Administrative Court annuls Swedish Gambling Authority’s decision against Svenska Spel
The Administrative Court in Linköping has annulled the Swedish Gambling Authority’s decision regarding a warning and sanction fee against Svenska Spel Sport & Casino AB.
In March 2024, the Swedish Gambling Authority awarded Svenska Spel Sport & Casino AB a warning and an administrative fine of SEK 100m regarding an inspection of the duty of care in 2021. Svenska Spel then appealed the decision and the Administrative Court in Linköping has now announced that the court annuls the Swedish Gambling Authority’s decision regarding the warning and sanction fee.
Fredrik Wastenson, President and Business Area Manager of Svenska Spel Sport & Casino, said: “It is gratifying that the Administrative Court upholds our appeal and annuls the Swedish Gambling Authority’s decision. We appealed because we believe that the sanction fee is disproportionate in relation to the shortcomings and because there is a need to create greater clarity in the interpretation of the duty of care. We believe that the authority may only take measures that are supported by the legal system, the so-called principle of legality, which the court has also stated.”
The Swedish Gambling Authority had conducted an audit of Svenska Spel and conducted a closer examination of ten customers who have lost the most money on gambling during the period. It decided that Svenska Spel did not work sufficiently or proactively with regard to the company’s duty of care. It said Svenska Spel had taken a passive approach to its duty of care and had not been able to counteract the damage that excessive gambling can cause. The Inspectorate assessed that this was a serious violation and that a warning was an appropriate and necessary intervention measure. To underline the seriousness of the violation, the Swedish Gambling Authority has chosen to combine the warning with an administrative fine of SEK 100m.
The new ruling stated: “The Administrative Court does not agree with the Swedish Gambling Authority’s assessment with regard to warnings and sanction fees. In its review, the Court takes its point of departure in the so-called principle of legality, which means that an authority may only take measures that have a basis in the legal system. A violation of the responsible gaming rules in the Gambling Act can therefore only lead to liability if it is sufficiently clear to the individual what he or she has had to do to avoid the sanction, but has failed to do so.
“The Court believes that the fact that the customers have made large losses indicates that they have had excessive gambling. At the same time, the court notes that Svenska Spel has taken several responsible gaming measures against the ten customers before, during and after the period covered by the supervision, including certain access restrictions and restrictions. The Administrative Court understands the Swedish Gambling Authority’s views that it can be questioned whether the measures taken by Svenska Spel in all cases have been sufficient to counteract the harmful effects of excessive gambling and whether they have been taken quickly enough. At the time of the supervision, however, there were no concrete rules and practices for the licensees to relate to in terms of what measures needed to be taken in order to fulfil the duty of care in accordance with Chapter 14. 1 of the Gambling Act, and when these measures would be taken in such a case. The assessment of whether it is right to intervene with a warning and a fine must therefore be characterised by restrictiveness in order to be compatible with the principle of legality.”
