United Lottery Solutions has been issued with a warning and fined SEK700,000 (£58,000) by Sweden’s Spelinspektionen.

The penalty comes after a review by the regulator in the country found that the company, through website lottoland.se, had organised betting on the Eurojackpot which is licensed by state-owned Svenska Spel. This had been done without permission from Svenska Spel.

According to Sweden’s game law, only public utility and state can offer traditional lotteries and companies with a Swedish betting license are not permitted to offer betting on lottery outcomes without the permission of the licensee.

United Lottery Solutions was also found to have provided scratchcards online, also not covered by the company's licence.

The Spelinspektionen stated: “The gaming company has made a correction, but the violations have been going on for a long time and are judged by the Gaming Inspectorate as serious.

“On its website, United Lottery Solutions continues to offer betting on lotteries organised by players outside the Swedish licensing system. This is permitted under Swedish law, but the company has not been sufficiently clear with information that customers do not participate in actual lotteries, but in betting on the outcome of lotteries.

“United Lottery Solutions receives a warning from the Gaming Inspectorate and shall pay a penalty fee of SEK700,000. The fee is based on the severity of the infringement and the company's turnover on the Swedish market.”

Nigel Birrell, CEO of Lottoland, commented: “We are aware of the notice on the Swedish Gambling Authorities (Spelinspektionen), website and are currently in on-going communication with them about this matter."