Feb11
Kindred Receives Sanction Fee of SEK 100 Million from SGA
March 19, 2020 Alex Hoffmann
Online gambling company operator from Valletta, Kindred Group, has once again breached bonus regulations, this time in Sweden. The owner of multiple iGaming brands including Unibet, 32Red and Maria Casino has received a warning and sanction fee from the Swedish Gambling Authority in the range of SEK 100 million which is $9,686,457 when converted.
The regulator has confirmed non-compliant activities in early 2019 in regards to offering incentives and Henrik Tjärnström, chief executive officer has immediately responded.
Kindred to Appeal SGA’s Decision
As confirmed by the CEO, Kindred Group has been issued a warning and sanction fee for breaching the bonus regulations within the Swedish market. Tjärnström is clearly disappointed about the decision, claiming that the Group had reached out to the SGA about the problem in a timely manner back in 2018.
According to his statement, the company has never received any guidance from the Swedish Gambling Authority on the framework legislation, stating that the regulator had left it to the Swedish courts to determine whether these actions are illegal.
Tjärnström also commented the SGA’s lack of competence to address another burning issue that is shaking the market, referring to unlicensed operators who still successfully target Swedish customers. He concludes by saying that the Group immediately changed its views on offerings after receiving a notification from the regulator in 2019.
“We will, of course, appeal the SGA’s decision, and it is imperative to stress that the SGA’s decision does not become legally enforceable until the appeal process has been exhausted, and a final judicial decision has been issued. Only then will the sanction fee become payable and Kindred will, of course, comply with any final decision in due course. It is anticipated that the appeal process is likely to last several months if not longer,” said Tjärnström.
This isn’t the first time that Kindred has received a penalty for non-compliance. Back in August 2019, the group was punished by KSA (Netherlands Gambling Authority) with EUR 470,000 for accepting bets from Dutch customers without a license.
Kindred has also decided to appeal the KSA ruling while awaiting the secondary legislation from the Ministry of Justice and Security. Nonetheless, the group respects any requests from the Dutch regulator and is fully compliant with the rules.
Breakthrough in Pennsylvania
While experiencing troubles regarding regulations in Europe, the Kindred Group is doing quite well across the ocean in the United States. After going live in Pennsylvania with its sportsbook and casino at the end of November 2019, the company has even managed to strike a landmark deal with the National Basketball Association and gain access to its official betting data.
After landing a historic arrangement with NBA, the gambling company is also obliged to collaborate with the league on multiple initiatives concerning the game’s integrity.
Manuel Stan, US senior vice president of the Maltese gambling establishment said on the occasion that the entire team is very proud to partner up with the world’s best professional basketball competition, stating it would add further value to its already first-class betting experience.
Source:
“Henrik Tjärnström responds to SGA warning and fine”, kindredgroup.com, March 18, 2020.
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This is really a gigantic penalty for the company, hope they’ll get smarter in the future. The market in Sweden has been regulated in January 2019 and it clearly meant business since day 1, so Kindred should’ve anticipated it due to their previous history with KSA, instead of acting so irresponsible, again.