Swedish Regulator Issues SEK300,000 Fine to Yggdrasil for Supplying its Online Gaming Software to Unlicensed Operator

Spelinspektionen, the Swedish gaming regulator, has issued a SEK300,000 (€26,200) penalty fee and a warning to Yggdrasil for allegedly supplying gaming software to an unlicensed company operating in Sweden.

Yggdrasil received its software licence on 22 March 2023. This permitted it to create, supply and install gaming software used for online games in Sweden. This licence expires on 20 June 2028.

The regulator said it began its investigation on 16 January 2024, when it began to investigate websites being run by unlicensed operators in Sweden. It is understood that Yggdrasil was a supplier for one of these websites, according to Spelinspektionen’s decision outline.

This contravenes chapter 11, section 6 of Sweden’s Gambling Act. This section outlines that game software licensees must not provide software for anyone that does not hold a licence.

In response to the investigation, Yggdrasil said it had corrected the issue on 23 January 2024. It stated that the contravention had come about due to a breach in contract between itself and a retailer. Yggdrasil stipulated that it no longer “manufactures, supplies, installs or changes gaming software for players without the necessary licence”.

The regulator acknowledged that Yggdrasil complied with its order, but added that this is expected of all licensees.

“Yggdrasil has promptly taken corrective action and removed games and all other types of assets belonging to Yggdrasil from the website in question and ceased the violation since it was notified by the Gaming Authority,” reads the decision.

“The collaboration cannot, however, be considered to have been active in a different way than what one must normally be able to expect from a company that has chosen to operate licensed activities under supervision.

“The mitigating circumstances do not outweigh the seriousness of the offense in such a way that it can be considered minor or excusable. In summary, the Swedish Gaming Authority assesses that the violation is serious.”

Spelinspektionen concluded that a warning would be given rather than revoking Yggdrasil’s licence in Sweden altogether. This is also combined with the penalty fee issued.

The fee must be at a minimum of SEK5000 and set at a maximum of 10% of the company’s turnover in relation to the preceding financial year. As Yggdrasil’s net sales hit €514,566 in 2023 – the equivalent of SEK5.8m – the fee could have been as high as SEK580,000.