Spelinspektionen Bans WiseAvant OÜ over Unlicensed Betting

The Swedish Gaming Authority (Spelinspektionen) has banned WiseAvant OÜ, which provided games of chance to Swedish customers without possessing the necessary license. This is notably the sixth unlicensed operator the authority has banned this year.

According to the Spelinspektionen, WiseAvant OÜ’s website organized lotteries with video game skins. Skins gambling is a controversial emerging vertical that has taken the digital sector by storm, appealing strongly to younger demographics and esports fans.

Skins, for reference, are in-game cosmetics that video game players can collect to change the appearance of their characters or equipment. Additionally, some games allow skins to be bought and sold outside of the games they belong to. This has given birth to the idea that skins can be used as a gambling currency or prize.

WiseAvant OÜ, according to the Spelinspektionen, did just that and allowed players to bet money for a chance to win rare and valuable skins. Losing players lost their bets.

The Swedish regulator also added that the marketing of the unlicensed website occurred mostly on Twitch, an Amazon-owned video game streaming platform.

Skins Gambling Remains a Controversial Vertical

The fast-growing genre of gambling has sparked concerns among regulators and industry critics because of its appeal to younger players. Additionally, as a fairly new vertical, skins gambling is mostly unregulated, adding another layer to the matter.

This isn’t the first time the Spelinspektionen has taken action against a skins gambling website either. In March, the Swedish authority banned three gambling companies, including two skins betting brands. The sites in question were Newera Frozen PTE Limited and Aprodi Ltd, which allowed players to use skins as a currency.

As mentioned, WiseAvant OÜ is the sixth unlicensed gambling website the Spelinspektionen has banned this year. In addition to WiseAvant OÜ, Newera Frozen PTE Limited and Aprodi Ltd, the regulator also cracked down on Galaktika NV, Smein Hosting and True Polygon Entertainment.

The Spelinspektionen’s priority is to channel players to the licensed gambling industry, contributing to its growth.

Speaking of priorities, the regulator is currently preparing to introduce new AML measures from July 1. The country’s financial markets minister, Niklas Wykman and Spelinspektionen’s director general, Camilla Rosenberg, recently commented on the matter, confirming that the new rules will require sports federations, gambling operators and the Spelinspektionen to share information about suspicious betting cases on a common platform.