igamingnext photo
Yggdrasil has been hit with a SEK300,000 (€26,218) fine for providing software to an online gambling operator that does not possess a Swedish licence.

The Swedish Gaming Authority (SGA) imposed the financial penalty alongside an official warning, after carrying out an investigation in January 2024.

The investigation checked the websites of several operators that are prohibited from offering games in Sweden.

The regulator established that Yggdrasil had acted as a supplier to one operator which was not locally licensed and had been prohibited in Sweden since October 2021.

Yggdrasil said it took action to correct the failings on 23 January and no longer supplies gaming software to any operators without the necessary Swedish licence.

The supplier suggested the illegal provision occurred due to a breach of contract by a partnering retailer.

The SGA said Yggdrasil had promptly taken action to remove the games and other assets from the website in question while cooperating fully throughout the process.

Despite this, it adjudged the violations to be of a “serious” nature.

Penalty fees are set in relation to a company’s turnover during the preceding financial year. They are set at a minimum of SEK5,000 and a maximum of 10% of turnover.

The SGA said Yggdrasil’s net sales for 2023 amounted to €514,566, corresponding to turnover of approximately SEK5.8m, meaning a maximum penalty of SEK580,000.

The regulator settled on a fine of SEK300,000 in this case.

B2B licence requirement

As of 1 July 2023, a B2B licence is required to supply gambling software according to the Swedish Gambling Act.

The amendment states that companies with a gaming software licence must not “manufacture, provide, install or change” gaming software for any party that lacks the necessary Swedish licence.

The requirement for a B2B licence was introduced with the aim of increasing channelisation to the regulated market and discouraging illegal gambling.

Yggdrasil is the first company to have been fined under the new B2B licence requirements, NEXT.io understands.

They are unlikely to be the last, however, with more enforcement action to set to come, according to industry insiders who have hinted at a “storm” of similar announcements.

Similar posts