Sweden’s appeals court has upheld fines and warnings against Bet365’s operating companies over failures in player protection and mandatory deposit limits.

Sweden’s Administrative Court of Appeal has upheld SEK44 million ($4.4 million) in combined penalties against two Bet365 operating companies after finding breaches of the country’s gambling regulations.

The ruling, issued on 15 October, dismisses appeals brought by Hillside (Gaming) and Hillside (Sports), subsidiaries of the Hillside Group, which operates the Bet365 brand.

The court confirmed fines of SEK4 million for Hillside (Gaming) and SEK40 million for Hillside (Sports), alongside formal warnings issued by Swedish gambling regulator Spelinspektionen.

The violations concerned failures to intervene effectively when customers showed signs of problematic gambling, as well as a deposit limit system that allowed players to select a “no limit” option.

Court confirms player protection failures

The Administrative Court of Appeal in Jönköping agreed with earlier findings that Hillside had failed to meet its duty of care obligations under Sweden’s Gambling Act.

Under Chapter 14, Section 1 of the legislation, licensed gambling operators must continuously monitor customer activity and intervene when gambling behaviour indicates a risk of harm.

The investigation found that Hillside had not acted quickly or effectively enough in several cases involving customers displaying signs of excessive gambling.

According to the court, the operator relied too heavily on automated notifications, including pop-ups, emails and spending reminders, without consistently escalating cases to more direct interventions.

Although Hillside operated an internal early risk detection system, stronger restrictions were not always introduced when customers continued displaying risky behaviour.

In some cases, nearly a month passed before the operator implemented more substantial measures.

The court concluded that the timing and effectiveness of these interventions were insufficient to meet the requirements of Swedish gambling legislation.

Investigation focused on highest-loss players

Spelinspektionen’s investigation examined gambling activity between 17 October and 17 December 2021, initially identifying the ten customers who had recorded the highest losses during that period.

Five customer profiles were subsequently examined in greater detail.

These players demonstrated repeated deposits and significant losses, triggering warnings within Hillside’s internal monitoring system.

However, the regulator found that the operator frequently responded with informational messages rather than more restrictive measures.

The investigation identified delays between the detection of risky gambling behaviour and the introduction of stronger customer protections.

Spelinspektionen argued that continued gambling losses, despite repeated automated communications, demonstrated that the operator’s interventions were not sufficiently effective.

The appeals court agreed that Hillside had failed to respond adequately to the warning signs identified in the selected cases.

‘No limit’ deposit setting breached regulations

A separate part of the ruling concerned Hillside’s deposit limit functionality.

Between 1 January 2019 and 18 April 2022, customers using the operator’s platform could select a deposit setting labelled “no limit”.

Swedish gambling regulations require players to actively establish maximum deposit limits on a daily, weekly and monthly basis.

Although Hillside argued that the system contained a technical ceiling of SEK500 million, the court found that this did not satisfy the legal requirements.

The technical ceiling was neither communicated to customers as an active deposit limit nor implemented in a way that fulfilled the statutory obligation for players to select their own maximum amounts.

As a result, the court determined that the “no limit” functionality was incompatible with Swedish gambling legislation.

The regulator characterised the issue as a long-standing systemic deficiency rather than an isolated technical error.

Hillside challenges regulatory interpretation

During the appeals process, Hillside maintained that its player protection systems were generally effective.

The company argued that the investigation focused on a very small sample of customers relative to its overall player base and therefore did not accurately represent the effectiveness of its broader monitoring framework.

Hillside also questioned the clarity of Swedish regulatory guidance, particularly regarding how quickly operators were expected to intervene when customers demonstrated signs of problematic gambling.

Regarding deposit limits, the operator argued that its technical ceiling meant customers were not genuinely able to deposit unlimited amounts.

It also maintained that the system had been consistent with earlier regulatory guidance.

However, the courts rejected these arguments.

The Administrative Court of Appeal concluded that neither the limited customer sample nor the operator’s interpretation of regulatory expectations was sufficient to overturn the identified breaches.

Financial penalties confirmed

The appeals court also upheld the proportionality of the financial sanctions.

Spelinspektionen had initially proposed higher penalties, but these were reduced during earlier legal proceedings.

For Hillside (Gaming), the penalty was ultimately set at SEK4 million.

For Hillside (Sports), the original SEK65 million penalty was reduced to SEK40 million.

Both the Administrative Court in Linköping and the Administrative Court of Appeal in Jönköping considered the revised penalties, together with formal warnings, appropriate in light of the violations.

The latest decision therefore leaves the two operating companies facing a combined financial penalty of SEK44 million, with the regulator’s findings on duty of care and deposit limits upheld.

Dutch regulator also identifies shortcomings

The Swedish ruling follows separate regulatory action against Hillside in the Netherlands earlier in 2026.

At the beginning of the year, Dutch gambling regulator Kansspelautoriteit (KSA) issued a binding order against Hillside after identifying shortcomings in its compliance with player protection obligations.

The Dutch investigation covered the period from 6 December 2024 to 6 June 2025.

According to the KSA, Hillside had failed to respond adequately to indications that certain customers could no longer afford their gambling activity.

The regulator concluded that the operator had not implemented appropriate interventions despite warning signs relating to customers’ financial circumstances.

Although the Dutch and Swedish investigations concerned different periods and regulatory frameworks, both focused on whether Hillside had taken sufficient action to protect customers displaying potentially harmful gambling behaviour.

Player monitoring remains regulatory priority

The Swedish appeals court ruling highlights the importance regulators place on timely and effective intervention, rather than relying solely on automated responsible gambling communications.

For licensed operators, identifying potentially problematic behaviour is only one part of meeting player protection obligations.

Regulators also expect operators to respond appropriately when warning signs persist, including through stronger restrictions where necessary.

The decision also reinforces Sweden’s requirement that customers actively establish deposit limits, with technical system ceilings considered insufficient substitutes for clearly defined player-selected limits.

With the penalties against Hillside confirmed, the case demonstrates the financial and regulatory consequences operators can face when monitoring systems identify risky behaviour but interventions are delayed or ineffective.

Source: IGamingBusiness