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XC Gaming’s Appeal Over SEK5m Penalty Thrown Out

The Administrative Court in Sweden has thrown out an appeal filed by XC Gaming. This is the operator behind Klirr and Frank & Fred. The operator was ordered to settle a fine worth SEK5 million in 2020 due to bonus failings. The court said the infringement by the operator was serious and the regulator’s fine is sufficient.

XC Gaming’s SEK5m Penalty Appeal Sustained

XC Gaming, the operator behind Klirr and Frank & Fred Casino, appealed a fine issued by the Swedish gambling watchdog. This was after the operator was found to have breached bonus regulations in 2020. 

The regulator ordered XC to pay SEK5 million. But the company moved to court to appeal the punishment. However, the Administrative Court turned down the appeal. The Swedish court stated the bonus breaches by the operator included offering unauthorized gifts to a player as well as other bonuses. This was after they made multiple cash deposits. 

The player would later be identified as vulnerable by the operator. And according to the court, this is a clear violation of duty care when it comes to the particular player. In the end, the court concurred with the regulator. It said the breach was serious and the operator deserved the fine imposed on it. 

XC Gaming’s SEK5m Penalty Appeal Sustained

Spelinspektionen Investigations into XC Gaming’s Operations

The breach in question investigated by the regulator happened before XC Gaming’s ownership moved to The Mill Adventure. But Spelinspektionen acknowledged the changes introduced after the breach by the new operator. The changes aimed at ensuring such infringements don’t occur again. 

Spelinspektionen’s investigations into XC Gaming revealed the breach. This was since the operator received a two-year operating license. The probe included questions touching on the company’s operating capacity among other crucial procedures. Part of the investigation included requesting details about their highest-depositing player. 

The regulator would later find out the customer received over six bonuses after the operator released the data. These bonuses ranged from SEK1,500 to SEK 7,500. 

But the regulator calculated the total received by the player to be at over SEK21,000 as the bonus for the period under review. The regulator also discovered the player received a bottle of champagne in addition to the bonus funds. 

Sweden’s Rules on Gambling

The current regulations applied to the online gambling sector in Sweden went live in 2019. One of the most important points in the legislature is the one touching on bonuses. According to the Swedish gambling laws, online casinos can offer only one bonus to their customers. That is the welcome offer.  

That means there are no further bonuses available to players after they deplete their welcome offer. No free spins, no even no loyalty program. In short, gamblers won’t have a reason to shift from one casino to another since all are practically the same. The government introduced this measure after it felt the bonuses offer too much of an appeal for people to indulge more in gambling. 

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Nerijus Grenda
Nerijus Grenda
Published: 14 Oct 2021
Updated: 13 Mar 2023
Nerijus Grenda is a prolific contributor to the GoodLuckMate site. With a deep understanding of the online casino industry, gained from his own experience as an avid player, he offers valuable insights on what sets the best casinos apart from the rest. As a writer, Nerijus shares his expertise through expert analysis and thoughtful commentary on various topics related to online gambling, including casino reviews, game guides and industry trends.

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