According to reports, online gaming business Gaming Innovation Group (GiG) has temporarily suspended operations of its sportsbooks in Sweden due to a “lack of clarity” in the regulatory structure. GiG has asked the government to clear up the confusion so it can reboot its Rizk and Guts brands across Sweden.
According to local media, GiG says it will honor standing bets made by Swedish gamblers.
GiG CEO Robin Reed reportedly said the country’s iGaming legislation is “too open to interpretation” and has created uncertainty about compliance, reported SBC News. “We find ourselves in an impossible position due to the lack of clarity in the Swedish gambling regulation. We have to protect the company and its shareholders from potential penalties from such vagaries.
“This action was taken because, ultimately, it is critically important for us to be compliant. So, we decided to temporarily suspend further bets until this can be clarified.
“We believe that the current rules for online sports betting are too open to interpretation, leaving uncertainty around whether an operator is in fact compliant or not. The recent fines issued by the Swedish regulator to GiG and multiple other peers demonstrate this overall uncertainty in the market.”
The operator plans to reopen both sportsbooks following the “necessary” clarification from the regulator. Reed has asked Spelinspektionen to suspend all other sportsbooks in Sweden until it can offer clarity on sports betting across the board.
“We encourage the Spelinspektionen to amend the relevant rules so that they do not leave any room for misinterpretation and we would welcome the opportunity to collaborate on this,” Reed said.
“We have taken the lead on this and we also encourage the SGA to suspend all sportsbooks operating in Sweden until such clarification is provided.”
In related news, according to iGamingBusiness.com, Global Gaming has failed in a bid to resume in the Swedish market while its license revocation is appealed. Global must now take its appeal to Sweden’s Supreme Administrative Court or win out against Spelinspektionen.
“The decision means that the company cannot offer games as long as the process in the administrative court is ongoing,” Judge Håkan Löfgren explained. “What is happening now is that the parties will complete their actions in the administrative court. The court then has to come to a final verdict, and rule on whether the revocation should be confirmed.”
Last month, Spelinspektionen stripped Global Gaming’s SafeEnt subsidiary of its license for breaches of player-protection and anti-money laundering regulations. Global says the punishment doesn’t fit the crime. “We are of course disappointed by the ruling of the Administrative Court of Appeal and the fact that relief was not granted,” new Global Gaming CEO Tobias Fagerlund said following the court’s ruling.
“We and our shareholders suffer a great deal of damage for every day operations are suspended. It is still our conviction that we will prevail at the end of the process. We are currently considering options for an appeal for injunctive relief in the Supreme Administrative Court.”
