Spelinspektionen has handed out a warning to Betway. The operator is said to have breached rules on minimum equity in Sweden. This follows a request from Spelinspektionen to see Betway’s 2019 financial reports.
Spelinspektionen asked Betway to see its annual report for 2019 where it had reported a loss of €50.3m. This left the company with negative equity of €4.8m. According to the authority, Betway lacks the capital base necessary to operate in the company, stating that it is dependent on its parent company.
Betway Group Limited, the operator’s parent company, recorded a loss of €42.2m, with €49.9m positive equity. While Betway Limited Consolidated Limited Group reported losses of €60.4m and €13.8m in negative capital.
Under the regulations in Malta, companies are allowed negative equity providing they can prove that they are still able to operate. In the case of Betway provided a capital guarantee to Spelinspektionen from its parent company to prove it could survive. This was considered insufficient by the authority.
It was ruled that the capital guarantee covered parts of the negative equity, and as such, couldn’t be considered sufficient support. Following this, Betway was warned for breaching parts of the country’s Gaming Act. These concern a company’s ability to operate and prove themselves capable of having a license. The company has not been fined for the breach, with Spelinspektionen only issuing a warning.
This isn’t the first time in recent months that Betway has run into an issue with Spelinspektionen. The operator was fined SEK100,000 in December 2021 for the use of an unauthorized betting campaign.
Sweden has some tough betting restrictions when it comes to bonuses. The Gaming Act states that operators are not permitted to offer any offers other than a welcome bonus. Betway accidentally sent an offer out for a 200% match bonus for existing customers and was subsequently punished.
Betway was originally founded in 2006 and has since established itself as one of the biggest names in the iGaming and sports betting world. The company is now owned by the supergroup and it provides several products including Betway Casino, Betway Vegas, and Betway Esports, to name a few.
The company has a huge international presence. It has sponsorships in various top sporting leagues including with the likes of West Ham United and Tottenham Hotspur in England. It recently announced its first move into the French market with the sponsorship of the Ligue 2 side, Toulouse FC.