Swedish regulator issues unlicensed warning to PSPs

A number of Swedish payment service providers (PSPs) have been warned to not conduct business with unlicensed gambling operators by the country’s gaming authority Spelinspektionen.

The regulator has written a letter than makes clear payment firms which work in cooperation with unlicensed operators were violating the country’s Gaming Act.

“Payment service providers operating in the gaming market cannot transfer bets or winnings to and from unlicensed gaming companies, which contribute to the increased likelihood of money laundering, social damages and unfair competition,” explained Patrik Gustavsson, head of operations, Spelinspektionen in the letter.

The letter continued by explaining its Gaming Act was developed to enhance player protection and supporting unlicensed operators may lead to the PSP in question being “guilty of criminal mischief” due to unlicensed operators not being subject to the country’s money laundering and terrorist financing regulations.

“In a regulated market, it is important to protect license holders from unlicensed competition which are not authorised to operate in the Swedish market,” continued Gustavsson.

“Payment service providers that mediate bets or profits to and from unlicensed gaming companies contribute to unfair competition for the gaming companies licensed under the Gaming Act.”