ComeOn hit with record SEK175m in fines over Swedish bonus breaches

ComeOn Group has been hit with a record SEK175m (£15.1m) fine from the Swedish Gambling Authority (SGA) after investigators found that four of its licensed brands were offering repeat bonuses to consumers. The brands on the wrong end of the enforcement action include Casinostugan (SEK25m), ComeOn (SEK35m), Hajper (SEK50m) and Snabbare, which was issued with the largest fine of SEK65m. The fines represent the largest total penalty issued to one operator since regulation of the Swedish market back in January 2019. In all cases, the SGA also issued a warning in connection with the violations of Swedish gambling law regarding repeat bonus offers during the first half of 2019. ComeOn admitted it had offered gifts to customers on the brands but asserted its belief that the practice was in line with existing marketing practices in force during the period. The operator defined the gifts as “a transfer of ownership to something without that the recipient gives something in return, a so-called voluntary transfer of ownership or asset transfer without the requirement for consideration”. The gifts were identified by SGA regulators as so-called supplementary deposits totaling SEK75,730 across the four named brands, as well as several free spins. In February 2019, SGA regulators moved to clarify the rules on bonusing by banning operators from offering repeated bonuses and imposing strict rules on the practice. These measures have since been followed up by the implementation of a weekly bonus cap of SEK100 (£8). Investigators reviewed ComeOn brands as part of a wider investigation into whether the operator’s licences should be extended from two years to five following an appeal against an earlier SGA decision. SGA regulators limited ComeOn’s seven operating licences to two years rather than the standard five-year term, citing uncertainty about its organisational structure. Regulators claimed the structure might potentially allow the firm to offer more bonuses than regulations allow, an assertion that has subsequently been proven. ComeOn has been on the receiving end of Swedish fines before for offering betting on matches involving underage players. It is currently appealing against those fines in the Swedish courts.