The Swedish Gambling Authority (SGA) has granted Videoslots, a prominent operator in the Swedish market, a five-year extension, allowing the company to continue its operations until the close of 2028. This development follows Videoslots’ presence in the regulated market since 2019, where it operates both its flagship brand and the more recent addition, Mr. Vegas.
Extension Amidst Compliance Issues:
While Videoslots celebrates the extension, it comes against a backdrop of compliance challenges. Notably, the SGA recently imposed a SEK 9 million ($810,000) penalty on Videoslots due to deficiencies in its anti-money laundering (AML) protocols. The investigation revealed vulnerabilities in monitoring customer activities, with specific cases highlighting inadequacies in scrutinizing significant deposits and withdrawals.
Comments from Videoslots:
Ulle Skottling, Deputy CEO at Videoslots, expressed confidence in the company’s business and compliance practices. He welcomed the SGA’s recognition and ongoing confidence in Videoslots, emphasizing that the decision aligns with the operator’s plans for 2024.
SGA’s Enforcement Actions and Industry Landscape:
The SGA’s enforcement actions against Videoslots reflect the authority’s commitment to combating illegal gambling activities in Sweden. This aligns with broader industry efforts, as highlighted in the Spelinspektionen’s recent interim report focusing on reducing illicit gambling within the country.
Previous Compliance Incidents:
This extension follows a series of compliance incidents for Videoslots. In June 2023, the operator agreed to a £2 million settlement with the UK’s Gambling Commission. The settlement was related to findings of lapses in social responsibility and AML measures, including failures in identifying potential harm to customers and delays in implementing risk-based processes.
While Videoslots secures a five-year extension in Sweden, the compliance challenges underscore the ongoing scrutiny and stringent measures imposed by regulatory authorities. As the gaming industry navigates evolving regulations, operators face the imperative of robust compliance practices to maintain their market presence and uphold regulatory standards. The extension granted to Videoslots reflects both confidence in the operator’s future plans and the continuous commitment to regulatory compliance.