Videoslots Fined Nearly £1M in Sweden for Failing to Prevent Excessive Gambling

What Happened?

In spring 2024, Sweden’s gambling regulator launched an investigation into Videoslots to assess whether the operator was meeting its duty of care obligations under Chapter 14, Section 1 of the Gambling Act. After months of scrutiny, the answer was a clear no.

The findings revealed that 12 customers were allowed to gamble excessively over a three-month period, with little to no meaningful intervention from the platform. Spelinspektionen concluded that the systems in place simply weren’t effective enough in protecting players, especially when it came to acting fast and following up.

The Core Issues

According to the regulator:

• Videoslots failed to act quickly when risk behaviors were flagged.
• Contact methods such as pop-ups and emails had minimal effect.
• Young players were involved, which added weight to the ruling.
• There was a lack of follow-through on the measures implemented.
• Delays in intervention allowed significant financial loss in a short time.

Even though three of the flagged players triggered the system's alerts, they had already spent months gambling heavily before Videoslots took steps to engage them.

Videoslots’ Defense

Videoslots argued that:

• The review period (three months) was too short to reflect player trends.
• Data protection rules limited how much personal info could be used to assess players' financial or health risks.
• They had systems in place that blocked deposits and flagged risky behavior.

But the regulator wasn’t buying it. Spelinspektionen stated that data protection law doesn’t override the obligations outlined in the Gambling Act especially when it comes to vulnerable groups like younger bettors.

Outcome and What It Means

While the company did cooperate and has since made improvements to its monitoring and evaluation processes, the fine stands and so does the official warning.

To their credit, Videoslots responded quickly post-investigation, tweaking internal procedures to improve how they track, act on, and assess problem gambling behaviors.

Still, this marks the second major fine for the operator in Sweden in just two years. In 2023, they were hit with a SEK9 million penalty for AML failures and breaches related to terrorist financing laws.

Takeaways for the Industry

• Duty of care is under the microscope: Regulators aren’t just looking for systems—they want proof that those systems work.
• Automation isn’t enough: Human oversight and fast follow-up remain critical in player protection.
• Young players are a red flag: Expect heightened scrutiny when under-25s are involved.
• Compliance isn’t static: What passed last year might not pass today. Continuous improvement is essential.

If you’re running an iGaming operation—especially in regulated European markets this is yet another reminder that proactive, transparent, and fast-acting player protection isn’t just good practice. It’s the cost of doing business.