All about gambling in Sweden

Introduction

The Swedish Gambling Act provides regulation for all gambling referring to the creation of a monetary prize and other prizes with a monetary value. Gambling is defined with the sub-categories 'lotteries, betting, combination gambling and pyramid schemes', which are defined as follows: For those interested in updates and news about the gambling industry, spelindustrin nyheter provides the latest developments and trends in Sweden.

i. Definitions

• Lotteries: activities wherein the participant has a chance of winning a prize and the likelihood of winning depends entirely on chance. Pool betting is included in this definition.
• Betting: activities wherein the participant has a chance to win a prize by placing a wager on the outcome of a future event or that a particular event will or will not occur in the future, including fantasy leagues and spread betting. Spread betting is, however, prohibited under the GA. Betting on the outcome of a lottery is only permitted with the consent of the holder of the licence for the lottery.
• Combination games: gambling where the participant has a chance of winning a prize and the likelihood of winning depends on a combination of skill and chance.
• Pyramid schemes: gambling where the winnings derive mainly from the bets of future participants and where the likelihood of winning depends on the number of participants who subsequently join. Pyramid schemes are prohibited under the GA.

The definition of gambling and the scope of the GA do not cover skill competitions and wagering for prizes. Free draws and games where no bet must be placed, as well as betting on future prices for financial activities, are, however, explicitly excluded from the scope of the GA, and hence, do not require a license.

ii. Gambling policy

Providing gambling in Sweden is allowed under certain conditions: an operator needs to obtain a license and observe all the laws and regulations. Only before the advent of the GA in 2019 had gambling been allowed on the Swedish gambling market which, in principle, has belonged only to government-owned companies or public-benefit associations.

With the GA being adopted, a huge segment of the Swedish gambling market was opened to commercial operators as well. Under the licensing regime, the offering of any type of gambling shall require a license, except in certain cases. Offering unauthorized gambling has remained, and remains today, under the new GA and the licensing framework, an offence regardless of culpability (see Section III.ii).

The Swedish gambling policy takes the view of ensuring that gambling activities are conducted in a safe and sound manner, under public control, by channelling all gambling to proper and reputable operators who are auditable and controllable. In the general policy aim to minimise risk of social damage from gambling, consumer protection is given emphasis; for example, this is found in the possibility for players to self-suspend from all (regulated) gambling and the prohibition for operators to extend credit to players. It includes obligations on all operators to see to it, above all, by continuously monitoring gambling behaviour, of combating excessive gambling in a pragmatic manner.

iii. State control and private enterprise

There are several types of licences even under the new licensing regime that are still reserved for state-owned companies, such as for land-based casinos and for token gambling machines that are not on board vessels in international commercial traffic. AB Svenska Spel is the Government-owned corporation in charge of all token gambling machines in Sweden, while Casino Cosmopoluls is a wholly owned subsidiary also of AB Svenska Spel and operates the only remaining land-based casino in the country (located in the blueprint), which is competitive in the commercial framework. AB Svenska Spel also holds the licence for the state lottery.

iv. Territorial issues

Gambling is regulated and licensed by the national government, with no locality enjoying any special status for gambling.

v. Offshore gambling

The GA does apply to all gambling activities offered in Sweden, including online gambling targeted at the Swedish market. Foreign operators determined to be offering online gambling directed at the Swedish market should, therefore, obtain all the required licenses to adequately meet the regulations of Swedish gambling.

To determine whether an operator directs its online gambling at the Swedish market, the Swedish Gambling Authority (SGA) normally looks into the circumstances as a whole. There are generally following circumstances mentioned by SGA that can be considered indicatives:

• The website offers deposits or withdrawals, or shows winnings, in Swedish krona;
• The domain '.se' is used;
• The website, or an affiliate, uses a payment alternative or payment service provider registered in Sweden or mainly used by Swedish consumers;
• The website, or an affiliate, uses an e-identification system used mainly by Swedish consumers;
• The website has information in Swedish;
• The operator offers terms and conditions in Swedish or otherwise refers to Swedish customers;
• The operator has a Swedish customer service/FAQ or otherwise refers to what applies to Swedish customers;
• The operator has contact information for customer service with a Swedish phone number; and
• The operator, or its affiliates, directs its advertisement towards Swedish consumers.

On several occasions, the SGA has used its powers to issue prohibitory injunctions against unauthorised operators. This means that the SGA can further instruct an internet service provider to place a warning message on the page of a particular operator addressing visitors about the fact that the operator lacks a licence and is therefore unregulated by the authority itself. The SGA cannot, however, instruct payment service providers to refuse payments associated with unlawful gambling. Still, payment service providers are obliged to deny payment orders with MCC 7995, which is a merchant category for betting and other similar services, unless such an order is for a licensed operator. Payment service providers will always be informed by the SGA of all operators licensed.

A licensee not having residence or an establishment in any country within the EEA should appoint a physical representative in Sweden residing in the country.