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The Swedish Gaming Authority (SGA) has issued a warning and a SEK7m (€624,002) penalty to Kanon Gaming for shortcomings in the company’s duty of care towards customers.

Investigation and findings

In May 2023, the SGA initiated an investigation into Kanon Gaming to assess its compliance with duty of care requirements.

Customer data from more than 20 customers was reviewed, over a three-month period in 2022.

The audit revealed that the reviewed customers showed signs of excessive gambling, yet Kanon Gaming failed to take adequate measures to address these issues.

The SGA found that initial contact with customers, prompted by clear risk indicators, was not subsequently followed up.

Moreover, the SGA noted that the company failed to address the needs of young players aged 18 to 24, a particularly vulnerable group.

Additionally, two action plans presented by Kanon Gaming in January and June 2023 did not clearly outline how the company would fulfil its duty of care.

Further, the company failed to document all duty of care contacts and lacked established procedures for contacting players in cases of identified or suspected problem gambling.

The SGA concluded that Kanon Gaming’s deficiencies in duty of care have been longstanding, dating back to at least April 2021.

Kanon Gaming’s response

In its response to the SGA findings, Kanon Gaming acknowledged the shortcomings identified by the regulator and said it takes its commitments under the Gaming Act and other Swedish regulations seriously.

Among other measures, Kanon Gaming explained that all customers who deposited SEK20,000 received automatically generated messages advising them to review their gambling habits.

The SGA, however, deemed this level of action to be insufficient.

Since the review period, Kanon Gaming has also implemented several measures, both due to the SGA’s review and on its own initiative.

The company has updated its action plan, internal routines, and guidelines for responsible gambling.

It has also introduced special restrictions and risk management for young players aged 18 to 24 and previously self-excluded players.

SGA opinion

The SGA said that despite recent improvements, Kanon Gaming’s violations were deemed serious due to their systematic nature and impact on individual consumers.

The regulator added that while Kanon Gaming has shown understanding and cooperation in rectifying the identified shortcomings, the company’s collaboration with the regulator was considered to be at a level reasonably expected of a licensed operator.

The SGA will continue to monitor Kanon Gaming’s compliance with responsible gambling practices and the firm’s effectiveness in safeguarding players.

NEXT.io has reached out to Kanon Gaming for comment.

Earlier this year, Malta’s Financial Intelligence Analysis Unit (FIAU) imposed a €67,874 administrative penalty on Kanon Gaming, citing deficiencies in the firm’s anti-money laundering measures.

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