The Administrative Court in Linköping has overturned a March 2025 ruling by the Swedish Gambling Authority (Spelinspektionen) that fined Malta-based operator LeoVegas SEK 8 million ($852,867) for alleged breaches of Sweden’s Gambling Act. The court found the evidence provided against LeoVegas was lacking, leading to a full reversal of the regulatory penalty.
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Original Allegations by Spelinspektionen
In March 2025, Spelinspektionen completed a supervisory review of LeoVegas’s responsible gaming measures during the first quarter of 2024. And the regulator scrutinized 12 customer accounts, targeting those with the highest losses among two age brackets: 18-24 years and 25+ years. Concerns were particularly raised over three accounts with large monthly deposit limits—ranging from SEK 100,000 to SEK 300,000—and signs of excessive gambling behavior such as rapid deposits and prolonged session durations. And spelinspektionen alleged that LeoVegas failed to provide adequate intervention for these customers. But though the operator eventually implemented measures to reduce gambling activity, the regulator deemed these actions as both delayed and insufficient, resulting in a reprimand alongside the steep financial penalty.
LeoVegas’s Defense and Appeal
LeoVegas mounted a defense against the fine, highlighting its strong monitoring system comprised of automated alerts and manual checks to identify and mitigate problematic gambling. The company argued that it had instituted deposit limits and account suspensions and emphasized taking a voluntary approach before enforcing stricter interventions. Moreover, LeoVegas challenged the regulator’s criteria, arguing that behavior such as prolonged log-in times and rapid losses, while alarming, aren’t necessarily indicative of problem gambling, especially among sports bettors. The company noted that broader statistics show a decline in problem gambling rates in Sweden, suggesting the situation isn’t as dire as portrayed. LeoVegas also pointed to legal uncertainties existing before legislative amendments on June 1, 2024, which impacted how personal data could be processed in responsible gaming assessments.
Court’s Judgment and Market Context
In a detailed ruling (case no. 3061-25), the Administrative Court determined that Spelinspektionen’s case suffered from a lack of clarity and evidence. It recognized the high-risk nature of the sampled accounts but noted only three showed rapid losses and high deposits. The court also appreciated LeoVegas’s use of automatic notifications and account management practices that effectively curbed gambling activity. The court agreed that while interventions could have been swifter, delays didn’t warrant the level of penalty imposed. Importantly, it accepted LeoVegas’s argument that the duty of care doesn’t dictate precise intervention timelines, acknowledging operators must balance privacy and escalate interventions appropriately. The ruling comes amid a regulatory market where Swedish authorities have been vigilant but sometimes criticized for their strict enforcement. Industry data shows that while regulatory actions are necessary, operators like LeoVegas often navigate complex compliance challenges.
What’s Next for LeoVegas?
The court’s decision represents a major win for LeoVegas, but its implications stretch beyond this single case. As Swedish regulators continue to refine their approach to responsible gambling, LeoVegas’s victory may influence future regulatory reviews. However, this isn’t the first time operators have effectively challenged fines in Swedish courts, highlighting ongoing tension between regulators and operators. As the industry watches closely, upcoming legal amendments may further shape the market.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
