Investigations into Moonrail Limited and Perfect Storm began after suspicions arose that they had been targeting the Swedish market. This is despite not holding operating licences there, a breach of chapter 3, section 3 of Sweden’s Gambling Act
According to chapter 18, section 23 of the Act, the regulator can issue bans and injunctions to ensure operators are complying with the Act.
The ban applies immediately to both operators.
The regulator investigated csgo500.com, which is owned and operated by Perfect Storm, and csgoempire.com, which is owned and operated by Moonrail Limited. Both operators are registered in Curaçao.
Perfect Storm also operates www.500play.com, www.csgo500.io and www.500.casino. Moonrail Limited operates a number of other sites, including csgoempire.tv and csgoempire.io.
Regulator assesses targeting to Swedish market
In its decision, Spelinspektionen looked at whether the two operators made their games available in Sweden for Swedish customers.
It stated that to be considered as aimed at Swedish customers, a site would have to offer information that would pertain to Swedish customers. This could include having Swedish currency available for customers to choose from for withdrawals, deposits and winnings. In addition, a site could also use the Swedish .se domain.
A site could also have contact information specifically for Swedish customers and offer payment options from companies registered in Sweden.
In both cases, the sites contained information in Swedish. In the conditions section, both sites also included information pertaining to Swedish customers. Marketing materials from their affiliates are also in Swedish.
“If Swedish consumers are not allowed to register and create an account on a website that offers games, Spelinspektionen considers that the game cannot be considered provided in Sweden,” said the regulator. “The Gambling Act is therefore not applicable in that situation.”
Ultimately, the regulator assessed that Moonrail Limited and Perfect Storm provide games in Sweden to Swedish customers – despite not having licences. Both operators were given the opportunity to make a statement, but as of yesterday (2 November) no statement had been received by the regulator.
Earlier this week, Spelinspektionen issued Videoslots with a SEK9m fine (£663,575/€760,000/$808,809) after it was found to have breached anti-money laundering and terrorism laws.
Original article: https://igamingbusiness.com/legal-compliance/swedish-regulator-bans-unlicensed-operators/
