Spelinspektionen Blocks CGG Entertainment Over Mystery-Box Lotteries
Sweden’s gambling regulator has ordered an immediate ban on a Cyprus-based operator for offering mystery-box lotteries to Swedish players.
LISTEN TO THIS ARTICLE:Spelinspektionen, the Swedish Gambling Authority, has issued a banning order against CGG Entertainment, the company behind the cases.gg platform, after determining that the site was accessible to users in Sweden and displayed Swedish-language elements. The regulator said the platform allowed users to buy mystery boxes and enter lotteries that could yield prizes – activities Spelinspektionen considers gambling when marketed to Swedish consumers without a licence.
According to the authority, investigators were able to reach the operator’s website from a Swedish IP address and observed Swedish-language text and a Swedish flag during access, indicators that, under current Swedish law, signify the site is aimed at the Swedish market. That, the regulator said, places the offering within the scope of the Gambling Act and requires a Swedish licence.
CGG Entertainment told Spelinspektionen that it would comply with the order. "The company states that they intend to comply with Swedish legislation and has, as a measure, blocked all Swedish users from the platform, as well as card payments from Sweden", the regulator said in its statement. However, the authority later reported that a follow-up check still found Swedish-language content present on the site.
The ban is the latest example of intensified enforcement activity by European regulators against offshore platforms using so-called loot-box or mystery-box mechanics. Those mechanics – where players pay for a chance to receive a concealed prize – have attracted regulatory scrutiny across the EU amid concerns they constitute games of chance rather than mere retail promotions.
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The case comes as Sweden reviews its gambling statute. A recent government review recommended removing the "directional criterion" – a test that previously focused on whether a product was specifically directed at Sweden – and replacing it with a "participant perspective". Under the suggested approach, the decisive factor would be whether individuals physically in Sweden can participate in the gaming offer.
That shift would require online gambling companies to take active technical and commercial steps to prevent Swedish participation if they wish to operate outside the Gambling Act. Typical measures would include robust geoblocking, IP- and device-based checks, and the blocking of payment methods from Swedish issuers. Spelinspektionen’s findings in the CGG case emphasise how regulators are interpreting current rules and signal tougher expectations if the law is amended.
An industry lawyer who reviewed the regulator’s action, speaking on condition of anonymity, said: "Regulators across Europe are moving to make the practical availability of a service the touchstone of jurisdiction. Firms offering mystery boxes must assume that showing any local language or accepting local payments will be used as evidence of targeting. Operators need to design exclusion mechanisms that are demonstrably effective, not just nominally implemented."
International precedent already points in this direction. Several EU member states have taken a strict view of loot-box mechanisms in recent years, and the European Commission has urged national authorities to assess whether novel product formats fall within existing gambling rules.
For consumers, the immediate consequence is that players in Sweden should no longer have access to cases.gg. For operators, the CGG decision serves as a reminder that regulatory risk is rising for offshore platforms using game-like commercial mechanics to monetise chance-based prizes.
What Operators Should Do Next
Operators that want to avoid falling foul of Swedish regulation should urgently audit marketing, language settings, and payment infrastructure to ensure they do not enable participation from Sweden. That process should include independent technical verification of geoblocking, clear records of excluded IP ranges and payment blocks, and prompt remediation when national regulators flag non-compliance. Without these measures, firms risk further enforcement action, financial penalties, and blocking orders that could be extended through payment service providers and advertising networks.
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