Spelinkspektionen is a gambling authority in Sweden. It has banned WiseAvant OÜ from operating in the local market with immediate effect.
The move comes after an investigation revealed that the company had offered lottery-style games for skins on its website. Players could sell the skins from numerous video games outside of the games they belong to.
The website offered customers the chance to win skins by placing bets. This is according to the regulator’s announcement. The customer would lose their money if the bet is a losing bet. The regulator found it to be in breach of local gambling laws, as the company has no license to offer games of chance or gambling products in Sweden.
They also advertised the betting games in question on various social media channels, including Twitch. With regards to marketing, this was another breach of local gambling regulations.
The public announcement did not list any additional details of the decision or potential penalties for failure to comply.
Concerns among regulators and industry critics has sparked the fast-growing genre of gambling. This is because of its appeal to younger players. Furthermore, skins gambling is mostly unregulated, as a fairly new vertical. It adds another layer to the matter.
Spelinspektionen has taken action against skins gambling websites before. In March, they banned three gambling companies, including two skins betting brands. Newera Frozen PTE Limited and Aprodi Ltd. were among them. It allowed players to use skins as a currency.
The regulator also cracked down on Galaktika NV, Smein Hosting, and True Polygon Entertainment.
The priority of Spelinspektionen is to channel players to the licensed gambling industry and contribute to its growth.
The regulator is now preparing to introduce new AML measures from July 1. Niklas Wykman, the country’s financial minister, and Camilla Rosenberg, Spelinspektionen’s director general recently commented on the matter. They confirmed that the new rules will require sports federations, gambling operators, and the Spelinspektionen to share information about suspicious betting cases on a common platform.
