Kanon Gaming’s costly oversight that cost SEK 7 million

Lea Hogg June 25, 2024

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Kanon Gaming’s costly oversight that cost SEK 7 million

Kanon Gaming, a licensed operator of commercial online gaming, has been hit with a hefty penalty by Spelinspektionen, the Swedish gambling regulator. The operator has been fined SEK 7 million (€623,000) for failing to comply with its duty of care under the Swedish Gaming Act.

Spelinspektionen’s audit of Kanon Gaming revealed that the operator had not implemented appropriate procedures to protect customers against excessive gambling. The regulator’s review focused on how the operator handled suspicions of excessive gambling among several customers and the measures taken when such behavior was identified.

Duty of care violation

The regulator found that Kanon Gaming had not worked proactively and risk-based enough in cases where customers exhibited problematic gambling behavior. There was no description of what measures should be taken in the event of excessive gambling for young players aged 18-24 years. As a result, the company was found to have violated the regulations regarding the duty of care in the Gaming Act (2018:1138).

Kanon Gaming Limited operates several websites, including casinoepic.se, casinogami.se, frejacasino.se, and lokecasino.se, under its commercial online gaming license.

This incident is part of a broader crackdown by Spelinspektionen on non-compliant operators. Earlier this month, the regulator banned four businesses for offering illegal skin gambling platforms to Swedish consumers. These businesses, Gamevio Ltd, Bigskin Trading Limited, Santeda International BV, and Samilland.co, were found to be providing gaming without a license.

In April, Spelinspektionen had also banned two other skin gambling operators, Newera Frozen PTE Limited and Aprodi Limited. These operators were found to be marketing their services through user-generated material on video platforms like YouTube and Twitch.

Despite the gloomy outlook, some industry experts view these regulatory actions as a necessary step towards a safer and more responsible gambling environment. The hefty fine imposed on Kanon Gaming serves as a stark reminder for all operators to ensure strict adherence to regulatory requirements and duty of care obligations. The future of the gambling industry hinges on the ability of operators to balance customer engagement with responsible gaming practices.

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