Yggdrasil Got Fined in Sweden for SEK300 000

On March 22^nd, 2023 Yggdrasil, a player in the gaming software industry obtained its license marking the beginning of an era where it could develop distribute and integrate its gaming software into Sweden’s online gaming market. The license granted will be in effect through June 20, 2028. However, things took a turn on January 16, 2024, when regulatory authorities known as Spelinspektionen began investigating operators in Sweden and discovered the developer’s association with one such entity.

This discovery went against Chapter 11 Section 6 of the Swedish Gambling Act which prohibits software developers from collaborating with parties. In response to this breach identified on January 23, 2024 due to an oversight related to a retail contract issue, Yggdrasil promptly took action by ensuring that they no longer provide or modify gaming software for operators.

Acknowledging Yggdrasil’s efforts to rectify the situation swiftly and comply with regulations, Spelinspektionen emphasized the importance of all license holders following the established rules. Despite avoiding revocation of its license status by taking measures following this incident, they consequently faced penalties.

The fee structure ranged from a minimum of SEK5,000 to a maximum of 10% of Yggdrasil years revenue potentially reaching up, to SEK580,000 based on the developer’s 2023 sales of €514,566 (SEK5.8m). This incident follows actions by Spelinspektionen, such as imposing a SEK2m penalty on Casino Cosmopol for AML violations and issuing a strong warning to Svenska Spel.

Facing scrutiny, Yggdrasil’s agile compliance response avoided losing its license and emphasized the importance of solid agreements and careful navigation through the complex regulations in the online gaming industry.

The Swedish regulator added:“Yggdrasil has promptly taken corrective action and removed games and all other types of assets belonging to Yggdrasil from the website in question and ceased the violation since it was notified by the Gaming Authority,” reads the decision. The collaboration cannot, however, be considered to have been active in a different way than what one must normally be able to expect from a company that has chosen to operate licensed activities under supervision.”

More On Yggdrasil

Since its establishment in 2013, Yggdrasil has grown significantly in the gaming development industry. The company, named after the world tree from Norse mythology that links realms, has received numerous awards for its consistent creativity and commitment to creating captivating games. Notable among these accolades are the titles of Slot Provider of the Year and Innovator of the Year.

Source:

“Swedish regulator fines Yggdrasil SEK300,000”, igamingbusiness.com, March 25, 2024.

By Ivan Stefanovic