Swedish government to commence review of Gambling Act
Regulations set to be investigated to further restrict unlicensed operators targeting the market following a plea from trade body this week
The Swedish government has announced a review of the country’s Gambling Act six years after the market was re-regulated.
The government has appointed Marcus Isgren as the lead investigator for the review, with a report to be presented to the government by 17 September.
Isgren is the chair of the National Board for Consumer Disputes and will “analyse and take a position on how the scope of the Gambling Act can be clarified and expanded”, according to the government.
The capacity of the review has also been hinted at, with the government highlighting the growth of unlicensed operators as a core reason behind launching the probe.
A government press release read: “A review of the scope of application of the Gambling Act will contribute to more unlicensed operators being excluded from the Swedish gambling market, among other things by making the licence requirement apply to more games.”
The announcement comes the same week as the Swedish Trade Organisation for Online Gambling (BOS) argued for such a step in a letter to the government.
Penned by BOS secretary general Gustaf Hoffstedt, the trade body claimed that it remains too easy for black-market operators to target Swedish players.
BOS said that offshore firms only operating with English language sites and deposit methods in euros were exploiting an existing loophole in the regulations.
Hoffstedt suggested the loophole means only unlicensed firms that explicitly target Swedes by using the Swedish language and accepting Swedish krona would be subject to penalisation.
Sweden launched its re-regulated market on 1 January 2019 with an 18% GGR tax rate. The tax rate is now 22% following a four-percentage-point hike last summer.
Licences are required for both B2C and B2B operations, while the market is regulated by the Swedish Gambling Authority (SGA).
At the time of re-regulation, the government set out a channelisation target of 90%. However, recent research from horseracing operator ATG has suggested the rate could be as low as 70% in some verticals.
Niklas Wykman, minister for financial markets, said: “We will stop rogue gambling companies that exploit vulnerable consumers.
“We do this by amending the Gambling Act so that it becomes more appropriate. This is one of the single most important measures for a safer and healthier gambling market.”
Reacting to the government’s decision today, 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 reregulation that the gambling 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.”
Camilla Rosenberg, SGA director general, said: “The Swedish Gambling Authority views this announcement very positively. We have previously drawn the government’s attention to the need for the Gambling Act’s scope of application regarding online gambling to be changed.”