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Swedish Government Introduces Bill with New Gambling Laws
By Shane Addinall May 26, 2022 IndustrySince the re-regulation of its gambling industry in 2019, Sweden’s government has taken a work-in-progress approach by continuously amending laws. The newest appendix to the Gambling Act will come into effect in 2023.Focusing continuously on gambling regulation, the Swedish government proposes further player safety measures for the country’s licensed platforms. Spelinspektionen reports on the bill from lawmakers, which addresses consumer protection, long-term sustainable approaches, and a hard-hitting stance toward illegal operators.
Sweden’s Ministry of Finance hopes the measures will strengthen regulation in the gambling industry and allow for the eradication of offshore providers. The proposition comes after the Swedish Trade Association for Online Gambling (BOS) warned that overly strict regulations drive players away from regulated gambling.
Although regular amendments in the country’s regulatory regime cause uncertainty, the country experienced continued revenue growth in the online sector.
Changes for Increased Consumer Protection
Proposal 2021/22: 242 reached Riksdag (parliament) on 17 May 2022. Among other things, the bill addresses gambling advertisements, software licences, and affiliate marketing of unlicensed operators.
The proposal primarily affects online gambling, but the government also motioned to terminate slot machines on passenger ships, which led to the termination of an agreement between Sweden and Finland.
Ardalan Shekarabi Minister of Social Insurance, says:
“We are now taking the next step to regain control of the Swedish gaming market. It is both about limiting aggressive gaming advertising and stopping gaming companies that do not have a licence. Strengthened gambling regulation is a prerequisite for strong protection for consumers.”
Most proposed amendments come into force on 1 January 2023, following approval from all the relevant authorities.
Regulatory Amendments and Additions
If approved by Riksdag, software providers who supply casino and betting platforms with games of chance will require a Swedish licence. The intention is to regain control of the market following the entry of private gambling companies and stamp out illegal games. Software companies will have until June 2023 to obtain a provider licence.
The Ministry motions for the extension of the existing ban on any form of marketing linked to unlicensed operators, which includes games from unlicensed software providers, once the law comes into effect. This prohibition covers affiliate marketing and direct marketing across all media sources.
Licensed platforms face adjusted moderation requirements for their advertising. The government insists on advertising restrictions to better protect children, young adults, and those most at risk of gambling harm. Restrictions apply to the most addictive forms of gambling, and certain marketing tools, like direct emails, have extra guidelines.
The ministry motions for increased authority to intervene when operators violate regulations and propose a market disruption fee for anyone who oversteps the advertising guidelines.
Furthermore, the bill proposes the obligatory release of specific information from operators, as the government aims to use this in the continuous development and improvement of the gambling industry.
Online Gambling Outperforming Retail Outlets
Spelinspektionen, the Gaming Inspectorate, released industry results on 17 May, which show revenue increase for online verticals but a notable decline in land-based gambling activities. Except for Q3 in 2021, Swedish igaming continued to grow steadily, and 2022 Q1 ended at SEK 6.5 billion in net sales. This amounts to a 6% growth rate compared to the same period in 2021.
Players registered and blocked from gambling services through Spelpaus.se increased by 6% as well. The gambling exclusion initiative recorded 73,000 people actively suspended at the end of Q1.
BOS insists that if the government does not ease restrictions to make the regulated market more attractive, the country will lose SEK 21 billion in the next few years.
The trade association also believes that a 10% increase in channelisation presents Sweden with advantages of job creation, additional turnover of SEK 1.1 billion from licensed operators, and SEK 59 million in extra tax contributions.
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