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SGA will appeal against Genesis & AG Communications reduced sanctions

Swedish Gambling Authority appealed against the calculation of the penalty fees to be transferred to AG Communications and Genesis Global.

This is because the Jönköping Court of Appeal recently downgraded the number given despite the finding of a "serious infringement", finding that the amount of the penalty fee should be determined based on the seriousness of the infringement, rather than based on the company's turnover.

The data dates back to April 2019, when AG found Communications and Genesis Global were not connected to the national self-exclusion registry for 12 and nine days respectively.

The former, which offers games through its flagship casino Karamba and ten other brands, received a penalty of SEK 3 million (£ 247,000) and a warning regarding future conduct after Spelinspektionen contacted by people who were able to play on its brands despite signing up for self-exclusion

In addition, Genesis Global, which includes Casino Joy and Vegas Hero as part of its stable, committed similar offenses and was fined SEK 4 million (£ 329,427). The Court of Appeal lowered the penalty fee to SEK 1 million in each case.

Subsequently, Spelinspektionen announced its intention to appeal the judgments to the Supreme Administrative Court, stating that "they do not share the Court of Appeal's interpretation of the provisions on penalties".

The regulator states that the alternative fees adjudicated by the Court of Appeal are "too low" in relation to the seriousness of the infringement and the turnover of enterprises.

It adds that, in order for the penalty fees to be dissuasive and proportionate, it is necessary to take into account the turnover of companies when determining the size.

Moreover, Spelinspektionen also states that the reasoning of the Court of Appeal "infringes both the principles of proportionality and of equal treatment".

The SGA stated in a media statement confirming the intention to appeal against the decision to the Supreme Administrative Court: "The issue of the amount of the sanction fee" to be determined is of decisive importance for all decisions pursuant to Chapter Section 12 of the Games Act, which is linked to a penalty fee.

"It is therefore very important for the management of the application of the law that the decisions of the Court of Appeal are subject to review by the Supreme Administrative Court."

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