Videoslots Ltd Warned for Avoiding Deposit Limit Rules
Sweden’s gambling regulator, the Spelinspektionen, has announced that it has warned the online casino licensee Videoslots Ltd over its attempts to avoid the legal limits on online casino deposits.
According to the regulator, Videoslots has been allowing players to reverse old withdrawals, which essentially allows them to deposit more than the weekly limit of SEK 5,000, which has been imposed since last July.
Spelinspektionen discovered the scheme during a check into how the operator was complying with the new limits. The weekly limit was introduced to help ensure that Swedes did not gamble too much when bored due to coronavirus related restrictions.
The operator has been enforcing the limit for new customers, but existing customers have been able to reverse withdrawals that were processed as long as two months ago. This gave customers the ability to top up their accounts with far more than the weekly limit.
Related:
- Tougher gambling restrictions may come to Sweden
- Sweden investigate how to defeat black market gambling
In its defense, Videoslots has said that they will be challenging the new deposit limits in court. However, Spelinspektionen said that this does not exempt them from having to comply with the regulations. The regulator has given the operator three weeks in which to change its ways otherwise it will be hit with weekly penalties of SEK 250,000.
This is not the first time that Spelinspektionen has taken action against an operator for breaking the rules. In December, the state-run AB Trav och Galopp came under fire for allowing sports bettors to set personal deposit limits above SEK 5,000.
In the meantime, new data released by Kantar Sifo has shown that while five Swedish-licensed operators were in the country’s top 30 advertisers in terms of spending last year, four of them decreased their spending in 2020. Cherry AB, part of the ComeOn Group, was the biggest gambling marketer last year spending SEK 550 million; however, this was down almost 40% from the year before.
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