Swedish regulator appeals annulment of Zimpler injunction

In July 2023, Spelinspektionen ordered payment provider Zimpler to halt working with unlicensed operators in the Swedish market.

Swedish regulator Spelinspektionen has warned payment provider Zimpler it could face a fine of up to SEK25.0m (£1.9m/€2.2m/$2.4m) if it fails to comply with its order to stop providing services, including the use of e-identification service BankID, for transactions with offshore sites.

Zimpler appealed that order and, last month, the administrative court upheld that appeal. The administrative court found the authority had a lack of basis for the injunction, subsequently cancelling it.

However, Spelinspektionen has now appealed that verdict. The regulator believes that Zimpler, a Swedish company, offering its payment service, meant the games under scrutiny were aimed at Sweden, thus promoting illegal gambling.

A higher court

As part of its appeal, Spelinspektionen has called for a higher court to look at the issue due to a lack of precedent, with reason to doubt the administrative court’s decision.

“It is also important for the management of the application of the law that the appeal is examined by higher law, because there is a lack of practice both when gambling companies are considered targeted to Sweden and the current scope of the promotion ban,” Spelinspektionen said in its appeal.

Spelinspektionen argued the administrative court had “assessed the legal situation incorrectly”.

Spelinspektionen stated the illegal sites were not only accessible to Swedish consumers, but also made available in a way that can be seen as designed specifically for the country’s market by using Zimpler.

The use of BankID, only available in Sweden, was also highlighted as a further appeal being made to Swedish consumers.

“Knowledge means promotion”

Spelinspektionen said Zimpler was promoting illegal gambling by knowing the illegal status of the offshore operators it was working with.

“It must be considered clear that Zimpler through its actions has illegally promoted [offshore operators],” Spelinspektionen added. “Whether or not Zimpler’s payment service has explicitly targeted gambling companies is irrelevant.”