The Administrative Court in Linköping, Sweden, has overturned a SEK 6m (€500,000) sanction fee that was issued by Spelinspektionen to AB Trav och Galopp.
ATG appealed the fine by the Swedish gambling authority, contesting the size and warrant of the authority’s penalty related to deficiencies in its handling of money laundering controls between 2019 and 2021.
Spelinspektionen noted systematic shortcomings within its investigation, highlighting interactions related to eight customer accounts. ATG contested the claims, stating that suitable risk-based actions had taken place during the relevant period.
The Administrative Court has agreed with ATG, noting that while there were shortcomings, they weren’t serious enough to warrant a warning and sanction fee. As a result, Spelinspektionen’s sanction fee has been overturned.
Hasse Lord Skarplöth, CEO of ATG, highlighted the decision as “a very important victory” for the company while also questioning Spelinspektionen’s request to raise the limit of penalty fees in future cases.
Lord Skarplöth stated: “Today’s decision also raises a number of larger questions. The Swedish Gaming Authority has requested to raise the limit for penalty fees to over SEK 10m in future cases. My opinion is that that request should be strongly questioned after today’s decision from the Administrative Court.
“The same applies to the Spelinspektionen’s strategy, which differs from the rest of the world of authorities – one should spend more time supporting than punishing the actors within the licensing system. And put the resources into defending the Swedish license market and chasing the unlicensed gambling companies.”
Spelinspektionen has three weeks to appeal the verdict to the Administrative Court of Appeal in Jönköping.
