Spelinspektionen Issues SEK12m Fine to Videoslots for Safety Failings
The Swedish Gambling Authority, Spelinspektionen, has issued a warning and a SEK12 million (€1.09 million) fine to Videoslots due to the company’s failures to adequately protect players from excessive gambling.
LISTEN TO THIS ARTICLE:In a ruling delivered on this month, the regulator revealed that an investigation launched in spring 2024 uncovered systematic deficiencies in the Malta-based operator’s responsible gambling practices, in breach of Chapter 14 of the Gambling Act. Now rebranded as Immense Group, Videoslots was found to lack effective systems for identifying and intervening in cases of risky gambling behavior.
Multiple Players Exhibited Signs of Problem Gambling
Spelinspektionen reviewed the activity of 12 players, five of whom were aged between 18 and 24. All exhibited signs of problem gambling, including extended play sessions, frequent deposits, and in some cases, losses of up to SEK470,000 within three months.
One customer reportedly placed bets totaling over SEK4 million in a single month, while another made 28 separate deposits in one day. Despite automated alerts, the company often relied on generic pop-up messages and emails and delayed personal intervention. According to the regulator, this passive approach allowed customers to continue gambling unchecked, rather than imposing limits or account suspensions as required.
The fact that the violation was partly due to systematic shortcomings in the company’s work with monitoring and follow-up and that the company has demonstrated a passive approach in this regard also means that the violation is serious.
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Videoslots Claims Regulations Were Unclear
In its defense, Videoslots argued that it was operating within unclear regulatory boundaries and cited privacy rules that restricted the use of financial data. The company also pointed to internal controls, such as a SEK15,000 monthly net-loss limit for younger users, and claimed over 1,000 player accounts had been restricted during the relevant period.
However, Spelinspektionen rejected these arguments, stating the fine reflects the seriousness and duration of the failures. While Swedish law permits fines up to 10% of annual turnover, Spelinspektionen deemed SEK12 million an appropriate penalty.
Videoslots intends to appeal the decision and has three weeks to do so. The company has a track record of successful appeals and previously reduced a fine related to anti-money laundering shortcomings.
In response to the fine, Videoslots has reiterated its commitment to responsible gambling and criticized the regulator’s expectations as vague and excessive. The company noted that all players flagged by the Swedish Gambling Authority had reduced their activity following interventions. It also argued that the decision sets a precedent based on assumptions not explicitly supported by law, such as treating monthly deposits over SEK10,000 as inherently problematic.
The operator said that it has invested heavily in detection systems and player safeguards and called for clearer legal standards to ensure a fair and consistent regulatory framework.
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