Enlabs has declared it will willingly give up its Swedish online betting and gaming permit, intending to carry out “development work” on its platform before restarting operations.
George Ustinov, Enlabs’ Chief Executive Officer, stated the company is dedicated to integrating Pay & Play functionality into its platform, enabling users to deposit funds instantly without the need for registration.
“The Swedish market is vital for Enlabs. However, our current platform lacks support for so-called ‘Pay & Play’, which is critical for some of the brands we aim to introduce in Sweden,” Ustinov remarked.
“Internal development efforts have already commenced, and we are confident in our technology, licenses, organization, and a well-defined marketing strategy to launch several of our key brands in the summer of 2021.”
Enlabs obtained a license from the regulatory body Spelinspektionen in March 2020 to conduct gambling and gaming operations in Sweden through its leading brand Optibet. Nevertheless, its services will be temporarily unavailable until the summer of 2021, when Enlabs plans to introduce multiple brands into the market.
The representative stated that presently, the Swedish venture only contributes a minor segment of its overall income, thus the effect of the closure on profits is minimal.
Enlabs also possesses a controlling interest in Ninja Casino operator Global Gaming, which was obtained by Enlabs in August 2020 and augmented Enlabs’ holding to 95.8% in November. Global’s brand was previously active in Sweden, but its own permit was rescinded in June 2019 after the Swedish Gambling Authority Spelinspektionen detected “serious shortcomings” in Global’s business practices, especially in anti-money laundering.
In October 2020, the Administrative Court of Appeal in Jönköping, Sweden, affirmed Spelinspektionen’s decision, declaring that Global Gaming “infringed upon multiple regulations concerning gambling accountability and due diligence, and consequently did not comply with consumer protection interests, most significantly, did not safeguard players with gambling issues.”
Enlabs’ income in the third quarter of 2020 increased by 35.5% to €13.6 million, and profit multiplied to €10.3 million, recovering from a 35.0% decrease in income in the second quarter.
Enlabs presently operates in Latvia, Lithuania, Estonia, Belarus, and Malta .com websites. It is also pursuing a license in Ukraine, which legalized land-based and online gambling earlier this year. It has established a legal entity in the nation, which is a prerequisite for securing a license.