Zimpler wins legal battle against Swedish Gambling Authority

February 12, 2025

Zimpler wins legal battle against Swedish Gambling Authority

The Swedish Court of Appeal has delivered a significant ruling against Spelinspektionen, the Swedish Gambling Authority, in a legal battle involving Zimpler, one of the country’s largest fintech payment providers. This ruling impacts Zimpler and has broader implications for Sweden’s regulated gambling market and financial services sector.

The Initial injunction by the Swedish Gambling Authority

Spelinspektionen is responsible for regulating Sweden’s gambling industry. Its main objective is to ensure that gambling services operate legally and responsibly. Zimpler is a Swedish fintech company specialising in digital payment solutions. It enables fast and secure transactions, often integrating BankID, Sweden’s widely used electronic identification system.

In July 2023, the Swedish Gambling Authority served Zimpler with an injunction, requiring them to cease BankID-based payment services to illegal gambling operators. The regulator claimed that these services enabled unregulated gambling and eroded the regulated market.

Swedish Gambling Authority’s argument against Zimpler

By providing payment services to unlicensed businesses, Zimpler was supposedly indirectly encouraging illicit gambling, according to the Swedish Gambling Authority. They claimed this would undermine Sweden’s efforts to govern and control the gambling business.

Zimpler challenged the ruling on the grounds that the Swedish Gambling Authority had no legitimate right to set these limitations. The fintech company maintained that its services merely provided a payment solution and did not constitute direct involvement in illegal gambling.

The Administrative court’s ruling

The Administrative Court decided in May 2024 in favour of Zimpler, arguing that Spelinspektionen had no legitimate right to issue the injunction in its present form. The court ruled that the Swedish Gambling Authority had overreached its administrative powers. The decision stressed that a payment service provider is not responsible for checking gaming operators’ permits.

Though the Swedish Gambling Authority appealed, on 7 February 2025 the Court of Appeal affirmed the ruling of the Administrative Court. The court ruled once more that the gambling regulator did not have the legal right to enforce the initial Zimpler restriction.

Implications of the ruling

This judgement creates a legal precedent that restricts how much the Swedish Gambling Authority can govern payment services. It emphasises the difference between gambling businesses and financial service firms.

Zimpler has been proactively aligning with Sweden’s gambling laws since the beginning of their court fight. Zimpler announced in May 2023 that they intended to stop working with unlicensed gaming sites, hence more compliance with Swedish legislation.

Impact on Sweden’s gambling market

This decision makes it clear that payment processors are not accountable for enforcing gambling laws, so it might have an impact on other fintech companies. The Swedish Gambling Authority could seek legislative changes to regain control of payment services tied to gambling.

Regulating fintech companies presents similar challenges in other European countries. This decision could influence legal systems in nations like the UK and Germany.