Sweden’s Gambling Authority, Spelinspektionen, has penalised horse racing company AB Trav och Galopp (ATG) and Kindred's Spooniker over deposit cap loophole on their online sites.
Back in July 2020, Spelinspektionen had announced their controversial new deposit caps operators were entrusted to abide, valued at SEK5,000/$591/£439/€488 in bid to protect problem gamblers. This was also a reaction to the alleged surge in number of players gambling online as a result of the pandemic.
The Gambling Authority discovered that players at ATG and Spooniker could deposit more than the legal deposit limit of SEK5,000 per week. In fact, it is reported that players were able to spend up to SEK50,000 in new deposits for a week. This directly violates the laws place that specifies that operators must “ensure that the limit cannot be exceeded”.
In a press release, Spelinspektionen commented on the situation stating, diving into the course of action in terms of penalty:
The Spelinspektionen combines the injunction with a fine of SEK 1m (€97,200/$117,700/£87500) for each commenced week that the injunction is not complied with, calculated three weeks from the end of the week in which AB Trav och Galopp and Spooniker Ltd take part in the decision,
iGaming Business state that ATG claim that less than 100 players went over the deposit limit, deposited more money to later lower their limit again. ATG also stated that they have measure in place to notify players who show signs of addiction, and will ultimately block players after repeated breaches.
AGT issued a statement arguing:
To apply the provision in the way that Spelinspektionen has would be contrary to the principle of legality,
ATG has implemented the provision in accordance with the wording and in accordance with the Government’s memorandum.
Spelinspektionen shared their disappointment stating:
That fact that ATG has chosen to suspend a number of players who have bypassed the deposit limits in the manner described above do not change the Swedish Gaming Inspectorate’s assessment, but only reinforces the image that the way that ATG has chosen to manage the deposit limit does not fulfill its function,
To many operators dismay, the deposit restriction has been extended until June 2021. Kindred is one of handful of operators who openly criticised this move. Despite these restrictions, experts show concerns over the effectiveness of these measures in addressing problem gambling in Sweden.
Article originally appeared on: iGaming Business at https://igamingbusiness.com/atg-and-spooniker-both-fined-by-spelinspektionen-over-deposit-cap-loophole/
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