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Swedish Gambling Regulator Bans Three Unlicensed Operators

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The Spelinspektionen, Sweden’s gambling authority, has announced that it has banned three gambling operators, two of which were operating without a license and a third that was not only unlicensed, but also actively advertised to Swedish audiences.

The regulator said that both Newera Frozen PTE Limited and Aprodi Ltd were offering video game skin gambling without first obtaining the necessary license. Spelinspektionen explained that the companies were running unlicensed games of chance giving players the chance to bet with video game accessories.

Skin gambling has been rapidly growing in popularity with the spread of esports, and it gives players the chance to win video game accessories worth thousands of dollars. The practice has been the subject of controversy due to its potential to appeal to underage players.

Operators Must Take Care with Targets of Advertising

The third company to be banned, Galaktika NV, argued that it was not targeting Sweden in particular but the entirety of Europe. However, Spelinspektionen said that it should be more careful with its online marketing. This should serve as a warning to other operators advertising within Europe.

The regulator said that it will continue to publicize its regulatory actions together with its decisions and rulings on its website.

Several Operators Fined for Regulatory Violations

As well as banning these three companies, Spelinspektionen recently fined a number of additional gambling operators and providers.

One of those fined was Svenska Spel, Sweden’s state-owned operator. It was hit with a $9.5 million fine for a number of responsible gambling failures. The authority found that the company’s online division, Svenska Spel Sports & Casino, was not taking appropriate steps to protect at-risk players and allowed them to lose vast sums of money.

Yggdrasil was also hit by a fine of SEK300,000 for providing its software to an unlicensed operator. It was the first time Spelinspektionen had issued a fine of that nature, in keeping with the country’s new B2B licensing requirements.

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