Navigating the Complexities of Gambling Regulation: Recent Developments in Sweden

During the spring of 2024, the Swedish Gambling Authority (the SGA) initiated supervision of two licensed online gambling operators, Roar Vegas Ltd and Glitnor Services Limited. The outcome of the supervision was recently published by the SGA and it resulted in SGA taking decisive action in both cases for breaches of the duty of care as outlined in the Swedish Gambling Act (2018:1138) with penalties of SEK8 million (approx. EUR730 thousand) and SEK28 million (approx. EUR2,6 million) respectively.

These cases highlight the stringent regulatory environment in Sweden and underscore the importance of compliance for operators in the gambling sector, specifically in relation to the duty of care.

 

Regulatory Framework and Duty of Care

The duty of care in the gambling sector is outlined in Chapter 14, Section 1 of the Swedish Gambling Act (2018:1138) (the Gambling Act). It requires license holders to prioritize social and health considerations in their operations, aiming to protect players from excessive gambling and support those who need help reducing their gambling. This obligation is a core component of the Gambling Act’s overarching goal: to mitigate the harmful consequences of gambling, which is recognized as a public health issue with significant health, social, and economic impacts.

 

Case Study: Roar Vegas Ltd

Roar Vegas Ltd, a licensed online gambling operator in Sweden, was found to have breached its duty of care by failing to provide adequate support to three of twelve audited customers, despite clear indications that intervention was necessary to help them reduce their gambling. Although having systems in place to monitor gambling behaviour and sending automated messages to customers, the SGA determined that Roar Vegas did not act with sufficient urgency or take effective measures early enough. Consequently, Roar Vegas was issued a reprimand and ordered to pay a penalty of SEK8 million.

Roar Vegas argued that the lack of clear regulations regarding the timing and nature of interventionist measures contributed to the breach. However, the SGA maintained that the legal meaning of the duty of care had been sufficiently clarified since the Gambling Act’s enactment.

 

Case Study: Glitnor Services Limited

Similarly, Glitnor Services Limited was found to have breached its duty of care by failing to assist ten of the twelve audited customers in reducing their online gambling, despite clear reasons to intervene. The SGA noted that Glitnor’s measures, such as care calls and emails, were largely ineffective, there were shortcomings in the monitoring and follow-up efforts and that the measures taken were implemented too late. The company was issued a warning and ordered to pay a penalty of SEK28 million.

Glitnor Services Limited argued that the duty of care does not not impose an obligation to exclude players without their consent and pointed to the absence of statutory guidelines regarding the timing of implementing measures. However, the SGA asserted that the duty of care includes the implementation of restrictions and access limitations when necessary, based on the individual needs of the customer.

 

Implications for Gambling Operators

These cases serve as a critical reminder for online gambling operators of the importance of compliance with the duty of care provisions. The Swedish Gambling Authority’s actions demonstrate a robust approach to ensuring that operators adhere to regulations designed to protect consumers from the adverse effects of gambling. Operators must ensure that their monitoring and intervention systems are not only established but also effective and timely in addressing signs of excessive gambling behaviour.

 

Conclusion

The SGA’s decisions against Roar Vegas Ltd and Glitnor Services Limited serve as a reminder of the stringent requirements imposed on gambling operators to protect their customers. As the regulatory landscape continues to evolve, operators must remain vigilant and proactive in their duty of care efforts.

 

Our Expertise

At DLA Piper, we specialise in advising clients in the gambling sector on regulatory compliance and risk management. Our team of experienced lawyers is well-versed in the intricacies of gambling legislation and can provide tailored solutions to help your business navigate the complex regulatory landscape. By understanding and addressing the regulatory requirements, operators can not only avoid penalties but also contribute to a safer and more responsible gambling environment.

For more information on gambling laws and regulations across the globe and contact information to specialized lawyers in your jurisdiction, please refer to the “Gambling Laws of the World Guide” a comprehensive resource for navigating the legal complexities of the gambling industry, available here.