Fintech company Zimpler, known for providing secure account-to-account payment solutions, is appealing the recent order issued by the Swedish Gambling Authority. The order, received on July 6, requires Zimpler to halt the provision of payment services with BankID to igaming companies accepting Swedish consumers without a Swedish gambling license. While Zimpler has already taken steps to end business relationships affected by the decision, it seeks clarification on the legal issues raised by the order, not only for itself but for the entire industry.
In 2019, the Swedish gambling market underwent deregulation, allowing consumers to play outside the Swedish licensing system, and non-licensed gambling companies were allowed to accept Swedish players. Payment service providers were permitted to mediate payments to such companies if they weren't targeting the Swedish market. Zimpler supported the government's proposal for changes to the gambling regulations, including IP address blocking against Sweden-based consumers for non-licensed operators, but these measures have not been implemented.
Zimpler's CEO, Johan Strand, expressed support for the Swedish Gambling Authority's goal of strengthening the licensing system and consumer protection in the igaming market. He emphasized the company's commitment to promoting responsibility and compliance in the gaming industry through product development and dialogues with legislators and authorities. Zimpler has already initiated the process of ending business relations with igaming companies lacking a Swedish Gambling license, as part of its strategy to contribute to a sustainable payment market with increased consumer protection.
Despite taking action to comply with the order, Zimpler believes the decision is misdirected and incorrect, leading to limitations on its commercial ability to act that are unsupported by law. The company highlights the need for legal clarity to allow payment service providers to operate without risk of intervention from Swedish authorities. The appeal aims to address several legal questions, including the interpretation of illegal promotion and the conditions under which foreign gambling operators with licenses in countries other than Sweden fall under Swedish Gambling Act jurisdiction.
Furthermore, the appeal addresses how Swedish gambling legislation aligns with the EU's principles of free movement of services, particularly within payments. Zimpler's CEO stresses that legal certainty is crucial for companies to plan and conduct their operations effectively, both in Sweden and across the EU. The appeal is a measure to ensure fairness and predictability in business relations between companies and authorities.
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