Sweden Gambling Laws
The gambling industry generated a gross yield of 115 billion dollar back in 2016 – this figure has steadily increased, urging many national governments to take a closer look at operations within this industry. Many national governments today still own or operate a variety of gambling operations. In the European Union, legislations and laws vary from country to country with no blanket law being applied at EU-level. The only requirement is that countries conform to Treaty on the Functioning of the European Union (TFEU). Hence, gambling is legal across member states although operators are often subject to gambling laws stipulated and enforced by national governments. Many countries, including the UK, have of recent re-evaluated their gambling laws and policies in an attempt to regulate taxation within the sector and foment responsible gambling amongst players.
Why regulate the market?
Having regulated online casino operators has several benefits. Players can play safely, knowing that they are using software and probability applications which are according to pre-set standards. Online casinos are duty-bound to be transparent and implement several processes to ensure players adhere to their rules. In this way, for example, the number of underage players at online casinos has significantly decreased (although the UK gambling commission still reports gambling amongst underage individuals).
Swedish Gambling Authority questions enforceability of deposit limits on online gameplay As customers stayed inside, legislators sought to combat problem gambling and to ensure that players could have a responsible gaming experience when accessing online casino websites. The current gaming laws in Sweden place all the power of gambling in the hands of a state-owned monopoly. Things are changing however, as the European Commission has put great pressure on Sweden to open the country the industry to competition from foreign operators. The threat of EU sanctions has prompted Swedish lawmakers to get serious about making changes to the current. Swedish Gambling Report Calls for Stricter Measures for Nation’s Operators. The government launched the inquiry in 2018 to aim to improve Sweden's gambling law; The report calls for a daytime online casino ad ban, a new gambling product classification system. Information to the Swedish Gambling Authority §21 Those with a licence to provide gambling with token gambling machines in locations other than at a casino in accordance with Chapter 5, § 1, or a licence according to Chapters 7 and 8 of the Gambling Act (2018:1138), must, for the.
Gambling laws in certain jurisdictions have also led to an uneven playing field between the State and a private operator. Restrictions also apply for residents of one country to play in an online casino that has its servers located in another. This is one of the reasons why European operators have so much trouble accessing the North American market.
Gambling laws in the UK
In the UK, gambling is regulated by the UK Gambling Commission of which functions where set up under Gambling Act 2005. This executive body is responsible for regulating arcades, betting, bingo, casinos and slot machines. This commission and recent changes to gambling laws brought the UK into the reality of modern gambling, with specific attention given to online casinos.
The Act’s three main objectives that fall with the remit of commercial gambling are:
- The prevention of gambling as an illicit activity used to facilitate and support criminal activity or encourage disorder
- Verifying that gambling is carried out in a fair manner
- Safeguarding minors and vulnerable persons from any suffering or exploitation which could arise from gambling
So who needs a license?
Providers of commercial and remote gambling services (such as online gambling) are required to have a licence if operating within or offering their services to individuals residing in Great Britain. There are exemptions for premises holding an alcohol license where certain games (eg. Poker) may be exempt from regulation but are still required to follow a code of practice which stipulates limitations with regards to the stakes and prizes.
Private gaming (defined as gambling within a place to which the public do not have access) is permitted by the commission. It is subdivided into domestic gaming and residential gaming. There are still complex legal guidelines which define where gambling activities can take place and any arrangements made; the commission recommends seeking legal advice before organising events which involve gambling.
Further UK legal resources for licensing and gaming.
What about players?
Whilst players who gamble online do not need a licence they must be over the legal age of 18. Online casinos, however, require a licence issued by the Gambling Commission in order to accept players residing in the UK.
There are some jurisdictions which have a special licensing exemption, such as countries in the European Economic Area, the EEA. Other countries which have such an exemption include some countries within the Commonwealth such as Antigua, Barbuda and the United Republic of Tanzania.
Gambling laws in Sweden
The Swedes have a long history of gambling, dating back to the Vikings. In fact, legend has it that in the 11th century, the Swedes settles a land dispute with Norway over a game of dice. In Sweden, the Swedish Gambling Authority is known as Lotteriinspektionen. This authority is tasked with “ensuring the safety, legality and reliability of the country’s gambling industry”[ https://www.lotteriinspektionen.se/en/].
Today Swedish gamblers only had access to four land-based casinos which belong to a single state owner operator known as SvenskaSpel. The national government created a monopoly to reduce illegal gambling and protect the customer. Private operators found a lot of obstacles to operating in the country and competing fairly with the state-owned, Svenska Spel. This spurred a mushrooming of online gambling companies offering online services to individuals living in Sweden but based in jurisdictions such as Malta and Gibraltar which facilitate setting up such businesses as well as significant corporate tax benefits.
Sweden’s new gambling law
In 2018, Sweden voted in a new gambling regulation which will come into effect on the 1st January 2019. The law was passed following pressure from several Swedish gambling operators and the EU, which saw Sweden’s monopolistic attitude went against the block’s philosophy of free trade.
Under the new law all online operators offering their services to people in Sweden will require a Swedish licence. find a full list of FAQs about laws and regulations for Swedish players.
In several ways, Sweden’s new gambling law is analogous to that of the UK. Online gambling will be open to players over the age of 18, whereas land-based casinos will only be accessible to over 21s. Players will be given easier options to bar themselves from gambling sites and promotional material. The law focuses primarily on improving game security, enhancing player protection and opening the country to more liberal competition practices.
Sweden Gambling Laws Against
Summing up the main points
- Commercial Companies will be subject to 18% tax
- Not-for-profit organisations are exempt from tax
- License prices will vary from 400 000 – 700 000 SEK
- Age limit of 18+ for online gambling and 21+ to enter a physical casino
The biggest challenge which this law will bring is the restriction of bonuses to just one welcome bonus. This means that operators will not be able to provide weekly bonuses, loyalty rewards and the host of bonuses and promotional offers they currently do. When the new law comes into force all players will be considered new, so operators will have the possibility to entice them with one last bonus. However, beyond the welcome package, operators will need to find new ways to keep players loyal and not lose them after the bonus.
With this new law six different licences will be available, based on the type of operation, such as a non-profit or a cruise ship. Licences also vary in cost and purpose, with some licences available to online casinos and others open to game creators.
References
Gambling Commission: Licensing, compliance and enforcement under the Gambling Act 2005: policy statement (PDF) [Accessed 4 Dec 2018]
GOV.UK: Gambling Commission [Accessed 4 Dec 2018]
Wikipedia: Gambling Commission [Accessed 4 Dec. 2018]
Statista: Casino industry – Statistics & Facts [Accessed 4 Dec 2018]
Sweden Gambling Laws List
Lotteri Inspektionen (Swedish Gambling Authority) [Accessed 4 Dec 2018]
Gambling Commission: How we regulate the gambling industry [Accessed 4 Dec 2018]
European Commission: Online gambling in the EU – Growth [Accessed 4 Dec 2018]
Wikipedia: Svenska Spel [Accessed 4 Dec 2018]
European Casino Association: Sweden [Accessed 4 Dec 2018]
Gambling Commission: Young People and Gambling [Accessed 4 Dec 2018]
The online gambling industry has grown rapidly over the past few years in many regions across the world. While there are hundreds of betting sites to choose from with plenty of games to enjoy there are a few restrictions depending on your region. Sweden has been considered one of the most restrictive countries in terms of gambling activities until recently. It was only in 2018 when they started working on drafting new regulations that would open their gambling market up to foreign operators. Until then players could only take part in state run gambling activities. The new Swedish Gambling Act The new Swedish Gambling Act was voted in by Parliament on the 14th of June 2018. It came into effect on the 1st of January 2019 and focuses on gambling for real money. With the new gambling act in place there is now a system of licensing gaming companies to allow them to legally offer betting to Swedish residents. In December 2018 there were about 88 online gambling operators that have applied for licenses. Of these 60 were given initial approval as of January 2019. All operators that have been granted a license are required to obtain certification for their technical solution by a Swedish accredited body before 1 July 2019. Any operators who fail to obtain this certification will have their license revoked. How the new act affects gambling in SwedenSweden has always been rather strict when it comes to the gambling market. And with the new gambling regulations in place they still aim to remain in control by strictly regulating sites. The main focus of the bill is to ensure the safety and security of residents taking part in online gambling activities. This is why the new bill has a clause stating that licensed operators are required to protect players from excessive gambling activities by adding restrictions and self-help options to their site. Any operator offering unlicensed services to Swedish gamblers will have to face the consequences. These include having transactions blocked to and from gamblers and possibly having their site blocked. All Internet Service Providers are required to set up warning messages for websites that offer unlicensed gambling. Furthermore, all advertising and promotion of gambling without a license will be seen as a criminal offense. Participating parties in such illegal activities will be prosecuted. While Sweden has finally opened their online gambling market to foreign operators there are strict rules and regulations. Any and all operators who offer illegal services or fail to follow the regulations will be prosecuted. The idea is to provide Swedish gamblers with a safe and secure gambling experience with little to no dangers involved. Spelinspektionen, the Swedish Gambling Authority, will be focused on regulating the market and curbing all illegal activities. Spelinspektionen has been reinforced by the government and given more and sharper tools to increase effectiveness. Unlicensed operators can therefore expect to be shut out of the market. All license-holders who operate outside of the law will have their license revoked. Furthermore, the Swedish Agency for Public Management has been given instructions to follow up the reform and make amendments to the act if goals of reform are not achieved. This according to the Minister for Public Administration, Ardalan Shekarabi, is to help regulate a market that has been unregulated for a very long time. The focus being on regaining control of the Swedish Gambling Market and protecting citizens from unlicensed operators, possible scams and criminal activities. Where to place your betsSweden Gambling Laws Explained
While this new open door policy is fantastic news for both online gamblers and Sweden as a whole, based on increased tax revenues, it does also mean consumers need to take the time to review the history and reputation of the slew of new operators they will now have legal access too.“It is important to for the Swedish gambling community to not become overwhelmed by choice” said Mikael Torstensson of Bästa bettingsidorna “Now more than ever it is important to pick a trusted betting site with a long history of good customer service and honoring big wins.”As new operators are granted licenses and make, or break, their names in this exciting new chapter in Sweden’s gambling history here is a check list of items your ideal betting site should offer:• Have a full valid license to operate in Sweden
Sweden Gambling Laws 2019
• Have a proven track record of honoring wins of all sizes• Have been vetted by a trusted Swedish betting community for great odds, fair play and of clear bonus termsThis need for security and additional vigilance is especially important as Swedish regulators transition operators from the initial approval phase into the tested and approved phase where they will then be awarded their full Swedish betting license.