Spelinspektionen Spells Trouble For Swedish eSports Betting

eSports has seen an amazing rise to fame over the last few years, taking what was once merely an entertainment form designated as ‘child’s play’ or a hobby for those who are socially inept, and raising it to the heights and spectacle of ancient gladiatorial events.

Following the finals of any fan-favourite eSport such as like Fortnite Battle Royale, Counter-Strike: Global Offensive (CS:GO), Overwatch, PUBG, League of Legends and Dota 2 is a heady event complete with fireworks, overly excitable announcers, half time shows, major headline sponsorships and of course millions in prize money.

Most recently 16-year-old American Fortnite player, Kyle “Bugha” Giersdorf, won the solo division and took home an astounding $3 million cash prize!

✓Sweden Loves eSports & Betting

Fans of the various eSports tournaments and the incumbent personalities will know that Sweden has a rich history with eSports. Some of the early forerunners of the current competitive gaming scene originated from Sweden. Players like Oskar "Lakerman" Ljungström and Emil "Heaton" Christensen rose through the ranks of international players to dominate such games as Quake and Counter-Strike in the early 2000s.

There are plenty of present-day players following in their footsteps with Jonathan "Loda" Berg, Johan "Pieliedie" Åström and Zainab “zAAz” Turkie each dominating in their gaming niches.

For those not destined to personally know the thrill of conquering your nemesis online, there is another form of online entertainment that is very popular among Swedes – sports betting. While many forms of gambling were off-limits Svenska Spel, a state-run monopoly, offered sports betting which was a major source of revenue for the Swedish gambling sector.

✓eSports Betting At Risk

While the new gambling legislation, which came into play in January 2019, has opened up legal online gambling in Sweden it has also come with strict oversight from Spelinspektionen, Sweden’s gambling authority.

The concern with Spelinspektionen is the vague wording of key parts of the new gambling legislation and the “draconian measures” they’re accused of taking in order to enforce them. This lack of clarity was specifically cited by Robin Reed as the reason Stockholm-listed Gaming Innovation Group (GiG) removed sports betting from both Rizk and Guts in Sweden earlier this year.

The most recent area of contention is Chapter 8 of the Swedish Gambling Act which states that Swedes are not allowed to engage in betting on sporting events where most of the players are under the age of 18 years old.

As eSports continues its meteoric growth in terms of mainstream acceptance it will continue to gain ground as an incredible revenue generator, which will draw more and more attention from gamblers. However, the eSports scene is dominated by players who do not meet this baffling age requirement.

There is the contention that the bettor in this instance is of legal gambling age, and the bet placed has no impact on the player. As with any sporting event the wager is placed on the outcome of competitive skill-based interaction and has no bearing on the competitors age.

✓Bad Bark, Worse Bite

Despite this lack of clarity and in some cases legal contention Spelinspektionen continue to pursue punitive measures against sports betting providers they deem to be in contravention of their guidelines.

Their most recent round of fines and warnings amounted to more than €1.8 million:

• Faster Ltd was fined €850,000
• ComeOn Sweden was fined €500,000
• Hajper Ltd was fined €420,000
• Legolas Invest was fine €65,000

It is only a matter of time before Spelinspektionen move beyond soccer and other mainstream sporting events and apply their heavy-handed interpretation of Chapter 8 to your favourite eSports tournament.