The Swedish Gambling Act has resulted in strengthened consumer protection for players. But figures show that many Swedes still play at casinos without a Swedish license. Therefore, the government has now presented proposals for stricter rules on the gaming market.
Just over four years ago, the Swedish gaming market looked completely different. At that time, it consisted largely solely of the state gambling alternatives, such as Svenska spel and the physical casino premises that go by the name Casino Cosmopol. But since the world has become increasingly digital, the demand for online casino games has skyrocketed. However, the best casino, you will find by going to the site casinoslotslab.com.
At this time, the commercial online casinos from other countries operated, above all in Malta, which led to many Swedes going there to play. According to the Swedish government, consumer protection at these casinos was not strong enough. The companies also did not pay tax in Sweden and the treasury lost out on large revenues. These were two of the biggest reasons why a new gaming law was introduced in the country in 2019.
Continued gambling at the casino without a Swedish license
The big change in the gambling market as a result of the Gambling Act was that all casinos operating in Sweden or targeting Swedes must now hold a Swedish gambling license. The license is issued by the supervisory authority Spelinspektionen and in order to grant the application, a number of requirements must be met.
These requirements include that each betting company may only offer one bonus and must be directly connected to the Spelpaus suspension register. In addition, all customers must set their own maximum deposit limits per day, week and month.
Despite the gambling law's entry into the market, many Swedes choose to continue playing at casinos that are not licensed in Sweden . This is possible as the Gambling Act only prevents foreign actors from operating in Sweden, but not Swedes from applying to them.
The State Treasury establishes strengthened consumer protection
Between 2018 and 2022, the State Treasury, on behalf of the government, has examined the gambling market to map the effects of the reregulation. In the final report, which was published earlier this year, it is stated that consumer protection is now stronger than before. The duty of care is pointed out as an important part of the development. The duty means that the companies are obliged to intervene in cases where a player shows signs of excessive gambling.
However, among players who choose casinos without a Swedish license, consumer protection does not seem to be the most important factor to take into account. When the Swedish Gaming Authority asked a number of selected players why they play unlicensed, many stated that other winning opportunities and bonus offers were the most important reasons.
The degree of channelization is moving in the desired direction - but does not achieve the goal
There is no doubt that the Swedish gaming market has become more profitable after the reregulation. For several years, the Swedish gambling companies have been responsible for an increased total turnover. In 2021, turnover was measured at SEK 26 billion, which is the highest figure ever.
There are no exact statistics on how much turnover Swedish players generate for casinos without a Swedish license. However, the Public Health Authority has made an estimate, based on data from a British analysis company, which believes that Swedes played for 2.4 billion kroner at foreign casinos in 2021 . Before the reregulation, in 2018, the figure was more than twice as high.
The government is aware that current laws cannot exclude casinos without a Swedish license entirely from the gaming market. A goal has therefore been set that the channelization rate should not fall below 90 percent. This means that at least 90 percent of Swedes' gambling must take place at gambling companies with a Swedish license.
According to the State Treasury's evaluation, the channelization rate in 2021 was measured at 87 percent. Although this is a large increase from what it looked like before the reregulation, when the channelization rate showed 50 percent, the figure indicates that the gambling laws have not yet reached the full desired effect.
Bill proposes stricter requirements for game advertising
Earlier this year, the government submitted a bill to the Riksdag, where new, additional measures are proposed for a more sustainable and secure gaming market. The proposals are largely about shutting out the unlicensed actors from the Swedish market.
Currently, it is not permitted for casinos without a Swedish license to advertise in Sweden aimed at Swedes. In the bill, they want to expand this ban. In addition, a ban on promoting so-called illegal gambling is proposed.
Other gambling advertising may also be restricted through stricter requirements, in order to reduce the possible negative consequences of gambling for money. It is proposed that the moderation that advertising must meet should be adjusted, and that market disruption fees should be able to be handed out to those actors who violate the ban on sending direct mail. The Public Health Agency has previously stated that people with a gambling addiction are the ones who are most negatively affected by gambling advertising. Tightened rules could therefore mean better protection for these people.
Then the new rules can come into force.
The government also proposes that there should be a requirement for a permit for anyone who manufactures, supplies, installs or changes game software for online games. It is believed that this would result in a greater overview of the supply chain in the gambling market and, according to the Gambling Inspectorate, could ultimately mean an increased degree of channeling towards licensed gambling .
Any change in the law regarding licenses for game software is proposed to come into force on the first of July 2023. Other changes, where measures regarding game advertising are included, may, however, come into force as early as the first of January next year.
