Sweden's Gambling Act: Where the Loopholes Lie

The loopholes in Sweden's Gambling Act have come under scrutiny as industry experts have pointed out legal gaps that allow unlicensed gambling operators to continue targeting Swedish consumers.

BOS Urges Government Action

The Swedish Online Gambling Trade Association (BOS) has urged the government to strengthen regulations in order to combat the increasing presence of black-market gambling.

Licensing Requirements Under the Gambling Act

According to Chapter 3, Section 3 of the Gambling Act (2018:1138), all gambling operators offering services in Sweden must obtain a valid license. This requirement applies to both domestic and international operators if they allow Swedish residents to participate.

The Language and Currency Loophole

Despite this, online gambling sites that do not specifically cater to Swedish players, meaning they do not use Swedish language, customer service, or transactions in SEK, fall outside the scope of regulation as clarified in Inquiry 2017/18:220. This loophole allows offshore operators to offer gambling services to Swedish consumers without adhering to national laws.

Inadequacies in the Current Framework

BOS has raised concerns that the current legal framework is inadequate in preventing unlicensed gambling websites from reaching Swedish players. The determining factor for whether a site falls under Swedish jurisdiction is whether it explicitly targets the Swedish market through language or currency use. This means that gambling platforms operating in English and accepting payments in euros can circumvent Swedish regulations.

Payment Blocking and Criminal Liability

Furthermore, Chapters 18 and 19 of the Gambling Act, which address payment blocking and criminal liability, are deemed ineffective. Authorities can only enforce payment blocks if a gambling operator is proven to be directly targeting Sweden, leaving room for unlicensed platforms to process payments legally.

Call for Legal Amendments

BOS has called on the Swedish Ministry of Finance to amend the law and criminalize all unlicensed gambling directed at Swedish consumers.