The Swedish Gambling Authority (Spelinspektionen) has ordered ASG 360 Services Limited, the operator of crypto casino GG.Bet to stop offering services in the country.
Spelinspektionen initiated an investigation into crypto casino GG.Bet after suspicions arose that the website was offering gambling services targeted at the Swedish market without a license.
GG.Bet Caught Out by Covert Operation
GG.Bet accepts deposits in digital currencies, and is considered to primarily serve as a crypto casino and sportsbook.
The Swedish regulator undertook a “mystery shopper” exercise and discovered that Swedish Krona was a selectable currency that was pre-selected when accessing the website from a Swedish IP address.
It also found that the company, or its affiliated partners, conducted marketing in Swedish. Additionally, Swedish customers were not restricted from registering and creating accounts on the website.
The decision, effective immediately, will impact the Cyprus-based operator’s 25 domains. The websites found to be operated by ASG 360 Services Limited were:
- gg248.bet, gg249.bet, gg251.bet, gg252.bet, gg254.bet, gg255.bet, gg257.bet, gg258.bet, gg290.bet, gg291.bet, gg292.bet, gg294.bet, gg295.bet, gg300.bet, gg-bet.org, ggbet.win, the-ggbet2.com, ggbbbet.com, ggbetbet.net, the-ggbet.lv.
The Swedish Gambling Authority gave the company the opportunity to respond to the findings, but no response was received.
GG.Bet was found to have breached Swedish regulations, specifically the Swedish Gambling Act. The act applies to all gambling services offered in the country unless explicitly exempted. It is also a “prohibitive law”, meaning that all entities are required to obtain a license should they wish to operate legally.
Spelinspektionen aims to exclude unlicensed operators from the Swedish market, but has struggled to get to grips with enforcement.
Unlicensed Gambling in Sweden Grows Tenfold Despite Regulatory Efforts
Yesterday, AB Trav och Galopp (ATG) released a fourth quarter report highlighting a tenfold increase in traffic to unlicensed gambling sites since 2019.
According to data in the report, the net revenue generated by unlicensed operators is between SEK 3.9 and 7.7 billion annually.
The channelization in Sweden (the percentage of wagering that takes place legally) is far below the government’s target of 90 percent, sitting between 69 and 82 percent. This shows the regulator’s struggle to curb Swedish users seeking alternative ways to gamble.
The report also highlights that gambling on unlicensed casino sites has an even lower percentage of people doing it legally. Given that casino products are often associated with the highest level of gambling-related harm, this statistic is of concern.
It also goes to show that existing regulations are not working. Half of the top 20 unlicensed sites by traffic were already on Spelinsektionen’s blacklist, and as such, the ban on GG.Bet’s operations may not achieve the desired effect.
Hasse Lord Skarplöth, CEO of ATG commented: “It is unreasonable that such a large share of gambling still takes place outside the licensing system. Unlicensed gambling is a breeding ground for money laundering – but above all, it leaves Swedish players unprotected from unscrupulous operators.”
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