SBC News Yggdrasil settles €30k fine for Swedish B2B infringements

Yggdrasil settles €30k fine for Swedish B2B infringements

Spelinspektionen, Sweden’s Gambling Inspectorate, has issued a warning and a penalty fee of SEK 300,000 (€26,000) to Yggdrasil Gaming for non-compliance with regulations related to licensed supplier services/authorisations.

The regulator has stated that, through its investigations into unlicensed gaming websites on January 16, 2024, it determined that Yggdrasil had provided gaming software to an operator who didn’t have the necessary Swedish licence to operate in the country.

Within its report, Spelinspektionen said that it was told by Yggdrasil that the supplier had “internal flaws” within its monitoring system of dealer agreements which caused the violation and that it had promptly removed its games and other assets from the operator in question by January 23, 2024.

Spelinspektionen determined that the violation was “serious” and that Yggdrasil could have their licence revoked, but a warning was deemed “sufficient” as the regulator believes the supplier will conduct business going forward “in a manner that is compatible with the gambling act”.

Alongside a warning, the authority determined that a penalty fee should be handed to Yggdrasil as well, from a minimum of SEK 5,000 to a maximum of 10% of turnover, with considerations given for how serious the violation is and how long it has been going on.

Spelinspektionen noted that “the violation took place during the audited period and that it was a serious violation”.

Using information from the supplier that its net sales in 2023 amounted to €514,566 (approximately SEK 5.8m), the regulator calculated a maximum penalty fee of SEK 580,000.

In conclusion, Spelinspektionen assessed that the penalty fee should be SEK 300,000.

Yggdrasil has been licensed in Sweden since March 22, 2023, and this licence doesn’t expire until June 30, 2028.

In 2023, the Riksdag approved new amendments to Sweden’s Gambling Act of 2018. Headline measures, which were applied from July 1, saw Spelinspektionen launch a licensing regime for B2B software suppliers and game developers.

The B2B regime was authorised to improve the technical supervision of Sweden’s gambling market, to ensure software suppliers, technology providers and game developers comply with market rules and protections.

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