The Administrative Court has ruled in favor of Spelinspektionen, the Swedish gambling regulator. The case involved an enforcement action against Hacksaw Studios AB. In May 2024, the regulator issued a warning and penalty to the provider for supplying software to two operators without Swedish gaming licenses.
Lawmakers introduced a requirement for gaming software providers to hold a local license. This change was made to the Swedish Gambling Act on July 1, 2023. Increasing channelling, as well as counteracting illegal gambling are the requirements. It applies to all those who manufacture, provide, install and/pr modify gaming software used in commercial online gambling.
License conditions prohibit providers from supplying software or games to gambling operators. This applies to operators whose products are available in Sweden without a Swedish gaming license.
Last year, Hacksaw appealed against the punishment. Now, the Administrative Court has found in favor of the regulator. However, it reduced the original sanction fee of SEK 2.6 million (€226,350).
The Court agreed with the assessment of the Gambling Authority that Hacksaw Studios AB had violated the Gambling Act through providing gaming software to operators without the necessary license to provide games on the Swedish gambling market. About the size of the penalty, the court based its decision on the net turnover reported by Hacksaw Studios AB and also considered that there were specific mitigating circumstances.
On the other hand, Spelinspektionen has started a preliminary studio into charitable gaming in Sweden. It intends to get an overall picture of the current situation and to identify potential challenges. The study will also propose possible measures to improve regulations and practices within the framework of existing legislation.
The regulator noted that before the reregulation of the gaming market on January 1, 2019, there was no detailed investigation into the need for changes affecting those offering gaming for public benefit purposes. The introduction of regulated online gambling marked a significant shift. Over time, conditions have changed, and the regulator now recognizes the need to consider updating the regulatory framework.
