Swedish fintech firm, Zimpler, is taking a stand against an enforcement order issued by the Swedish Gambling Authority (SGA). The directive instructed Zimpler to halt the provision of payment services, which include BankID, to iGaming companies operating without a Swedish license. The SGA has set a deadline for the execution of this order by the 31st of July. However, Zimpler has chosen to challenge this decision, arguing that it is ‘misdirected and incorrect,’ with potentially broad implications.
Zimpler’s Stance and Legal Implications
Zimpler asserts that the SGA’s decision raises several legal issues that need to be clarified for certain payment service providers to conduct their business without fear of intervention from Swedish authorities. The company believes that the order is not only misguided but could also have far-reaching consequences for its operations and the wider payment services sector.
The appeal by Zimpler against the enforcement order shines a spotlight on the ongoing efforts to regulate the gambling industry in Sweden. It highlights the complexities involved in ensuring compliance with local licensing requirements while maintaining a conducive environment for businesses.
The Backdrop of Regulatory Changes and Zimpler’s Proactive Measures
The appeal comes against the backdrop of proposed changes to gambling regulations by the SGA in 2021. One such proposal was the introduction of IP address blocking for gambling companies without a Swedish license to prevent Sweden-based bettors from accessing their services. While Zimpler supported this proposal, it has yet to be implemented by the Government.
In anticipation of these regulatory changes and in a bid to avoid any potential breach of gambling policies, Zimpler took a proactive step in May 2023. The company announced that it would sever business relations with all iGaming companies that do not possess a Swedish gambling license. This decision underscores Zimpler’s commitment to uphold regulatory standards and its dedication to promoting responsible gaming practices.
Johan Strand, CEO of Zimpler, reiterated the company’s support for the SGA’s mission to strengthen the Swedish licensing system and enhance consumer protection in the iGaming market. He outlined Zimpler’s continued investment in product development aimed at promoting responsibility and compliance in the gaming industry. Furthermore, Strand mentioned that Zimpler has proposed measures to bolster consumer protection, including the barring of Sweden-based consumers from games licensed outside of Sweden through IP address blocking and the introduction of B2B licenses for payment service providers.