Online gaming firm Videoslots has secured a notable legal success in Sweden, becoming the latest company to successfully fight for a full-period licence to operate in the Swedish market.
Videoslots applied for a full five-year licence. But the Swedish regulator Spelinspektionen initially granted them only a two year licence.
That decision, which has now been overturned by a court in Sweden, was made due to previous disciplinary action taken against Videoslots by the UK Gambling Commission (UKGC).
That related to a November 2018 case, in which the UKGC uncovered failings in the firm’s anti money laundering policies and in its procedures related to social responsibility. A settlement of £1 million was reached in that case, with the money going towards a project to help tackled problem gambling.
The Swedish regulator had ruled that this was enough to deny the company the full five-year licence, but on Monday the Administrative Court disagreed.
In its appeal, the company had pointed to the fact that the UKGC had reported that they had cooperated fully with the UKGC investigation, had shown insight into the failings identified and had taken quick action to tackle the problems that came to light. They argued in the court, that the UKGC decision should not have been a factor in deciding on their Swedish licence application. They also pointed out that Spelinspektionen gave five year licences to a number of other firms who had been similarly fined in other jurisdictions. These include Casino Cosmopol, which was awarded a five-year licence despite its parent company Svenska Spel being punished for procedural failings.
In this instance, the court sided with Videoslots. They ruled that the Videoslots licence should be extended until the end of 2023.