The Supreme Administrative Court of Sweden has made a significant statement regarding the penalty fee imposed on gambling operator Genesis Global. In March 2019, Genesis Global was fined SEK 4 million ($388,968) after an investigation revealed its failure to integrate its white-label brands into the Spelpaus self-exclusion system. The court’s statement now suggests a potential shift in calculating penalty fees based on gross turnover rather than gross gaming revenue (GGR). This change could have implications for past and future decisions related to penalty fees in the Swedish gambling industry.
Penalty Fee Calculation Method:
Traditionally, penalty fees in Sweden have been based on gross turnover, which typically accounts for more than 90% of the revenue generated by gambling operators. However, the Supreme Administrative Court’s statement indicates a consideration to base penalty fees on GGR instead. The Swedish Trade Association for Online Gambling (BOS) has long advocated for this change in calculation method.
Potential Impact and Investigation:
The court’s statement may have a prejudicial effect on both upcoming decisions and any previous decisions made after the regulatory changes in 2019. An investigation is already underway to examine the implications of this potential shift in penalty fee calculation. The outcome of this investigation could shape the future regulatory framework for penalty fees in the Swedish gambling industry.
Gustaf Hoffstedt’s Perspective:
Gustaf Hoffstedt, the Secretary General of BOS, expressed his support for the court’s decision, emphasizing the significance of basing penalty fees on GGR rather than gross turnover. Hoffstedt believes that only the GGR is at the disposal of gambling companies and can be used to pay penalty fees, while the remaining funds belong to the gamblers themselves. This perspective aligns with BOS’s long-standing position and its commitment to promoting fair and effective regulations in the Swedish online gambling market.
Implications for Genesis Global and the Industry:
The potential change in penalty fee calculation method could have both financial and operational implications for Genesis Global and other gambling operators. Shifting from gross turnover to GGR as the basis for penalty fees would ensure that companies are charged based on their actual available revenue. This change could lead to fairer and more proportionate penalties and create a more balanced regulatory environment for the industry as a whole.
The Swedish Supreme Administrative Court’s statement regarding the possibility of basing penalty fees on GGR instead of gross turnover marks a potential shift in the regulatory landscape for the gambling industry in Sweden. The investigation underway will determine the extent of the impact on past decisions and the future framework for penalty fee calculations. The support from BOS and its Secretary General, Gustaf Hoffstedt, reflects the industry’s desire for fair and reasonable regulations. Ultimately, the outcome of this debate will shape the landscape for penalty fees in the Swedish gambling industry, ensuring a more equitable approach that considers the financial realities of gambling operators.