Sweden’s gambling regulator Spelinspektionen has issued a SEK300,000 (PS22,464/EUR26,199/$28,345) penalty fee and a warning to Yggdrasil for allegedly supplying gaming software to an unlicensed company operating in Sweden.
Yggdrasil was granted its license on March 22, 2023. It was able to produce, install and supply gaming software for Swedish online games. This license expires 20 June 2028.
According to the regulator, it started its investigation in 2024 on 16th January when it investigated websites run by non-licensed operators. According to Spelinspektionen, it is believed that Yggdrasil supplied one of the websites.
It is a violation of section 6 in chapter 11 of the Gambling Act. The section states that licensees of game software must not supply software to anyone who does not have a gambling licence.
Yggdrasil responded to the report by stating that the problem had been corrected on 23 January, 2024. The company said that the violation was due to an unresolved contract with a retailer. Yggdrasil stated that they no longer manufacture, supply, install or change gaming software without the required licence.
Although the regulator noted that Yggdrasil complied, it added that all licensees are expected to do so.
The decision states that “Yggdrasil took immediate corrective actions and removed all games, and other assets owned by Yggdrasil on the site in question. This has ceased violation ever since the Gaming Authority notified them.”
The collaboration can’t be considered active differently than one would expect from an organization that chooses to conduct licensed activities with supervision.
The mitigating circumstance does not overpower the severity of the offence in a manner that can make it appear minor or excused. The Swedish Gaming Authority has concluded that this violation is grave.
The decision to issue a warning or fine
Spelinspektionen decided that Yggdrasil would receive a warning rather than have its license revoked in Sweden. The penalty is combined with this.
Fees must not be less than SEK 5,000, and cannot exceed 10% of the previous financial year’s revenue. Yggdrasil had net sales of EUR514,566 (SEK5.8m) in 2023, which is the equivalent to SEK580,000. The fee was therefore as high at SEK580,000.
Yggdrasil did not respond publicly to the warning or penalty fee.
Spelinspektionen has taken a series of actions to ensure compliance. Casino Cosmopol received a SEK2m fine in December for failings related to anti-money laundering. Svenska Spel was also warned by the regulator at that time.
Casino Cosmopol, according to regulators, “failed to work in several areas with respect to customer knowledge” when it comes to AML.
Spelinspektionen banned Moonrail Limited in November 2023, for not having a license. The websites of both operators were found to target Swedish clients. The information included the Swedish version of the website’s terms and conditions and their marketing material.
