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The Swedish trade association for online gambling BOS has urged for legislative changes in Sweden after the Swedish Gambling Authority (SGA) spared Malta-licensed Infiniza from legal action.

The SGA determined that Infiniza’s online casino websites are not targeting Swedish players, and the regulator therefore concluded an investigation into the operator without further action. 

This was first reported by Swedish financial newspaper Dagens Industry (DI). 

According to the DI article, the investigation focused on Infiniza’s use of payment provider Zimpler and dates back to 2021. 

Last July, the SGA instructed Zimpler to stop servicing gambling firms lacking a Swedish licence, with a particular reference to those using the Swedish identity verification system BankID.

New payment providers

However, Infiniza hit the headlines shortly after in September 2023 when following Zimpler’s exit, the company switched to a new payment provider Finshark.

Infiniza’s association with Finshark raised eyebrows since all Finshark-associated casino websites appeared to be owned by the Malta-licensed company.

Last month, NEXT.io reported instances where players used Swedish mobile numbers and BankID verification to deposit funds on Infiniza-owned casino sites. 

This time deposits were routed to Krofort, an instant payment provider lacking displayed licence information.

SGA decision

In its decision, obtained by NEXT.io, the SGA concluded that Infiniza had stopped targeting the Swedish market with its gaming offerings, citing changes in its marketing strategies and payment methods.

However, the SGA also warned that if Infiniza resumed targeting the Swedish market without the required licence, the authority could launch a new supervisory investigation against the company.

However, the SGA informed NEXT.io that due to confidentiality legislation, it could not disclose whether a new investigation had been initiated or was ongoing.

Last year, when assessing Zimpler, the SGA stated: “It is clear that Zimpler cooperates with and offers its payment service solution containing BankID to gaming companies that lack a Swedish gaming licence.

“In light of the fact that BankID is an e-identification service that is only used by Swedish customers, the SGA assesses that the gambling companies [in question] are targeting the Swedish market,” the regulator added.

BOS position

According to Gustaf Hoffstedt, secretary general of BOS, the SGA’s actions show the “major shortcoming of the Swedish gambling law.” 

He criticises the fact that the law allows gambling companies to accept Swedish consumers as long as they are not actively targeting them, “despite the fact that the gambling operator [Infiniza] accepts Swedish gambling consumers on a large scale.”

Hoffstedt asserts that Infiniza is one of Sweden’s largest black market operators, with a substantial portion of its operations focused on attracting Swedish consumers while avoiding paying Swedish gambling taxes.

BOS argues that this loophole needs to be closed, advocating for a legal amendment that would make it illegal for unlicensed gambling companies in Sweden to accept Swedish consumers altogether.

Hoffstedt adds that BOS has been lobbying for this legislative change for years. 

In an article in DI, Hoffstedt also criticised the pattern whereby payment intermediaries change their practices in response to scrutiny.

“That’s exactly how it goes: if someone shines a spotlight on the fact that payment intermediaries ‘blue’ are not okay, payment intermediaries become ‘red’, then ‘green’, then ‘purple’ – and it goes on forever.”

Despite all efforts, BOS has yet to receive a response to their proposal from the relevant authorities.

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