Genesis Global Fight with Sweden’s Gaming Regulator Heads to the Supreme Court

Posted on: March 1, 2022, 05:48h. 

Last updated on: March 1, 2022, 12:28h.

Erik Gibbs Read More
Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

Gaming operator Genesis Global and Sweden’s gaming regulator, Spelinspektionen, are about to face off for the last time. Their ongoing dispute will soon arrive at the bench of the country’s Supreme Court.

Sweden flag
Sweden’s flag contains yellow as a sign of generosity. The country’s gaming regulator isn’t feeling generous as it continues to fight Genesis Gaming in court. (Image: iGaming Business)

Almost three years ago, Genesis Global and Spelinspektionen began their long-running battle. The regulator hit the company with a fine of SEK4 million ($418,800) after it failed to integrate the regulator’s newly-created self-exclusion platform. The regulator calculated the fine based on the turnover at Genesis.

The court agreed last week but hasn’t yet put the case on its docket.

It isn’t common for the Supreme Administrative Court to take up cases involving disputes related to gaming activity. Typically, like in the case of Global Gaming and its license revocation two years ago, an appeals court’s decision is as far as any conflict goes.

Spelinspektionen said in a statement that it is looking forward to the case reaching the high court and is ready for the debacle to end.

Genesis Bucks Sweden’s Regulators

Genesis said at the time that it didn’t need to integrate the Spelapus.se website because it was managing self-exclusion on its own. It asserted that its solution was completely in line with Spelinspektionen’s requirements and refused to pay.

The regulator held its ground, but Genesis took it to court. A judge later cut the penalty in half, arguing that Spelinspektionen had incorrectly calculated the amount due. It appealed again, with the fine being cut in half one more time.

The online gaming market was only about three months old at the time. Therefore, the court determined that Spelinspektionen could not assume future income levels to determine its penalty.

The regulator didn’t like that response. It fought back, demanding that the Supreme Administrative Court take up the case.

Genesis Global Likes to Push Buttons

Genesis has come under fire in Sweden before. Two years ago, the country’s consumer watchdog, Konsumentverket, accused it, along with several other operators, of including “unreasonable” terms and conditions related to withdrawals.

AG Communications, ComeOn Group, Interwetten, Smarkets and even Svenska Spel were on the list alongside Genesis. Konsumentverket stated that it began to examine the contracts in order to determine if they violated Swedish contract law or general principles. It was investigating whether there were “significantly imbalanced” terms, or if they were confusing or lacked transparency.

The consumer agency discovered, among other things, that operators were imposing excessively stringent identity requirements on withdrawals. This was in stark contrast to the money laundering risk assessment that identity checks require. For example, one operator forced individuals to include their eye color, height, weight and ethnic origin.”

Genesis has had trouble in other countries. The UK Gambling Commission (UKGC) slapped it with a £3.8-million (US$4.2 million) fine at the end of January for not following anti-money-laundering guidelines.

Two years ago, the regulator suspended the company’s license for not following the rules. Until today, the UKGC pays special attention to Genesis as a result.