The regulator announced that it has initiated legal proceedings against Indigo, a Curaçao-licensed company, on suspicion of targeting Swedish customers without the required license. The investigation by Spelinspektionen revealed that both the Cashalot website and its affiliates used marketing materials in Swedish, indicating an intention to attract Swedish players. Despite not being blocked from signing up, this lack of restriction clearly demonstrates that Cashalot was indeed targeting the Swedish market. Indigo was given an opportunity to respond but failed to do so.
The applicability of the Gambling Act to online games depends on whether they are visibly aimed at the Swedish market. In line with their strategy for tackling unlicensed activity, the regulator’s first step is to order the operator to leave the market. Failure to comply results in fines, and if the operator continues to defy the regulations, the matter is escalated to the police. Spelinspektionen also has the authority to seek court injunctions that would prevent payment providers from processing transactions for these unauthorized sites.
This order to leave the market coincides with the country’s consideration of a significant change in its approach to unlicensed operators. A recent government report has recommended that the powers to combat illegal gambling should extend to any sites accepting Swedish customers without a proper license. This proposed approach is similar to the one introduced in the Netherlands when its online gambling market opened. Following that change, prominent operators such as Entain, Kindred, 888 Betsson, LeoVegas, and Casumo all announced their decision to block Dutch customers.
Since its establishment in early 2019, Spelinspektionen has ordered 22 unlicensed operators to exit the market, including 10 orders in June 2020 and three in May of this year.
