The Swedish Government has introduced temporary restrictions for online gambling operators. New safety mechanisms were rolled out, increasing player protection during the COVID-19 pandemic.
Swedish COVID-19 Legislation
The current gaming laws in Sweden place all the power of gambling in the hands of a state-owned monopoly. Things are changing however, as the European Commission has put great pressure on Sweden to open the country the industry to competition from foreign operators. The Swedish Gambling Authority’s regulations and general advice on responsible gambling; adopted on 25 July 2018. The Swedish Gambling Authority prescribes. The following pursuant to Chapter 16, § 3, § 8, point 4, § 10, points 1-4, 7 and § 11, points 1-2 of the Gambling Ordinance (2018:1475) and hereby adopts the following general. The Swedish gambling market recently underwent some serious changes after many years of preparation and deliberation. The new laws were passed as a way to strengthen the gambling monopolies within the country, making it more difficult for both domestic and foreign entities from obtaining a licence within its regulated market. The new regulations In accordance with the law, all gambling activities in Sweden are divided into three broad categories: the competition sector, the government sector and the non-profit sector. All online gambling will be included in the contest area. The government sector will consist largely of state owned stationary casinos.
The measures were created to respond to concerns that players are more vulnerable to harmful online gambling, during the crisis. The regulations will come into force on 2 July and will remain in place for the rest of 2020. The rules will apply to all online casino games, including slots.
Players are limited to a weekly deposit of $500 and bonuses are capped at $10. In addition to this, players are required to set time limits on how long they intend to spend on casino sites.
Ardalan Shekarabi, the Swedish Social Security Minister said that the COVID-19 lockdown was creating a situation where consumers are at a higher risk. He said these dangers must be counteracted “quickly and decisively”.
The country’s Public Health Authority will also be conducting further studies to examine online gambling behavior during the pandemic. They aim to gain a deeper understanding of how problem gambling has been influenced by the outbreak.
Unsurprisingly, the new measures have not been popular with operators or regulators. The Swedish gambling regulator said offshore gambling could increase by 80%, making the local laws void. Operator signed a petition asking Shekarabi not to pass the measures. Signatories included LeoVegas, Betsson, Kindred Group and William Hill.
The regulator has also suspended several licenses for illegally targeting Swedish customers. Others found themselves in hot water for not meeting the industry’s high standards.
Online Gambling Rules in Spain
Meanwhile, in Spain, authorities announced that laws restricting online gambling advertising are to be lifted. Operators are now allowed to go back to pre-COVID-19 requirements. They will be able to exercise all advertising and marketing activities with no hourly limitations. Of course, they will have to abide by restrictions and guidelines provided for in the original law.
During the pandemic, measures were introduced to ban “marketing actions which explicitly or implicitly encouraged consumers to gamble as a result of the exceptional circumstances that arose from the Coronavirus pandemic.”
Fast Offshore
If you are looking for advice on opening an online gambling company, Fast Offshore can help. Those that want to offer services in Sweden, Spain and the rest of the EU should get advice on regulations and rules for operation. During the current crisis, changes can happen quickly. Fast Offshore advocates for responsible and legal gambling and is on hand to ensure the compliance of our clients. To find out more about incorporation, licensing, compliance, and other matters, contact us today.
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Sweden has a long history of gambling that dates to the time of the Vikings. At present, the Swedish Gambling Authority is responsible for the legitimacy, safety, and quality of the gambling industry in the country. Also, it can recommend amendments to Sweden gambling laws.
There are only four land-based casinos recognized by the Swedish gambling regulators. The central government created a monopoly to make it easier to protect consumers and stop illegal betting.
However, it is a different story for online gambling companies. Offshore sportsbook pay per head companies can offer their services in Sweden. Most online gambling sites are based in Gibraltar or Malta to get corporate tax benefits.
Sweden Gambling Laws for Online Private Operators
On January 1, 2019, lawmakers passed new Sweden gambling laws that opened the online gambling sector to private operators. As a result, pay per head companies can operate freely in the country.
At present, Swedes who want to play online casino have a wide range of choices. Private operators have a 29 percent share of the gambling market in the country. The government made changes to its gambling laws to generate more tax revenues.
The new gambling laws give the Swedish Gambling Authority the right to give out licenses to private operators. As a result, around 100 gambling companies are now operating in the country.
Sweden Gambling Laws 2020
The biggest winners of the new gambling laws are the Swedes. They now have the right to choose from different gambling websites. Also, gambling portals provide incentives and bonuses to attract players. As a result, Swedish players get the best deals.
Swedish Gambling Law
Also, Sweden benefits from the new legislation. It generates more gambling revenues for the state. Licensed online operators pay an income tax of 18 percent. However, the fee is only applicable on income made from Swedish players.