Key points:
- The original sanction fee from the Spelinspektionen was set at SEK 2.6m ($260,000)
- Following an appeal from the company, the courts have reduced this to SEK 20,000
- The sanction is due to two operators providing Hacksaw Studios games without a licence
The Administrative Courts in Sweden have come to an agreement on a sanction fee imposed by Spelinspektionen, the Swedish Gambling Authority, on Hacksaw Studios.
In January 2024, Spelinspektionen found that several unlicensed operators were offering games from Hacksaw Studios, which is in breach of the Gaming Act.
Initially, the Swedish Gambling Authority set the sanction fee at SEK 2.6m.
Good to know: Due to sanction fees being tied to a company’s net sales and turnover, the maximum fee Hacksaw Studios could’ve received for this was SEK 4.34m
However, Hacksaw Studios argued that it utilises geoblocking software so that even if its games do get supplied to less-than-savory operators, customers are still unable to access them unless the operator is licensed.
Hacksaw Studios also claimed that “a developer cannot take full responsibility for its customers' compliance and no developer can guarantee that operators will not attempt to make its software available in markets where the operator does not hold the necessary licences”.
As such, the provider appealed the decision and escalated the issue to the Swedish Administrative Courts.
The final decision from the Courts notes that “the Gambling Act is applicable and violations have occurred” and “a warning is justified, but the penalty fee must be reduced”.
The final amount of SEK 20,000 translates to $2,037.70.
This was due to the fact that Hacksaw Studios complied with Spelinspektionen and had implemented geoblocking software to its products prior to the investigation.
Spelinspektionen has also recently come under fire, after the National Audit Office found it was not meeting expectations. As such, the Swedish Gambling Authority has outlined how it's streamlining operations going forward.
