Issued in June 2018, the law that regulates online gaming in Sweden is intended to regulate the gambling market while strengthening the protection of players. The enactment of the law also eliminated the national gambling monopoly and divided the gambling market into three sectors: a competitive sector for online gaming and betting, a sector for public purposes and a third sector reserved for the Swedish State.
The Gambling Act was followed by a Gambling Ordinance, which provided further clarity to the provisions of the Act.
The new legislation – which applies to all games provided in Sweden, including online games targeting the Swedish market – was groundbreaking as for the first time, it sought to regulate online gambling in the country. It also brought clarity to the Swedish online gaming sector and the requirements for operators to obtain a licence.
The first licences were issued in January, 2019 and since then, various companies have obtained the necessary licences to operate in the industry.
The Act specifies which games can be offered under the Swedish Gambling Act, which specifies that roulette, baccarat, punto banco, blackjack, poker and dice games can be offered under a commercial online gambling licence. Most forms of betting are allowed except betting on animals pitted against each other and some other types such as spread betting. The Act does not apply to parlour, computer and amusement games – games which depend on a player’s skills also fall outside the scope of the Act.
Anyone providing gambling services in Sweden is required to do so under a licence – while non-licensed operators are prosecuted.
To apply for a licence, operators need to apply with Spellinspektionen, which is the Swedish Gambling Authority. Potential operators need to abide by certain regulations, including the provision of a certificate of incorporation, articles of association and a power of attorney for a representative. A licence is valid for five years and a gambling tax of 18 per cent has to be paid on the proceeds, which are the difference between stakes and payouts – no tax is paid on the winnings by the players of licensed operators. A corporate tax is also applicable – starting at 22 per cent but decreasing gradually to 20.6 per cent by 2021.
For more information visit casinoutanspelpaus.io.
Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.gamcare.org.uk.