Online gambling operator Global Gaming announced Tuesday that it had its bid to have its Swedish operations resumed rejected by an Administrative Court of Appeal.
The Swedish Gambling Authority revoked the operational license of Global Gaming’s Sweden-facing subsidiary, SafeEnt, on June 17. Prior to that, SafeEnt operated the Ninja Casino and Spellandet brands in the newly reorganized Swedish gambling market.
Spelinspektionen said that it decided to revoke SafeEnt’s license after discovering serious violations in the way the company conducted gambling activities in the country, including shortcomings in its responsible gambling and anti-money laundering practices.
Global Gaming immediately appealed the decision, arguing that after discussing the violations discovered with the regulator, it has taken the necessary measures to make sure its operations were fully compliant with Swedish law. The company further pointed out that it was left with the impression that it was indeed compliant with the local rules and regulations.
Global Gaming was ordered to cease its Swedish operations while its license revocation was under review. The company appealed that order, as well, saying that its business and its shareholders were suffering “a great deal of damage” every day it was not operational in Sweden.
Late last month, the Administrative Court of Linköping ruled that Spelinspektionen was right to ask Global Gaming to discontinue its operations in the local market.
The Latest Court Ruling
Following that first ruling, Global Gaming brought its appeal for injunctive relief to the Administrative Court of Appeal. In a ruling issued Tuesday, the court rejected the appeal, thus effectively siding with Spelinspektionen.
Commenting on Tuesday’s court decision, Tobias Fagerlund, CEO of Global Gaming, said that they are “of course disappointed by the ruling” and that it is “still our conviction that we will prevail at the end of the process.” Mr. Fagerlund who stepped in as acting CEO of the online gambling group earlier this year was recently promoted to assume the position permanently.
The company said it is currently considering options to file an appeal for injunctive relief with the Supreme Administrative Court.
Spelinspektionen welcomed the Administrative Court of Appeal’s decisions, saying in a Tuesday statement that it believes that the risks for Swedish gambling customers would be great if SafeEnt was allowed to conduct gambling activities in the country.
The revocation of the license of Global Gaming’s subsidiary was the most severe of a series of punishments undertaken by Spelinspektionen in the months after Sweden’s new gambling law took effect.
In another recent instance, the Swedish gambling regulator issued six- and seven-figure fines to eight gambling operators for handling bets for sporting events that featured a majority of players under the age of 18.
Gaming Innovation Group was one of the group of eight operators. The company announced Tuesday that it has suspended temporarily its sports betting operations in Sweden, saying that the country’s gambling regulations were “too open for interpretation” and lacked in clarity.
GiG further revealed that it has reached out to Spelinspektionen asking to be provided with much-needed clarification of the rules and that its operations would remain suspended until it receives more information by the regulator on how certain aspects of the regulatory framework should be interpreted.
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