-
Casinos for you
Sweden Calls For An End to Unlicensed Casinos in 2023
By Shane Addinall Jan 01, 2023 LegalityA newly proposed Swedish gambling bill could see unlicensed casinos and illegal activities like match-fixing come to a crashing end in 2023!For many years the Swedish government took a live-and-let-live approach to unregulated online gambling. The country operated as a monopoly until 2019, when it bowed to pressure from the Europe Union and established what is arguably one of the most balanced and well-thought-out regulatory frameworks in the industry.
While the gambling jurisdiction set aside its monopoly in 2019, it had initially made online gambling legal in 2002. However, Swedes could only enjoy games of chance offered by the state-run entity, Svenska Spel. During the seven years between legalisation and the introduction of multi-license operators into Sweden, the unregulated casino industry blossomed.
Drawing a Line in the Sand
Since the Swedish government has no authority over offshore operators and they have also never taken legal action against a local player for gambling offshore, some gambling sites have chosen to remain unlicensed. They were intent on enjoying the benefits of the Swedish gambling market without paying the licensing fees.
The bill submitted to the Riksdag proposes to tackle two very specific gambling regulations in the country:
- To strengthen the work against unlicensed gambling activities
- To strengthen the work against match-fixing
The bill was sparked by what is now known in the region as the "Gunnar Larsson investigation". The Swedish Chamber of Commerce director general, Gunnar Larsson, headed up an investigation into match-fixing and unlicensed gambling sites.
The year-long investigation uncovered more than 700 AML infractions and multiple cases of crime syndicates benefiting from Sweden’s laissez-faire approach to managing this crucial aspect of its guidelines.
A Simple Plan of Attack
While the full proposal comprises a detail-heavy 89-page legal document, the main thrust of the initiative to block unlicensed online casinos and other illegal gambling activities boils down to 3 essential action items:
✓ Working with banking providers to block illegal gambling transactions
The bill proposes a redraft of the current legislation around what information banking providers must supply in connection with deposits and withdrawals. This revision will allow banks and the Authority to agree on which types of transactions to block to hit illegal gambling sites where it hurts most - their wallets.
✓ A closer working relationship between operators and Swedish police
In addressing illegal gambling activities within its borders and beyond, the Swedish Gambling Authority (SGA) aims to broaden the working relationship between the Police Authority and all licensed gambling companies. The hope is that it will assist them in uncovering and ending criminal activities looking to abuse the country’s gambling infrastructure in an expedient manner.
✓ Increased hands-on management by the Swedish Gaming Authority
As proof of its commitment to ending illicit gambling activities, the SGA proposed developing a testing framework whereby it would operate "secret shopper" player accounts. These test accounts would ensure adherence to banking, promotional and communication guidelines. In cases where operators and even the banking institutions are not following the SGA's policies, these accounts would be used as proof in support of further legal action.
The End is Near
While the former Minister of State Ardalan Shekarabi launched the original investigation, it is now in the very competent hands of minister Niklas Wykman. Wykman submitted the bill to the Riksdag for review late in December 2022, and it is expected to be written into force by 1 July 2023.
Should the Swedish government agree with the proposal, this new bill will be a landmark decision in Sweden’s gambling history. One which will hopefully result in greater player safety and a more stable and secure marketplace for licensed operators.
The broader implication is that it could also result in other European gambling regulators reviewing their stance on black market gambling sites. Should they choose to follow suit, this new bill could have an unforeseen knock-on effect on unlicensed gambling worldwide.
You might also like