Court Rules in Favor of ATG and Dismisses a Massive Fine
LISTEN TO THIS ARTICLE:Racing monopoly AB Trav och Galopp (ATG) has had the fine issued against it by the Swedish Gambling Inspectorate, Spelinspektionen, overturned in Sweden’s Administrative Court in Linköping.
The regulator had charged ATG with failures in handling its money laundering policies between January 2019 and December 2021. An investigation conducted by Spelinspektionen revealed various systematic shortcomings, particularly in interactions with eight accounts.
ATG was then issued a warning and ordered to pay a penalty fine of SEK6m ($554,191) by the gambling regulator. However, ATG contested the regulator’s fine, stating that it adequately carried out the appropriate risk-based actions during the relevant period.
The Administrative Court has now concluded that although there were some failings, they were not severe enough to warrant a warning and sanction fee. The court, therefore, overturned the judgment stating that the shortcomings did not reflect an increased risk of the company being exploited, including for money laundering.
Commenting on the development, ATG’s CEO, Hasse Lord Skarplöth, stated that the court ruling is a significant victory and raises several questions about Spelinspektionen’s strategy and aim of increasing the limit of sanction fees in future cases.
The decision raises a number of larger questions. Spelinspektionen has requested to raise the limit for sanction fees to over ten million kronor in future cases. It applies to Spelinspektionen’s strategy, which differs from the rest of the authority world – more time should be spent on supporting rather than punishing the actors within the license system. And resources should be spent on defending the Swedish licensing market and pursuing unlicensed gaming companies.
Spelinspektionen has three weeks to submit its own appeal against the Linköping Court’s decision.
New Spelinspektionen Powers
As of July 1, the Swedish online gambling market has implemented a new set of measures that will enhance the authority of Spelinspektionen. The regulator now has the power to access gambling services using a hidden identity to monitor operators targeting Swedish players.
The regulator can also create new rules to mandate payment providers to supply the information it needs to block unlicensed gambling payments.
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