Videoslots hit with Swedish injunction over deposit limit loophole

Videoslots has been slapped with an injunction by the Swedish Gambling Authority (SGA) for breaching Sweden’s temporary Covid-19 deposit limits. SGA investigators found that Swedish players were able to deposit more than the permitted SEK5,000 (£440) weekly limit on online casino games by cancelling withdrawal requests up to two months old. The withdrawals button takes up to seven days before being fully activated, with players able to cancel withdrawal requests for up to 60 days via the site. Players were able to exceed the threshold by cancelling their withdrawals via BankID and having the funds re-added to their Videoslots accounts. The undo withdrawals function was added by Videoslots in February 2020 following customer requests. The firm defended its addition, stating its belief that it would allow players to better control their financial budgets. Responding to the SGA’s inquiry, Videoslots asserted that the undo withdrawals function did not fall under the purview of deposit limits and that any such regulatory inquiry was not relevant. The firm also claimed the temporary restrictions, introduced by the government in June 2020, are contrary to EU law regarding the free movement of goods and services. Videoslots has launched its own lawsuit against the Swedish government over the implementation of these standards. The SGA said: “The regulations state that the upper limit for deposits at commercial online gaming amounts to a maximum of SEK5,000 per week and that the licensee is obliged to ensure that the limit cannot be exceeded.” The injunction against Videoslots also comes with the threat of a SEK250,000 fine to be levied for each week the loophole remains open, calculated three weeks from when Videoslots participates in the decision. A spokesperson for Videoslots said: “Videoslots notes the decision made by the Swedish regulator and is pleased that it confirms compliant implementation of the bonus, deposit and time limits put in place by the Swedish government to counter a perceived increase of risks during the Covid-19 pandemic. “According to the decision, these regulations also prohibit the withdrawal-related functionality which remained in question. We will comply and remove this functionality, having already offered to do so during the assessment,” the operator explained. However, the Swedish licensed firm took aim at the SGA and the Swedish government over the ambiguity of the deposit limit regulations. “We do not, however, believe that we were in breach of the Covid-19, or any other regulations, and call for greater clarity to aid responsible operators like ourselves. Furthermore, we maintain our position that these regulations are both unreasonable and unjustifiable,” the firm said. “Not only are they contradicted by facts and damaging to licensed operators, they are also completely counterproductive to their declared aim of player protection and push players into the arms of illegal operators. We will therefore continue to challenge these regulations,” Videoslots added.