Videoslots online casino wins legal battle against Swedish Gambling Authority
Videoslots, the UK-based online casino operator secures a longer license period in Sweden, following their appeal against the decision made by the Swedish Gaming Authority to limit their licence period to two years, online.casino reports
Videoslots operating licence was extended to the 31st of December, 2023.
The two-year term was based on settlement between Videoslots and the UKGC
The Swedish Gambling Authority (SGA/Spelinspektionen) made the decision to grant Videoslots with only a two-year term gaming license, due to the previous settlement between the operator and the UK Gambling Commission over flaws in the due diligence process and in particular the source of funds process.
The flaws exposed by the UKGC in November 2018 showed insufficient source of funds checks by the operator on UK players with high deposit amounts.
It also found players was able to register and play using fake IDs.
Instead of getting a financial penalty by the Gambling Commission (which could have been much bigger) Videoslots agreed to settle and pay £1 million for the failings, and £12,000 for the Gambling Commission’s costs.
The SGA decided this was enough to limit the operators license term.
Videoslots, however, argued the UKGC found the operator had addressed the flaws found by taking proactive and timely measures, as well as being fully transparent and open
during the whole investigating.
“This makes it obvious that the company is a serious business that makes an effort to follow the regulations to which it is subject,” Videoslots appealed.
“The British supervisory case, therefore, cannot be considered a reason to deviate from the normal, five-year licence period.”
Videoslots also argued other casinos that had settled with the UK regulator in the past had been granted five-year licenses
. Furthermore, Svenska Spel, the operator owned by the Swedish state, was granted a license without any time limits even though they were fined by the SGA as recently as November 2018 for failings in their AML (anti-money laundering) processes.
The Swedish brick-and-mortar casinos “Casino Cosmopol” was then fined a total of SEK 8 million, but only ended up paying SEK 3 million after the penalty was reduced on appeal back in October.
The court agreed the violations were serious, which could be grounds for closer oversight by the SGA of the casino operator.
However, Thomas Kjellgren, the Swedish Alderman, acknowledged the operator had been truly transparent and open in the UKGC investigation and taken important measures to address the flaws in their systems. He meant the decision by the SGA was unjustified and not in proportion of the offence.
The Alderman ruled that Videoslots license will be extended and run from the 1st of January 2019 to the 31st of December 2023.
The SGA announced that they don’t have any intention of appealing the decision made by the Linnköping Administrative Court.