling losses, a domain seizure was actually approved by the player in question at Mr Green.

ComeOn! and its brands

Four brands from ComeOn - Snabbare, Hajper, Casinostugan and ComeOn Sweden - also attempted to contest their penalties. With mixed success, but also with a significant difference to the original claim:

1. Snabbare: The 65 million crowns (5.6 million euros) set were reduced to 24 million crowns (2 million euros).
2. Hajper: Instead of the original 50 million crowns (4.3 million euros), a payment of 14 million crowns (1.2 million euros) remains.
3. Casinostugan: The fine was reduced from 25 million crowns (2.1 million euros) to 8 million crowns (approx. 695,000 euros).
4. ComeOn Sweden: Instead of 35 million kroner (3 million euros), the operator "only" has to pay 13 million kroner (around 1.1 million euros).

Spooniker

The biggest chunk remains with Spooniker. The subsidiary of Kindred (in the fall of 2024 we reported on a billion-euro deal between the Kindred Group and FDJ) had to answer for illegal bonus practices, which are said to date back to March 2020. In December 2024, we asked ourselves whether it was possible to implement a casino bonus with strategy and increase the chances of winning.

The fine of 100 million crowns (around 8.6 million euros today) was enormous. However, it was cleverly reduced to 50 million in 2021 and finally to 30 million crowns (2.4 million euros). But here too, the last attempt at a further appeal was rejected without any ifs or buts.

Why does it often take so long?

When it comes to fines in the millions, companies don't hesitate to use every legal trick in the book - and sometimes with considerable success. There is a reason why proceedings like the one in Sweden drag on for years.

In the clearly illegal sector, of course, no opportunity and no idea, no matter how absurd, goes unused if it promises success: One of the best examples of this is provided by the Austrian vending machine gang "Kajot", which has remained elusive for years.

How do such procedures actually work?

The process begins with an investigation by the regulatory authority, in this case, slot inspections. If violations are found - such as unauthorized bonus promotions or a lack of money laundering prevention - the gambling watchdogs impose a fine. But this is just the beginning.

At the end of 2024 , the German gambling supervisory authority GGL provided interesting insights into its fight against illegal online casinos in day-to-day business.

Gambling companies have numerous opportunities to pull their heads out of the noose.

1. Appeals in several instances: Following a decision by the regulatory authority, those affected can lodge an appeal. This is often only dealt with at a lower court level. If the results are unsatisfactory, the process continues - all the way to the Supreme Administrative Court.
2. Detailed examination of calculations: A popular tactic is to challenge the methods used to calculate penalties. This is what happened in the case of Mr Green, where the claim was significantly reduced on the basis of a new formula. However, judgments in other cases also often contain details that are worth questioning by resourceful lawyers in order to obtain a reduction.
3. Delays due to evidence: Gambling companies often demand comprehensive access to files or provide counter-evidence that must first be examined. This takes time - and often patience.

Why is delay a strategy?

How do companies reduce their penalties?

Gambling giants often rely on the following tactics:

• New compliance measures: Companies like Spooniker prove after the fact that they have adjusted their internal policies since the violation was discovered. This shows "good faith" and sometimes leads to a reduction in penalties.
• Reference to economic damage: Some companies argue that they could be driven to ruin by excessive penalties - an approach that has actually been successful in the past. Of course, this assumes that the business in question is fundamentally legal and is not normally guilty of any wrongdoing (and certainly not deliberate).
• Waiting for new precedents: As soon as a court sets new standards for the assessment of penalties, companies can challenge previous judgments and have their penalties reduced.

Such cases are more than just legalese - they are a chess game at the highest level. No company, no matter how financially strong, will surrender to a fine of 100 million crowns or 8 million euros without a fight.

Instead, every paragraph will be turned over, every loophole explored and every argument put on the table in order to at least achieve a reduction. In the gambling industry (just as in any other industry, of course), this is less a matter of principle and more a question of economic existence.

Source of the image: https://pixabay.com/vectors/judge-court-gavel-administration-7246859/