At the Swedish Consumer Agency Konsumentombudsmannen, Aspire Global has struck home on the aim of bringing a lawsuit against its subsidiary AG Communications.
Karamba falls under the microscope, with the advertising scheme that the KO claims violates the Gambling Act and the Marketing Act, more specifically when it relates to using rewards and free turns as a marketing instrument.
KO states in a media release that: “The company promises bonuses and free spins that, in practice, force the player to play too large sums, or the money is lost.
“In its advertising, the company promises SEK 2,000 in bonuses and 100 free spins. But in order to take advantage of the offer, a player must invest at least SEK 70,000.
“In reality, these are even larger sums. The bonus must be redeemed 35 times within 21 days, according to the company’s rules. And you only have one day to use free spins.”
In addition, the organisation continues to stipulate that data about limitations is published in tiny type, there is a absence of notifications about the prohibition of gambling for those under the age of 18, and there is no obvious data about addiction and where assistance is accessible.
“We believe that the company violates the gaming team’s requirements, both in terms of moderation and how they can use the bonus in advertising,” states Pär Magnusson, process counsel at KO.
“The company entices consumers to play with the help of lures that you will in reality never get to know without playing for huge amounts. This risks affecting everyone who has difficulty controlling their gambling.”
This development follows twice the falling foul of the Swedish regulator Spelinspektionen since being granted a gaming license in December 2018 by Aspire’s Swedish-facing subsidiary AG Communications.
First, a warning and a punishment of SEK 3 m (£ 247,000) were given for breach of self-exclusion regulations, including inability to enforce its domestic log Spelpaus.se, before the penalty of SEK 500,00 (£ 41,757) was obtained for breach of reward regulations.
Tsachi Maimon, CEO of Aspire Global, hit back at the potential new development: “We dispute that the bonus offerings contravene the requirements of moderate marketing in the Gaming Act, and we are critical to having been chosen as the subject to KO’s enforcement in this manner. If the court issues a lawsuit, Aspire Global will object to KO’s interpretation of the law.”