BOS highlights unlicensed gambling legislation loophole in Sweden
Operator trade association questions government alteration of gambling act, claiming it plays into the hands of unlicensed sites
Swedish trade association BOS has questioned whether government intervention in the development of the country’s gambling act has led to a loophole which inadvertently empowers unlicensed operators.
In its response to the ongoing inquiry into Sweden’s regulated gambling market, the trade body highlighted an addition made by the government which states that online gambling “not directed at the Swedish market should not be considered to be provided in Sweden”.
This exemption, BOS claimed, was added by the government after an initial gambling licence inquiry which placed additional restrictions on operators.
The restriction applied to games “arranged in Sweden or otherwise enables participation from people who are resident or permanently staying here in Sweden”.
It was designed to combat unlicensed international sites by specifically stating that any site enabled in Sweden could be liable for prosecution if found to be targeting Swedish players.
However, the restriction was removed by the government during the process to greenlight the law and replaced by revised wording.
As a consequence, any operator is free to accept Swedish consumers, as long as the operator uses the euro as currency and English as language, something which is commonplace and generally accepted in Sweden.
Under this exemption, any operator can offer a service to Swedish consumers seemingly without prosecution.
“What greatly complicates measures from authorities is that the legislation allows Swedish gambling customers to participate in games that are not necessarily directed at the Swedish market within the meaning of the gambling act,” BOS wrote.
“It is only when there are requirements for a licence that aggravating measures can be taken.
“The decisive element is whether the gambling site has text in Swedish or offers deposits and winnings in Swedish currency, and that it must be determined by an overall assessment from case to case.
“It is obvious that, since the individual consumer is not legally or actually restricted in their consumption, they can freely choose to consume games at unlicensed online casinos, with unlicensed gambling only a mouse click away,” BOS said in response.
In December, the Swedish Gambling Market Inquiry delivered its long-awaited report into the sector, proposing several measures, including a blanket ban on gambling advertising between 6am and 9pm.
In addition, the inquiry called for greater clarification to be given to the Swedish Gambling Authority’s (SGA) role in prosecuting unlicensed operators.
BOS has previously criticised the Swedish government for the introduction of strict deposit limits, insisting they were unevidenced and would reduce channelisation to licensed sites.