Sweden in a pinch – Oversight in Online Gaming Regulation

In Sweden, the updated gaming law empowers the national gambling authority, Spelinspektionen, with new capabilities and duties. One of the notable enhancements to its regulatory arsenal involves conducting undercover purchases on online gaming sites operating without a Swedish license.

Titled “Measures to Ensure a Healthy and Safe Gambling Market,” the pivotal intent of the legislation is to enhance the crackdown on illegal online gambling and betting fraud. This movement reflects the government’s commitment to curbing unsanctioned gambling activities and is set to be implemented starting July 1, 2023, as indicated on the ministry’s website.

Undercover operations against gambling

Historically, the prospect of undercover operations in online casinos sparked debates due to privacy concerns. For instance, the use of fictitious personal identification numbers was off the table, raising questions about the feasibility of maintaining buyer anonymity. Concerns were also raised by Spelinspektionen about the willingness of employees to share their personal details with unlicensed online gambling operators.

The Ministry of Finance stands by undercover purchases as an effective tool to shed light on the activities of foreign websites accepting Swedish players and the collaboration between payment service providers and online casinos.

With the new legislation, the approach towards unlicensed providers and their financial partnerships is poised to become more stringent. Spelinspektionen will now have the authority to directly enforce payment blocks and impose penalties on payment service providers that breach regulations. Previously, the agency was required to seek rulings from administrative courts to initiate payment blocks.

Database on Match Fixing

The gambling authority is tasked with the creation and maintenance of a comprehensive database dedicated to tracking potential match-fixing incidents. This proactive tool serves the purpose of processing and analyzing data regarding suspicious cases.

Additionally, a fresh information-sharing platform has been established to facilitate the exchange of insights among license holders. Access is granted to licensees for the purpose of conducting independent assessments. Furthermore, operators are obligated to report any suspicious activities, ensuring transparency and diligence in combating fraudulent activities in sports betting.

This is important to saveguard not only the traditional sports from being infiltrated by match-fixers, but is very important for the Esports-branch too. The more bad-actors we can grab and lock up, the better!

Proposed Partial Privatization of Svenska Spel

Sweden’s opposition liberal party, the Moderates, have announced plans that, should they triumph in the autumn elections, would result in splitting the state-owned gambling company Svenska Spel into two separate entities.

• Lotto and Keno: These sectors would remain under state monopoly.
• Casino and Sports Betting: These branches are slated for privatization, allowing them to compete as equals with other market players.

The Swedish Online Gambling Association (BOS) has voiced approval of this initiative. Gustaf Hoffstedt, the Secretary-General, stated that the organization appreciates the opposition parties’ pledge to privatize the competitive sections of Svenska Spel if they form or support the new government post-election.

Is Sweden going to privatize its iGaming-Sector?

Further insights from the party detail that the state should have a regulatory and supervisory role in the gambling market, rather than being a direct participant and thus profiting from gambling activities.

Another key aspect of their platform addresses the current restrictions around bonus offers by licensed gambling entities. As it stands, operators are allowed to extend only a single bonus to each new customer, barring any recurring promotions or loyalty programs. This proposal intends to remove such limitations, fostering a more competitive and liberal gambling environment. This is all nice PR-speech for a power-grab by the Gambling-Sites. The less regulated the market will be, the better and easier it will be to acquire new customers and also cash in on the huge profits in the gambling market.