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Swedish Court Grants LeoVegas Approval for 5 Year License
October 10, 2019 Alex Hoffmann
Provider of online gaming services and sports wagering from Sweden, LeoVegas, has been given the right to operate with a five-year license in its home country. The previous decision of Sweden’s gaming regulator Spelinspektionen to limit the mobile iGaming company to a two-year permit has been overruled by the istrative Court of Linköping.
Despite the regulator’s previous plans to offer shor-term licenses to operators who violated the re-regulated igaming market, LeoVegas will continue to swimmingly provide table games, video slots, progressive jackpots, video poker and live betting in the country.
The operator was penalized by the British Gambling Commission in May 2018 for misleading advertising and poor handling of customers, receiving a fine of £600,000.
During the investigation, it has been determined by the UKGC that LeoVegas “produced 41 misleading adverts and failed to return funds to 11,205 self-excluded customers.” Apart from these violations, the operator has also promoted marketing material to 1,894 self-excluded customers, out of which 413 returned to gambling.
Apparently, the failings were caused by a computer glitch, invisible to the company’s safety procedures…
…which retained almost £1 million of all balances not returned to the customers. The company later accused its marketing s for not returning the money in a timely manner.
Spelinspektionen Not Fit to Investigate
In its appeal against the 2-year gaming license within the Swedish territory, LeoVegas argued that one report by the UKGC is not enough to form the final decision. The operator also implied that the last time it violated the regulations was in 2016, characterizing the Swedish regulator unfit to perform its investigative duties.
“The istrative Court believes that these violations, both collectively and individually, are serious. They may also be considered to provide grounds to assume that there is a risk related to the company’s ability to comply with the requirements imposed on gambling activities under the Gaming Act.”
The Court officials added:
“However, this must be contrasted with the fact that the more serious violations are attributable to 2016, that is, almost three years before Spelinspektionen made its licensing decisions. In addition, nothing has emerged that indicates that the company attempted to withhold information from the Gambling Commission, or that the company would not have made corrections in principle immediately after it became aware of the deficiencies.”
In addition to this ruling, the istrative Court of Linköping has also overturned Spelinspektionen’s decision to limit four licensees to one-year permits in July 2019.
LeoVegas on The Right Path
In spite of the fact that several gaming brands are leaving the market, chief executive, Gustaf Hagman is convinced that the company will continue a sustainable growth in Sweden. Thanks to its eight gaming licenses, the operator will proceed to deliver betting services to international markets and meet new targets as well.
Hagman says:
“After our investments in regulatory compliance and our experiences from regulated markets, this decision is a receipt that we are conducting a professional business. I am proud of our teams that have delivered this in the difficult-navigating environment in which we operate. The extended license gives us continued peace of mind in the Swedish market, where we take market shares month by month.”
Vala Karimi, general counsel for the operator greeted the decision of the Swedish istrative Court and agreed that extensive requirements regarding responsible gaming are vital for better consumer protection.
Source:
“Swedish court grants LeoVegas five-year operating licence”, igamingbusiness.com, October 8, 2019.
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It’s tough to stay in business when you’re a leading gaming operator in Sweden. They should get involved in charity work to redeem and give back to the community.