United Lottery Solutions loses appeal over penalty fee

By Gambling Insider

United Lottery Solutions (ULS), the Swedish arm of Lottoland, has lost a second appeal over claims it offered unlawful betting on lotteries, as well as illegal lotteries.

A 2019 decision from the Swedish Gambling Authority (SGA) imposed a warning and SEK 700,000 ($75,155) fine on ULS for a breach of its licence and the Nordic country’s Gaming Act.

The company was approved to offer commercial online gaming, which includes bingo, “computer-simulated slot games” and casino games, but not scratch cards and traditional or online lotteries, which are reserved for the state and public good.

While ULS did not explicitly offer either of these, the SGA believed its games were presented in such a way that made them indistinguishable from them — in violation of the Gaming Act and not covered by the company’s licence.

United Lottery Solutions appealed the regulator’s verdict, bringing its case before the Administrative Court of Linköping. However, the court’s opinion concurred with that of the SGA, and the company’s appeal was rejected.

In an update after ULS’ first appeal, the Gambling Authority remarked: “The court concluded that the company has offered betting on the outcome of a lottery without the consent of the licensee who provides the lottery in Sweden and offered games in such a way that it appeared that the company organised a lottery instead of offering betting on it.

“The court also concluded that the company offered games on lotteries for which it does not have a licence and that the Swedish Gambling Authority had reason to decide on a warning and a penalty fee.”

ULS lodged a second appeal, but this has now also been rejected. As a result, the company will be forced to pay the penalty fee, two and a half years after the SGA’s original ruling.

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