Swedish Court Reduces Hacksaw Gaming Fine: Why $260K Became $2K
Court Ruled: The Developer Is Not Fully Responsible
In 2024, the Swedish Gambling Authority Spelinspektionen found that Hacksaw Gaming‘s games were available through two unlicensed operators.
This violated the provisions of the local gambling law. As a result, the company was initially fined 2.6 million SEK (approximately $260,000).
However, the developer appealed the decision, and the court sided with the company. Hacksaw proved that it uses geoblocking, and therefore is not directly responsible for the actions of unlicensed partners.
Geoblocking Worked: Court Reduced the Fine
The court took into account that Hacksaw Gaming:
- had already implemented geoblocking software that prevents users from unauthorized regions from accessing the games;
- actively cooperated with the regulator during the investigation;
- does not have full control over how partners distribute its products.
As a result, the court ruled that:
- a violation did indeed take place,
- a warning to the company was justified,
- but the fine should be reduced to 20,000 SEK ($2,037.70).
Why Was the Original Fine So High?
The amount of the penalty is directly tied to the company’s financial performance. Theoretically, the maximum fine could have reached 4.34 million SEK.
However, the court considered Hacksaw Gaming’s efforts to comply with regulations and recognized the level of responsibility as limited.
What’s Next?
Following this case, Spelinspektionen faced criticism from Sweden’s National Audit Office. The regulator promised to simplify internal processes and review its approach to evaluating violations.