SkillOnNet facing SEK14m Swedish penalty after court appeal defeat
PlayOJO operator is also reprimanded for KYC failings and ordered to submit report by March 2021
Malta-licensed online gaming provider SkillOnNet has lost its appeal against the Swedish Gaming Authority (SGA) and stands to receive a SEK14m (£1.18m) penalty for violating bonusing rules dating back to June 2020.
The supplier had launched an appeal with the Administrative Court in Linköping, only for a judge to announce its support for the regulator’s interpretation of the provisions within the Gaming Act.
The firm was also found to be providing lotteries not covered by its licence, with issues being identified across a variety of sites including redkings.com, playojo.com and slotsmagic.com.
At the time, SkillOnNet contested the SGA’s interpretation of the Swedish Gambling Act, claiming its fine was “disproportionately severe”, and suggesting that the SGA had declined repeated offers to meet with SkillOnNet to further explain its position in a constructive dialogue.
“We have had ongoing dialogue with the SGA since February in which we explained our reasoning for the types of offers we had. We felt our reasoning was solid, and justifiable within the wordings of the gambling act. Certain elements were also backed up by legal opinion,” the firm said in a statement following the original fine.
“Our experience in the other European jurisdictions in which we hold licences has taught us that a collaborative relationship between the regulator and licensee, built on constructive and informative dialogue, results in a healthy, compliant and equal playing field for the industry. We hope to see the same in the Swedish market as it matures to become an established regulated market.”
As part of an investigation, the regulator also discovered shortcomings in SkillOnNet’s player checks to determine whether they are considered a permanent resident in Sweden.
Investigators found that SkillOnNet allowed registrations from players using Swedish IP addresses, something which could be manipulated through the use of VPN software as well as deficiencies in its ongoing checking of players.
According to the Swedish Tax Agency’s legal guidance, the concept of “permanent residence” means a continuous period of residence in the country of six months or more, something which online gambling firms are required to check periodically.
The supplier will be required to submit a report to the regulator by March 2021, detailing how it is successfully performing KYC checks against players.