.svg)
The Swedish Gambling Authority has fined suppliers Panda Bluemoon Ltd and Hacksaw Studios AB for providing their software to two unlicensed operators.
Stockholm-headquartered Hacksaw Studios received a warning and a penalty fee of SEK2.6m (€226,000), according to the SGA’s announcement on May 27.
Israel-based Panda Bluemoon also received a warning but was handed a penalty fee of SEK700,000 (€61,000).
Both of the fined companies were awarded Swedish supplier licences in 2023.
The SGA checked selected websites in January 2024 operated by unlicensed companies to see if licensees were supplying them, which is when the violations were first caught.
Hacksaw Studios told the SGA that it had taken steps to try and geoblock its products so that its game software is only available for operators licensed in Sweden.
Hacksaw added that it believes that “a developer cannot take full responsibility for its customer's regulatory compliance and no developer can guarantee that operators will not attempt to make its software available in markets where the operator does not hold the necessary licences”.
However, the SGA determined: “Game software may not be manufactured, provided, installed or modified to these actors' websites as they lack the necessary licence, and Hacksaw Studios is therefore not allowed to manufacture/provide game software to this actor. It is therefore not enough to geoblock a certain game to such a website.”
Panda Bluemoon argued that the SGA could not expect gaming software providers to stop using dealers and intermediaries, as it blamed the issue on distribution company Mikai Tech for allegedly breaching its contract.
However, the SGA stated in its decision: “It is the licensee who is responsible for the game software not being provided to players without the necessary licence, the fact that the retailer has breached its agreement with Panda Bluemoon's distributor Mikai Tech Ltd does not change the judgment.”
Key considerations made by the regulator when determining the fine amount are the company’s annual turnover, the seriousness of the violation, and the action taken by the licensees to try and remedy the situation.
Since July 1, 2023, companies supplying Swedish gambling operators have been required to hold one or more licences offered by the SGA.
On October 26, 2023, the SGA sent letters to all licensed suppliers reminding them that they may not manufacture, provide, install or change game software for players without the necessary licence and warned it would be monitoring their supply of games.
The SGA issued its first fine for supplying an unlicensed operator on the country’s prohibition list to Yggdrasil Gaming in March 2024.
