Spelinspektionen Warns Payment Processors Off Serving Unlicensed Casinos
Posted at: 13 September 2019
In an update, published on September 12 at the “Media coverage” section, the Swedish gambling regulator Spelinspektionen informed the community that it has sent a letter to the payment processors, operating on the territory of the country. The regulator reminded them that processing payments to and from unlicensed operators puts the customers at risk and puts the payment processors themselves in the position of violators of the new Gambling Act that came into force on January 1st, 2019.
Spelinspektionen emphasized that the facilitation of payments to and from unlicensed operators means that the payment processors promote the illegal gambling while risking the well-being of the vulnerable part of the population. At the same time, they undermine the efforts of the Swedish authorities to protect the licensed operators against unfair competition and handle the money laundering issues.
Spelinspektionen also noted that unlicensed operators do not have access to the Swedish self-exclusion register Spelpaus. Therefore, they do not know if a player has opted out of all forms of gambling.
“Unregulated gambling also has serious consequences for society, for example in form of lost tax revenue and increased vulnerability for problem gamblers,” the regulator added.
Sweden opened the door for international operators wishing to target local players and many online gambling companies expressed interest in obtaining a license. However, it turned out that the licensees have to adhere to strict regulations.
As CorrectCasinos repeatedly reported, violators pay solid fines. What’s more, GiG shut its Swedish sportsbook and defended its decision with the lack of clarity in the existing regulations.
Nevertheless, Spelinspektionen continues its crackdown on unlicensed operators and stays focused on protecting the interests of the licensed ones and preventing the negative social and financial consequences excessive gambling may lead to.