Videoslots in Hot Water Over Responsible Gambling Lapses
Swedish Authorities Impose $1.26 Million Penalty on Videoslots
In a turn of events, the gambling tycoon Videoslots is facing a hefty fine of approximately $1.3 million from Sweden's gambling regulator, Spelinspektionen, over alleged shortcomings in its responsible gambling (RG) standards. The Swedish Gambling Authority has laid out the charge following an investigation, citing several instances of RG failures, particularly in monitoring and curbing problematic gambling behavior.
Videoslots' Brush with Penalty in Sweden
Citing systemic flaws, the Swedish Gambling Authority imposed a penalty of SEK12,000,000, equivalent to around $1.3 million, against Videoslots on April 22. The regulator's investigation began early in 2024, focusing on possible failures in the company's RG protocols.
In the probe, examiners scrutinized the gaming histories of 12 individual customers, five of them aged between 18-24. The regulator claims that Videoslots failed to recognize signs of compulsive gambling in these individuals.
The shortcomings, according to the Spelinspektionen, stemmed from "systematic failures" in Videoslots' approach to check and address potential issues. For instance, a person was reportedly permitted to deposit over SEK4 million, or roughly $433,000, across 28 transactions in a single day. Videoslots' intervention in this instance, through automated messages, was deemed inadequate by the investigators.
Videoslots' Rebuttal and Call for Clarity
Videoslots has refuted the accusations, arguing that the Swedish Gambling Authority was not transparent enough in its methodology. The company also criticized the guidelines, calling them vague at best.
Despite restricting more than 1,000 accounts during the period of investigation, Videoslots felt the imposed penalty was too harsh. However, the company has announced its intent to challenge the decision in an administrative court.
Videoslots has previously successfully appealed another fine of SEK9 million and reduced it to SEK4 million. The company continues to face operating conditions that it believes are unfair.
Image credit: Unsplash.com
Additional Insights:
- The allegations against Videoslots span a period of approximately three months from the beginning of the regulator's investigation in early 2024.
- The Swedish Gambling Act sets out rules for operators to follow in their endeavor to protect vulnerable players. Chapter 14, Section 1 specifically outlines the duty of care rules that are expected of licensed entities in the market. Failure to adhere to these rules can result in fines or other penalties.
- Since late 2020, the Swedish Gambling Authority has been especially vigilant in cracking down on operators that deviate from responsible gambling practices, with fines and suspensions being common penalties for violators.
- Videoslots has since changed its name to Immense Group.
- The watchdog, Spelinspektionen, imposed a SEK12,000,000 fine on the casino-and-gambling operator, Videoslots, in Sweden, citing shortcomings in their responsible gambling standards.
- The penalty was a result of an investigation by Spelinspektionen, which found that Videoslots had failed to adequately address problematic gambling behavior and had permitted a customer to deposit over SEK4 million in a single day.
- Videoslots has appealed the fine, arguing that the Swedish Gambling Authority was not transparent enough in its methodology and criticizing the guidelines as vague.
- Despite the fine, Videoslots continues to operate in Sweden and has previously successfully appealed another fine, reducing it from SEK9 million to SEK4 million.
