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Videoslots Fined €1 Million for Failing to Prevent Excessive Gambling
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The Swedish Gambling Authority (Spelinspektionen) fined Videoslots Ltd €1 million. The fine was given because the company did not do enough to prevent excessive gambling as required by the Swedish Gambling Act. The company failed to take proper steps to protect players from gambling harm and did not act quickly when signs of problem gambling appeared.
Investigation and Findings
The Swedish Gambling Authority fined Videoslots SEK 12 million after an investigation. It was found that the company did not help users reduce their gambling, even when clear risks were present. Videoslots operates the websites videoslots.com and videoslots.se. The investigation revealed that the company broke the law under Chapter 14, Section 1 of the Swedish Gambling Act, which requires them to take care of their players.
Videoslots monitored player gambling behaviour using an automated approach. This algorithm identified risk indicators and assigned a severity rating. But the business only replied with emails or pop-up messages. They did not impose any significant limits, even in cases where players shown indications of excessive gambling.
Young Users Lost Significant Amounts
Many young users between the ages of 18 to 24 lost more than SEK 40,000 (around €3,500) in three months. One user made 28 deposits in one day, while another bet a total of SEK 4 million (around €340,000) in a month.
Regulator’s View: Quick and Effective Actions Needed
The regulator emphasized that gambling harm can get worse very quickly, especially in online gambling. It’s important for companies to take fast and effective action to protect players. In one case, a customer deposited over SEK 500,000 in ten weeks after being flagged for intervention, without any restrictions applied.
Videoslots said it acted according to legal requirements and that rules about data protection limited its ability to act faster. They also mentioned that they have made improvements during and after the investigation. However, the Swedish Gambling Authority concluded that these changes came too late and the legal requirements were clear throughout the review period.
Fine and Warning
The Swedish Gambling Authority gave Videoslots a warning and fined them €1 million for serious and repeated mistakes. Although they could have revoked the company’s license, Videoslots made some changes, and if fully implemented, they might meet the required standards. The fact that five of the affected users were under 25 years old was an important reason for the fine.
Videoslots now needs to improve its system and offer better support to help players gamble responsibly.
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