Operators praise Swedish government review into “toothless” Gambling Act

LeoVegas Group and Svenska Spel have both welcomed the Swedish government’s review of the country’s Gambling Act, with the former’s CEO describing the current framework as “toothless”.

Speaking to EGR, LeoVegas Group CEO Gustaf Hagman and Svenska Spell CEO Anna Johnson both said the decision, announced yesterday, 20 February, was a positive step for the country.

The review will centre around closing a loophole that allows unlicensed operators to remain live in the market without impunity if the sites don’t include the Swedish language or payment methods in Swedish krona.

Led by the chair of the National Board for Consumer Disputes Marcus Isgren, a report is expected to be handed back to government by 17 September.

The review comes after imploration from the Swedish Trade Organisation for Online Gambling (BOS) to the government to close the loophole.

Hagman, who has been a vocal in his dissatisfaction with the Swedish regulations in the past, told EGR the decision was a “positive development”.

The LeoVegas Group boss said: “This is a positive development and an important step by the Swedish government. It has been abundantly clear that the Gambling Act has been toothless and that the black market is thriving, with unlicensed operators ruthlessly targeting Swedish customers.

“We likely have a channelisation rate of around 70% to 75% for online casino, which is unacceptable. I’m pleased that minister Niklas Wykman has finally decided to investigate the matter. Let’s hope that we can have new legislation in place before the next Swedish elections.

“If you accept Swedish customers, you should hold a Swedish licence, provide Swedish player protection standards and pay your taxes in Sweden. It’s that simple.”

Johnson, who heads up state-owned Svenska Spel, said last month that Sweden is reminiscent of its grey market era before re-regulation in 2019.

When approached by EGR, Johnson echoed Hagman’s comments for the need to protect consumers from the black market.

She said: “We welcome the review of the Gambling Act, particularly the evaluation of the directional criteria and the opportunities to strengthen the Swedish licensing system.

“This is something we at Svenska Spel have long called for. It is crucial that we enhance the protection of Swedish consumers and prevent unlicensed operators from continuing to operate outside the regulatory framework.

“We will closely follow the progress of the review while continuing our efforts to ensure a safer and more sustainable gambling market.”

Elsewhere, BOS general secretary Gustaf Hoffstedt also welcomed the review following the trade body’s successful lobbying.

Hoffstedt said: “We have advocated an amendment to the Gambling Act in this regard ever since the re-regulation of the Swedish gambling market in 2019.

“It became apparent fairly immediately after the re-regulation that the market was leaking like a sieve. This was partly because many unlicensed gambling companies were able to continue to accept Swedish gambling customers, as long as they avoided the Swedish language and the use of Swedish currency.

“We reminded the government of this, and now we are being listened to. It is very welcome.”