The Swedish Gaming Authority (SGA) has backed the government's initiative to "modernize" the way the country's licensed gambling operators are penalized.
In response to the Swedish government's advice on a modernized consumer protection regime in several business sectors, the SGA supported the government's plans to reform the so-called "market disruption" fee.
Specifically, the SGA agreed that the fees should be expanded to include more violations. The Swedish Marketing Law (MFL) now includes a requirement for financial penalties when businesses engage in so-called aggressive marketing.
Section 7 of the MFL states: “Marketing should be considered aggressive if it involves harassment, coercion, physical abuse, threats, or other aggressive means of exerting pressure.
“Aggressive marketing should be considered unfair if it significantly affects, or possibly interferes with, the recipient's ability to make an informed transaction decision,” MFL adds.
However, the Swedish government has said that the penalty requirement should be extended to the violations contained in sections 5 and 6 of the law, which also include violations of so-called "good" marketing practices.
"The SGA welcomes the investigation's proposal that the ability to decide on a market disruption fee under section 29 of the Marketing Act (MFL) should be expanded to also include violations of sections 5 and 6 of the MFL," the SGA said.
However, the SGA expressed concern about possible ambiguity in combining sanctions decisions with financial penalties.
In addition, the regulator announced its support for the removal of the cap on fees for potential market disruption. The MFL limits this amount to no more than 5 million SEK, or 10% of the operator's annual turnover.
According to the regulator, this change will remove the differences between the market disruption fee charged by the SGA and the Swedish Consumer Protection Agency.
“The increased ability to decide on a market disruption fee in the event of violations of the gambling law’s marketing provisions, together with the proposal to eliminate the cap on the fixed amount, leads to a decrease in the discrepancy between the possibilities for sanctions by supervisors, which is a positive development,” the SGA explained.
The SGA also supported the requirement to be clear about which circumstances to consider when imposing fines, suggesting that this would provide greater transparency and predictability for operators.
“It should be clarified that the entity’s financial position should also be taken into account when determining the amount of the remuneration, to ensure that fees can be a deterrent, even for entities with significant financial resources, and to ensure proportionality,” the SGA added.
The Swedish government is currently consulting on whether to introduce a "special moderation" requirement for online gambling marketing to bring the practice in line with tobacco and alcohol advertising.
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