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Lawmakers Propose Regulatory Amendments for Sweden’s iGaming
By Shane Addinall Feb 06, 2022 IndustrySwedes breathed a sigh of relief as their government announced that they reconsidered temporary restrictions on gambling. While they scrapped the proposed limits, Sweden’s igaming industry faces new regulations.The Swedish government made some bitter-sweet announcements this past week. They announced that they would not reinstate temporary deposit caps and pandemic-driven gambling restrictions. However, new regulations will come into effect on 1 January 2023. Sweden’s Ministry of Finance proposed alterations to the safer gambling legislation, which affects licensing processes and advertising.
The Swedish Trade Association for Online Gambling (BOS) expressed their disagreement with the government’s call to reinstate restrictions. Upon the announcement of their choice to abandon the plan, Gustaf Hoffstedt of BOS met with State Secretary Alejandro Firpo to thank them. The new regulations could shut down unlicensed wagering, according to the Ministry.
News of the regulatory adjustments come weeks after the region’s state-owned Svenska Spel imposed risk and income-based caps on their players.
New Rules
Minister Ardalan Shekarabi released the proposal at a press conference held on 26 January and set the effective date for less than a year from then. Part of the new set of rules will be a mandatory licence for gaming software providers. The ministry believes this will prevent unlicensed gambling. Any igaming developer who hopes to supply content to Swedish platforms must obtain a licence to do so.
The proposition also suggests the prohibition of the promotion of illegal gambling and the current ban on unlicensed wagering needs to be extended. It addresses the way igaming platforms advertise and specifically focuses on younger citizens and at-risk players. Gustaf Hoffstedt commented that BOS opposes further limits on gambling marketing.
A statement from BOS explained that for online gambling to be successful in eradicating illegal gambling, its advertising should be far-reaching. They strongly oppose any further restrictions imposed on igaming specifically.
Less than a year ago, in July 2021, Spelinspektionen backed the Ministry of Finance’s proposition that gambling advertising requires special moderation. The change would see gambling ads treated the same as alcohol marketing. BOS said that clarity is required on whether the new rules involve special moderation or other limitations.
Furthermore, the Ministry’s proposition addresses a market disruption fine. This would apply to operators who make use of direct marketing like emails, and if their methods are seen as disruptive, they would receive a fine.
Good Intentions
The new regulations include obligatory information disclosure from Swedish online gambling licence holders. Information from the platforms will allow the Ministry to monitor trends and witness developments within the igaming market. This proposition has BOS cautiously optimistic according to Hoffstedt.
Ardalan Shekarabi explained that the proposed amendments coincide with government initiatives to clamp down on unlicensed gambling. It will also limit irresponsible and excessive advertising from licensed operators. Shekarabi commented:
“We are now taking the next step to regain control of the Swedish gaming market. Strengthened gambling regulation is a prerequisite for strong protection of consumers.”
All proposals come from the government’s intention of creating a safe and responsible regulated market for Swedish players. BOS asserted that reforms can be expected if strong regulation is the goal and they are in favour of such changes if these are reasonable and objective.
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