bet365 Sweden: SEK44m Fines Upheld

by John Garrett
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SEK44 million in fines, but Swedish licenses preserved: bet365 has been penalized without losing its Swedish licenses, as confirmed by an appeal court upholding warnings against the operator’s two Hillside companies. Hillside (Sports) ENC is facing a fine of SEK40 million, while Hillside (Gaming) ENC is facing a fine of SEK4 million. Despite the penalties, the licenses are still intact after the regulator’s examination and the implementation of corrective measures, as reported by CasinoBeats and iGamingToday.

For esports bettors, this outcome is significant as it highlights a major case of player protection resulting in substantial financial sanctions and ongoing supervision, rather than bet365 being forced out of the Swedish market. This decision differs from the company’s license renewal in the Netherlands, with Sweden’s ruling based on past compliance issues.

The dispute revolved around deposit settings and customer care

The investigation focused on the period from January 1, 2019, to April 19, 2022. During this time, customers had the option to select a deposit setting without a specific limit, instead of choosing a defined cap. While bet365 argued that there was an invisible technical limit of SEK500 million in place, the Swedish gambling regulator, Spelinspektionen, deemed that a limit that customers couldn’t see or choose did not meet the requirement for a player-selected cap.

The regulators also assessed the companies’ responsiveness when signs of problematic gambling behavior were evident. The investigation went beyond just the issue with the settings menu, as it also delved into whether the companies’ customer care responses were adequate when indicators of risk emerged. The distinction between automated warnings and meaningful responses is crucial in cases involving player protection penalties.

Appeals result in reduced fines and ongoing safeguards

The current fines are lower than the initial amounts imposed by Spelinspektionen in 2023, which were SEK65 million for Hillside (Sports) ENC and SEK14 million for Hillside (Gaming) ENC. A lower court reduced these fines in June 2024 to SEK40 million and SEK4 million, respectively. The Administrative Court of Appeal has upheld these reduced penalties and warnings, with the companies’ appeals failing to overturn the findings on deposit limits and customer care.

Furthermore, the companies are required to continue implementing additional player protection measures. These measures include monitoring customers who lose more than SEK10,000 in a month, enhancing protections for vulnerable players and young adults aged 18 to 24, and closely monitoring individuals who return to gambling after self-exclusion. Similar issues of accountability arise when operators do not adhere to self-exclusion regulations.

Corrective measures prevent license revocation, but scrutiny remains

Spelinspektionen characterized the breaches as serious and systematic, potentially leading to a review of the licenses, including possible revocation. However, the companies took corrective actions during the investigation, which prevented the withdrawal of their operating licenses. Despite this, the warnings, SEK44 million in fines, and monitoring requirements remain in place.

Moving forward, the operator’s Swedish operations must uphold the mandated reviews and protections, particularly focusing on customers who resume gambling after self-exclusion.

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