The Swedish Gambling Authority (Spelinspektionen) has lately been trying to strengthen the country's gambling regulations. Recently, the regulator started issuing new B2B licenses to suppliers of mobile casino games. Another strategy is discouraging local payment options from providing services to unregulated casinos.
Earlier in July, Spelinspektionen told Zimpler, a regulated payment service in Sweden, that working with offshore casinos would lead to a significant fine of SEK 25 million.
In a court order granting an injunction, Spelinspektionen states that it is taking action because Zimpler uses BankID when transacting with offshore casino apps. Currently, only Swedish customers use the e-identification service (BankID) to fund their accounts on regulated mobile casinos.
But despite promising to cut ties with these casinos, Zimpler has decided to proceed with a formal appeal. The payment service provider says the regulator's decision is "misdirected" and "incorrect". Zimpler has said the decision might hurt the market and its own business since the restriction is illegal.
The provider added that it was unaware that the operators lacked the necessary license. Zimpler claimed that determining whether specific BankID casinos appeal to Swedish players requires an overall evaluation. According to Zimpler, none of its clients are on Spelinspektionen's list of operators that improperly court Swedish consumers.
Zimpler says it had previously proposed legislative changes to prevent unauthorized casinos from accessing the market. This includes a suggestion to use IP address blocking and the introduction of B2B licenses for payment service providers in Sweden.
Zimpler CEO Johan Strand said:
“Zimpler supports Spelinspektionen's mission to strengthen the Swedish licensing system and consumer protection in the iGaming market. We want to promote responsibility and compliance in the gaming industry and have for a long time invested in product development in this area.”
On their part, the Swedish Gambling Authority claims that the use of BankID in casino transactions was proof that the operators in question are illegally targeting Swedish players. After receiving an anonymous tip, the regulator initiated an investigation but fell short of revealing the operators' identities. Zimpler has time until July 31 to cease operations with the operators.
