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Rehabilitated: Operator Didn't Break Swedish Loss Limits Law

8 April 2021, 16:12
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The Linkoping's Administrative Court decided that Spooniker Ltd, a digital gambling operator, didn't violate loss limit rules. It means that the fines against the operator from the side of the Swedish Gaming Inspectorate were illegal. Login Casino follows the most interesting legislative news in gambling, describing the lawsuit in simple terms.

Rehabilitated: Operator Didn't Break Swedish Loss Limits Law

Lawsuit preconditions

The coronavirus outbreak had a huge impact on human psychology and well-being, forcing many gambling regulators to review requirements. One of the most common decisions in the sector was providing daily and monthly loss limits so people didn't spend too much on risky entertainment. The Swedish Gaming Inspectorate, Spelinspektionen, also joined the initiative and imposed restrictions on the level of 5000 SEK per week for online casinos.

However, the wording of the limit made a difference. Spooniker Ltd, Kindred's daughter company, forced their users to set weekly limits for casino games at the needed level, but the clients could still deposit more for betting. It led to the simple scheme where players were depositing more than 5K SEK per week but then returning the limit to the required point and spending that money for online casinos.

The turning point of the case

When Spelinspektinonen found that players were depositing more than five thousand Swedish kronor weekly, they issued the operator for one million of local currency every seven days and forbade using the tricky scheme.

However, Spooniker went to the court and stated that the regulator broke the rules. Interestingly, the Swedish judiciary decided that the operator was right because the rule regulated loss limits for casino deposits only. Moreover, clients could bring more money for other purposes, forming a bigger bankroll, which in turn, could be spent in any desired way, including online casinos. So, the court approved the operator's actions and set that the regulator was wrong with its injunctions. Spelinspektionen still has the right to appeal to the verdict.

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