Sweden Upholds SEK 44 Million in Penalties Against bet365
Sweden.- 16 October 2026 | www.zonadeazar.com The Swedish Administrative Court of Appeal has upheld penalties totalling SEK 44 million against two companies within Hillside, the group responsible for bet365’s operations in Sweden.
The ruling, announced by Swedish gambling regulator Spelinspektionen on 14 October 2026, confirms warnings and financial sanctions for breaches of player protection obligations and mandatory deposit limit requirements.
Although the violations were considered serious and systematic, the authorities opted to maintain financial penalties rather than revoke the companies’ gambling licences.
Two Penalties Totalling SEK 44 Million
The court’s decision concerns two businesses offering gambling services through bet365.com.
The confirmed sanctions are:
- Hillside (Sports) ENC: a SEK 40 million penalty, approximately £3 million.
- Hillside (Gaming) ENC: a SEK 4 million penalty.
- Combined total: SEK 44 million.
- Additional measures: formal warnings issued to both companies.
The court dismissed the companies’ appeals and supported the conclusions of the previous judicial proceedings.
The decision maintains the sanctions while allowing both businesses to retain their licences.
Violations Occurred Between 2019 and 2022
Spelinspektionen’s investigations examined bet365’s practices between 1 January 2019 and 19 April 2022.
During this period, the platforms allowed certain customers to select a “no limit” option when setting deposit restrictions.
Swedish gambling legislation requires players to establish a numerical deposit limit as part of mandatory consumer protection measures.
However, bet365’s systems did not adequately ensure compliance with this requirement.
The regulator determined that the deficiencies affected both the sports betting and online gaming operations.
A SEK 500 Million Technical Limit
One of the most significant findings concerned an internal technical ceiling of SEK 500 million.
Although the system incorporated this maximum, it did not operate as a deposit limit expressly established by the customer.
Spelinspektionen therefore concluded that it failed to satisfy the requirements of Swedish law.
For comparison, bet365’s Swedish gross gaming revenue during 2021 amounted to:
- Sports betting: SEK 724.5 million.
- Online gaming: SEK 69 million.
The technical ceiling represented an exceptionally large amount compared with the company’s gambling operations in Sweden.
The regulator emphasised that an internal technical restriction cannot replace the statutory requirement for meaningful deposit limits.
Operators’ Duty of Care
Swedish gambling legislation requires licensed operators to take measures to prevent gambling-related harm.
This principle, known as the duty of care, obliges businesses to identify potentially harmful gambling behaviour and intervene when necessary.
Key responsibilities include:
- Monitoring deposit and loss patterns.
- Detecting indicators of problematic gambling.
- Establishing intervention procedures.
- Providing responsible gambling tools.
- Applying restrictions when warning signs emerge.
The court concluded that Hillside had failed to adequately fulfil these responsibilities during the period under review.
The breaches were considered serious enough to justify formal warnings and substantial financial penalties.
bet365 Introduces Corrective Measures
The introduction of improved player protection procedures was an important factor in allowing the companies to retain their licences.
According to the regulator’s assessment, bet365 implemented additional customer monitoring mechanisms.
Important changes include:
Reviews of High Customer Losses
Customers recording monthly losses exceeding SEK 10,000 now trigger a manual review.
Controls for Vulnerable Groups
The company introduced earlier interventions for certain customer categories, particularly:
- Young adults aged 18–24.
- Customers returning after self-exclusion.
Account Restrictions
bet365 has also introduced measures to suspend or restrict accounts when internal systems identify elevated risk indicators.
These improvements were considered relevant when assessing the proportionality of the enforcement measures.
Why the Licences Were Not Revoked
Spelinspektionen considered that the violations could justify significant regulatory intervention.
However, the corrective actions introduced by Hillside, together with its cooperation during the investigation, were important factors in avoiding licence revocation.
The regulator also considered statutory limits on financial penalties, which cannot exceed 10% of an operator’s annual turnover.
The original penalties were:
- Hillside (Sports): SEK 65 million.
- Hillside (Gaming): SEK 14 million.
These amounts were subsequently reduced to SEK 40 million and SEK 4 million, respectively.
The appeals court concluded that the reduced penalties, combined with formal warnings, represented a proportionate response to the violations.
Court Dismisses Hillside’s Appeals
The companies challenged the enforcement measures through the Swedish administrative court system.
However, the Administrative Court of Appeal agreed with the previous court’s assessment and confirmed that both companies had breached their legal obligations.
The ruling specifically upheld findings concerning:
- Failures to comply with player protection duties.
- Breaches of mandatory deposit limit requirements.
The court also determined that the reduced penalties were proportionate to the seriousness of the infringements.
Consequently, the appeals were dismissed and the warnings remain in effect.
bet365 Retains a Significant Swedish Market Position
Despite the sanctions, bet365 remains one of the country’s leading gambling operators.
According to the Blask Index, the company ranks fourth in the Swedish market, behind:
- AB Trav och Galopp (ATG).
- Svenska Spel.
- NV Casino, an offshore operator.
The presence of an unlicensed platform among the market’s largest participants reflects one of the challenges facing Swedish gambling regulation.
Authorities continue seeking to strengthen consumer protection while ensuring gambling activity takes place within the legal framework.
Sweden Strengthens Regulatory Enforcement
Over recent years, Spelinspektionen has intensified its supervision of licensed gambling businesses.
Operators facing recent investigations or enforcement action include:
- Betsson.
- Snabbare, part of ComeOn Group.
- Mr Green.
- ATG.
- Kanon Gaming.
These proceedings have addressed player protection, anti-money laundering compliance and other regulatory obligations.
The ruling against Hillside forms part of this wider enforcement environment.
Debate Over the Unlicensed Market
The Swedish Trade Association for Online Gambling (BOS) has raised concerns about the performance of the regulated market.
According to the association, approximately 16% of players currently use unlicensed gambling platforms.
BOS argues that certain regulatory requirements may affect the competitiveness of licensed businesses.
However, this position forms part of a broader debate concerning the balance between consumer protection and the legal market’s ability to attract customers.
The bet365 penalties demonstrate that licensed operators remain responsible for complying with existing requirements regardless of commercial pressures.
Next Steps and Impact
The judicial confirmation of SEK 44 million in penalties represents an important development for bet365 and Swedish gambling regulation.
Although Hillside (Sports) and Hillside (Gaming) will retain their licences, both businesses must continue maintaining effective player protection procedures and deposit limits.
The ruling also reinforces the importance of implementing meaningful and verifiable safeguards rather than relying solely on internal technical restrictions.
For the Swedish market, the case highlights Spelinspektionen’s role in enforcing regulatory obligations and responding to breaches.
The principal challenge will be ensuring operators maintain effective early intervention procedures, particularly for vulnerable customers, while the debate surrounding the competitiveness of Sweden’s regulated market continues.
Editó: @fonta
