SBC News Voice of the Sports Betting Industry
Following a judgement in one of Sweden’s Administrative Courts, the country’s Gambling Authority, Spelinspektionen, has revoked its previous decision on the importance of negative equity.
The regulator had previously outlined a lack of negative equity as a condition when firms apply for a Swedish betting and gaming licence, but the Court ruling regarding Avento’s application has prompted the charge.
In a ruling in December, the Swedish Administrative Court in Linköping asserted that negative equity should not have been considered a licence condition during Avento’s application.
However, the Authority continues to maintain that ‘a negative equity usually means that the sustainability requirement cannot be fully fulfilled’.
On the other hand, applications from operators that are part of groups and/or conglomerates could see the wider combined capital strengthen taken into account.
This standard will be adopted for both first-time applicants and existing licence holders seeking a renewal – but firms must prove that ‘resources are relevant’ and at the company’s disposal, such as via a capital guarantee.
Spelinspektionen’s statement read: “The Swedish Gaming Authority believes that a capital guarantee from a private person cannot be accepted as a starting point in view of the difficulties in obtaining a reliable picture of a natural person’s financial position.
“The extent to which the group’s capital strength can be taken into account and what capital strength is required for the conditions for a licence to be considered fulfilled will be decided in each individual case.”
The licence revision is the second major update regarding the Swedish Gambling Authority and its stances on operator duties this month, following a change in ‘Duty of Care’ requirements on 1 February.
Operators must prepare an action plan on duty of care and record engagements with troubled individuals as well as company efforts to reduce the gambling volume of said persons.
