Swedish Courts Reduce Sanction Fee Against Hacksaw Studios After Appeal

The Administrative Courts in Sweden have reached a final agreement regarding the sanction fee imposed on Hacksaw Studios by Spelinspektionen, the country’s Gambling Authority, following findings that several unlicensed operators had been offering the developer’s games in violation of the Gaming Act.

In January 2024, Spelinspektionen initially issued a penalty of SEK 2.6 million after discovering Hacksaw Studios’ content being made available through operators that were not licensed to offer gambling services in Sweden. The authority determined this as a breach of existing gaming regulations.

However, Hacksaw Studios contested the decision, asserting that the company uses geoblocking measures specifically designed to prevent access to its games in jurisdictions where operators are not appropriately licensed. “A developer cannot take full responsibility for its customers' compliance and no developer can guarantee that operators will not attempt to make its software available in markets where the operator does not hold the necessary licences,” the company stated during its appeal.

The case was brought before the Swedish Administrative Courts, which acknowledged the developer’s arguments while maintaining that a breach of the law had still occurred. In the final ruling, the court declared, “The Gambling Act is applicable and violations have occurred,” and concluded that “a warning is justified, but the penalty fee must be reduced.”

The sanction was ultimately lowered significantly to SEK 20,000, equivalent to approximately $2,037.70. The reduction was attributed to Hacksaw Studios' cooperation with Spelinspektionen and the prior implementation of geoblocking software before the regulatory investigation began.

This case arrives amid increasing scrutiny of Spelinspektionen itself. The Swedish National Audit Office recently criticized the authority, stating it had failed to meet expectations. In response, the Gambling Authority has pledged to streamline its processes and improve operational efficiency going forward.

By fLEXI tEAM