In September of last year, several regulated operators in Sweden raised concerns about the financial services company Finshark facilitating money transfers between consumers and unlicensed operators in the country. This led to them requesting the Swedish Gambling Authority (SGA) to conduct an assessment due to similarities with a previous directive.
Zimpler, a provider of instant bank payment solutions, was also affected as they were forced to stop providing a similar service to operators. However, the situation has only worsened since then, with the addition of an extra pay-and-play feature.
The primary concern revolves around a series of casino websites owned by Infiniza Ltd, a Malta-based company operating under a license issued by the Malta Gaming Authority. Screenshots revealed that Swedish players were able to use their mobile phone numbers and complete deposits via the national identity verification system, BankID.
The recipient of these deposits was the instant payment provider Krofort, which does not possess a license. Allegations suggest that Infiniza is the sole gaming operator in Sweden with online casino brands connected with both Krofort and Finshark, giving them an unfair advantage over licensed operators.
Regulated providers expressed their concerns about the competitive advantage that unlicensed operators have in using fast payment services, as well as questioning why the SGA has not taken action.
In March 2023, the SGA announced plans to crack down on B2B suppliers offering products to unregulated operators, giving them the authority to block payments. They had previously instructed Zimpler to stop offering payment solutions via BankID to operators without a license.
More recently, the SGA banned Smein Hosting and True Polygon Entertainment for targeting Swedish players without authorization. This ongoing issue has highlighted the challenges of regulating the gambling industry in Sweden and the need for stronger enforcement measures.