The Government of Sweden has decided to review its policy on gaming by adopting a bill on the legal regulation of gaming, the entry into force of which is planned for January 1, 2019.
The bill was supported by over 90% of the present members of Swedish Parliament. The only political force that voted against was the Left Party (ex-Communists). Nevertheless, it did not affect the final result.
The result of the adoption of this bill was the transition of Sweden to a regulated market of gaming both online and offline. The new rules provide for changes in tax rates, increased requirements for operators and introduction of a licensing system in the country.
The history of the development of gaming business in Sweden is very interesting. The control over gaming has been carried out and is carried out by the only state company Svenska Spel. The state owns all the rights to open and regulate the gaming business, private companies in Sweden are forbidden to make gaming business. The company Svenska Spel regulates the market of lotteries, poker, bingo, as well as the market of land casinos, which belong to its subsidiary company Casino Cosmopol AB. Initially, it was planned to open six casinos in Sweden. However, after a thorough study of the market, only four were opened. According to the government, it was enough to saturate the market with the gaming industry.
Three casinos are located in the largest cities in Sweden: Stockholm, Gothenburg, Malmö and Sundsvall. The first casino in Sundsvall was opened on June 30, 2001. In December 2001, a casino was launched in Malmö, in 2002 – in Gothenburg and in 2003 – casino in Stockholm.
As statistics show, the average annual turnover of the gaming market in Sweden is about 5 billion euros. The annual increase in turnover is within 6 per cent.
The main feature of the new bill was the willing of the Swedish government to establish stringent requirements for operators of the online gaming industry. Now, those people who are willing to obtain a license, the accommodation in Sweden or a country approved by the Swedish government is required. This implies, apparently, the location of servers in the EU countries. In addition, operators need to place their representative office in the country.
Another important requirement has become the strengthening of control over the players. Operators will need to request a wide range of identity documents to confirm the age and place of residence in Sweden.
The Swedish gaming regulator “Lotteriinspektionen” has already announced its readiness to accept applications for licensing. The validity of such a license is 5 years, and it is proposed to introduce a profit tax of 18% for operators of the online gaming industry. It is planned to introduce a fine of up to 10% of the operator’s annual income for illegal performance of services.
It is still unknown how the regulation will be implemented, whether the Swedish market will go to the reservation or remain in the common pool. The Swedish authorities plan to give additional comment on the new law after consideration by the European Commission.
Swedish law allows the organization and conduct of gaming on the Internet. At the same time, the laws of the country are the safest and most reliable among many European states. Initially, they correspond to the needs of business, society and the state.
For example, players from Sweden who prefer online gaming are maximally protected. Registration in an online casino takes place in several stages. The client is required to provide: personal data, bank account number and registration address. Thus, the gaming institution checks the available limit of money that a player can spend within a week, and only after this procedure it will allow to participate in gaming or refuse to register.
It should be noted that according to the legislation of the European Union, which includes Sweden, citizens of the country have the right to play in an online casino. In this case, gaming Internet institutions that operate outside the state have the right to provide services in Sweden.