Fintech payment solutions company Zimpler was instructed on 6 July to stop its provision of payment services containing BankID to iGaming companies that accept Swedish customers without a Swedish license.
The order was issued by the Swedish Gambling Authority (Spelinspektionen/SGA) and will be carried out by 31 July at the latest.
However, the company has opted to appeal the decision. The company believes the decision is 'misdirected and incorrect, with far-reaching consequences.'
The decision also contains several legal issues that need to be clarified by the Court, for certain payment service providers to be able to conduct their business without risking interventions from Swedish authorities.
In 2021, the SGA’s official report proposed changes to gambling regulations. For example, gambling companies without a Swedish licence would have to introduce IP address blocking against Sweden-based bettors. Zimpler supported the proposal but, so far, the Government has not yet implemented it.
Because of this, Zimpler announced in May 2023 that the company will end business relations with all iGaming companies that do not hold a Swedish gambling licence, to prevent any potential breaches of gambling policies.
Johan Strand, Zimpler CEO, said: “Zimpler supports the Swedish Gambling Authority’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.
“In dialogues with legislators and authorities, Zimpler has also proposed measures to strengthen consumer protection, for example, that Sweden-based consumers should be barred from games licensed outside of Sweden through IP address blocking and that B2B licences should be introduced for payment service providers.”
