Spelinspektionen Looks into Betway Over License Condition Shortcomings

The gambling regulator of Sweden, Spelinspektionen, has reprimanded Betway as the operator has failed to meet certain license obligations. According to Spelinspektionen, Betway has negative equity, which puts operations at risk due to what is described as “unstable” finances.

Betway Claims That Its Operations Are Stable

This is not the first time that Betway has been under scrutiny by the Spelinspektionen. Back in December 2021, the regulator issued an $11,000 fine for breaching rules concerning bonuses. This time, Spelinspektionen states that the negative equity can be grounds for compulsory liquidation, but there is a slight problem in the situation.

This claim is made based on the laws in Sweden, and Betway is based in Malta, meaning that those rules do not apply to the operator. Spelinspektionen stated that the fact that a company, which in this case is Betway, has negative equity opens up doubt on whether it can maintain a firm financial position, regardless of any measures that need to be taken. It also acknowledged the fact that those measures need to be in accordance with the laws and rules of the country where the company is registered.

In response to Spelinspektionen’s claims, Betway provided a capital guarantee and stated that if needed, the group would have its resources available, but Spelinspektionen didn’t recognize this as fair compensation for the negative equity. The regulator also explained a capital guarantee can “partially compensate for a negative equity.”

Spelinspektionen Is Adamant About Keeping Players Safe

The Swedish regulator has made it clear that it intends to make Sweden’s gambling industry as safe for players as possible. Apart from warning Betway, it also called out the Swedish Bingo Association for not following the rules. The bingo operator did avoid a fine, but Spelinspektionen made it clear that such breaches would not be tolerated.

In November 2021, it reprimanded Betsson for breaching football betting rules and banned 23 illegal operators based in Curacao. The regulator also targeted reputable operators like LeoVegas and ATG. Spelinspektionen issued massive fines because the said gambling websites breached specific rules of the Money Laundering Act and the Gambling Act.

Spelinspektionen considered bringing back restrictions lest people develop any gambling problems while staying at home. Some organizations, such as the Swedish Trade Association for Online Gambling, have been pretty vocal as they disagree with these measures. Eventually, the government decided against too restrictive measures on its gambling industry, at least for the time being. Such measures are not ruled out as a future possibility.