Malta-based Bet365 operators lose appeal over Swedish gambling breaches

Sweden’s Administrative Court of Appeal has upheld financial penalties totalling SEK44 million, which is equivalent to €3.9 million, against two companies operating bet365, following breaches of the country’s gambling legislation.

The court upheld a SEK40 million penalty against Hillside (Sports) ENC and a SEK4 million penalty against Hillside (Gaming) ENC, alongside warnings issued by Sweden’s gambling regulator, Spelinspektionen.

Both companies are registered in Malta and are also listed in the Malta Gaming Authority’s licensing records. The companies operate bet365’s sports betting and online gaming services, respectively.

The penalties relate to the companies’ activities in Sweden and their compliance with local player protection and deposit limit requirements.

The case concerned the companies’ handling of customers showing signs of excessive or problematic gambling between 2019 and 2022. The court agreed with the regulator that the operators had not consistently taken sufficiently prompt and effective action to protect affected customers.

According to the findings, the companies relied heavily on automated communications, including pop-up messages, emails and spending reminders, while escalation to manual reviews and stronger restrictions was delayed in some cases.

Swedish gambling legislation requires licensed operators to monitor player activity continuously and intervene when necessary to prevent gambling-related harm.

The court also upheld findings concerning the operators’ deposit limit settings. Between 1st January 2019 and 18th April 2022, customers could select a “no limit” option instead of actively setting an upper deposit limit for daily, weekly and monthly deposits.

Although the platform had a technical ceiling of SEK500 million, that ceiling was not communicated or enforced as an active deposit limit. The courts found the arrangement incompatible with Sweden’s statutory requirements.

Sweden’s gambling regulator initially imposed penalties of SEK65 million against Hillside (Sports) and SEK14 million against Hillside (Gaming) in April 2023. The Administrative Court in Linköping subsequently reduced the penalties to SEK40 million and SEK4 million, respectively. The Administrative Court of Appeal in Jönköping upheld those amounts, finding that the warnings and financial penalties were proportionate.

Hillside had argued that its early risk detection system was generally effective, that the regulator’s guidance lacked precision regarding intervention timing, and that the “no limit” setting was subject to a technical cap. The appeals court rejected the arguments as insufficient to overturn the findings.

The ruling follows a separate action in the Netherlands, where the Dutch gambling regulator, Kansspelautoriteit, imposed a binding order on Hillside earlier in 2026 concerning its handling of customers showing signs that they could no longer afford their gambling.

The Swedish ruling leaves the combined SEK44 million in penalties and the warnings against the two companies in place.