In recent news, Finnplay Group, a global Finnish iGaming development company, is set to acquire the remaining IP (Intellectual Property) rights of one of the latter’s subsidiaries, Nano Casino, from the Swedish gambling operator, Global Gaming. In this acquisition, Finnplay is to pay €500,000 to Global Gaming in order to acquire all the rights to operate the subsidiary.
The sale is a consequence of Finnplay’s recent action on one of its Business to Business (B2B) subsidiaries’, Viral Interactive. The company has recently divested it and therefore, Global Gaming has ended its partnership with the B2B subsidiary. Though abrupt, Global Gaming was aware that its white label agreement with Viral Interactive could be ended without prior notice as stipulated in the contract between the two parties. The partnership formally ended last March as Viral Interactive terminated all B2B agreements in regulated markets which resulted in the termination of its marketing agreement with Global Gaming, ultimately affecting Nano Casino operations in Sweden, only after a year after the agreement was made.
Tobias Fagerlund, the chief executive officer of Global Gaming, recently said that the company and its members are very pleased that the Finnplay Group and its partner because they see the future value and potential of their brand: Nano Casino and they will follow its future development with interest.
Last year, July 2019, Global Gaming announced its partnership together with the Finnplay Group and its subsidiary, Viral Interactive, as an effort to enter Sweden after losing its rights to operate earlier that year. The partnership was to provide some relief to Global Gaming as it was slammed by regulatory sanctions, where Sweden’s Spelinspektionen stripped one of the company’s subsidiaries’, SafeEnt’s license to operate in Sweden.
This was because of allegations citing serious breaches in the country’s player protection and anti-money laundering regulations. However, Global claimed that the penalty was disproportionate and was confident that its appeal would be successful. In a bid to have its license reinstated, the company approached the Administrative Court of Linköping without success, as its bid was rejected. In another effort to have this overturned, they went to the Administrative Court of Appeal, which also confirmed the first court’s decision. In a final effort to have the decision overturned, they approached Sweden’s Supreme Administrative Court, to no avail.
In a move to enter the Swedish market once more, Global Gaming entered an agreement with Finnplay, and that agreement allowed Global Gaming to operate through Viral Interactive’s iGaming license.
Global Gaming is not the only company that has been adversely affected by the recent laws implemented in Sweden last January 1, 2019. These laws legalised and regulated iGaming operations and since then, many operators have suggested that the tax rate, operating restrictions, and high competition have impacted their revenue adversely.
In May 2020, Sweden’s regulator Spelinspektionen and the Swedish Tax Agency released the first-quarter figures for licensed gambling operators and the reported revenue amounted to £496.7m, down 1.4% against 2019 Q1’s figures. The figures have been the lowest for any quarter since January 2019, when Sweden re-regulated the gambling market. Despite the growth of online revenue, the recent coronavirus pandemic has adversely affected land-based businesses across Sweden.