The Swedish Gambling Authority (Spelinspektionen) has formally endorsed FI2024/00442, a government measure that seeks to prohibit the use of credit cards for gambling. This proposed ban has been under discussion for several months and has now garnered the regulator’s official support.

Camilla Rosenberg, director general of Spelinspektionen, stated that the authority believes the ban on gambling with credit should apply universally across all gambling forms. Additionally, the authority suggested the need for the ability to grant exceptions in certain cases.

In its official statement, Spelinspektionen affirmed its support for the proposal. However, the Swedish trade association BOS criticized the measure, arguing that it could severely impact the legal gambling marke. Despite this opposition, the regulator acknowledged that there is no conclusive evidence on how the measure would affect operators who sell tickets digitally.

One concern raised was the ambiguity regarding how the ban would impact players using account credits for wagers. Given that credits linked to a bank account are also considered account credits, Spelinspektionen noted that this could imply licensees must ensure that credit limits are not utilized for payments made with debit cards.

However, the original proposal does not mandate licensees to investigate such matters. Therefore, Spelinspektionen concluded that it does not interpret the current wording as requiring gambling companies to verify whether users’ debit cards have a credit limit.

Implementing a ban on credit card gambling would place Sweden in line with other modern regulated markets such as Australia, Ireland, Norway, and the United Kingdom.

Spelinspektionen concluded that the proposal outlined in the memorandum is consistent with the regulator’s recommendations.

The Regulator Continues Market Oversight

In other developments, Spelinspektionen recently banned another skins gambling website. The company, WiseAvant OÜ, was found to be providing games of chance to Swedish customers without the necessary license.

This action follows a series of crackdowns by the authority on unlicensed operators. A few months ago, Spelinspektionen took similar actions against three companies: Galaktika NV, Newera Frozen PTE Limited, and Aprodi Ltd, two of which also offered skins gambling.

In related news, ATG’s chief executive officer, Hans Lord Skarplöth, recently suggested that the government might reconsider its proposed Gross Gaming Revenue (GGR) tax hike. The proposed tax increase has been controversial, with BOS warning that it could benefit the black market if implemented.

Source: “Spelinspektionen Approves Ban on Credit Cards in Gambling”. Gambling News. May 22, 2024.

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The latest company to have been handed down a fine is Casino Cosmopol which admitted fault and agreed to pay SEK2 million, or $200,000, to the regulator. This penalty is awarded in relation to anti-money laundering (AML) breaches outlined in the watchdog’s conclusion of the case and the two-year investigation.

Cited Breaches Are a Matter of the Past

Spelinspektionen says that certain elements of Casino Cosmopol’s AML processes were insufficient, and the operator had “failed” customer knowledge.  The regulator specifically looked into AML practices, citing previous concerns about compliance with the Money Laundering Act.

Casino Cosmopol, although acquiescing to the latest enforcement action, said that the issues described by the regulator were now an issue of the past and not something that Casino Cosmopol had overlooked to rectify.

The regulator has reflected on the positive changes that the operator had enacted as a result of the intervention and said that it expects Casino Cosmopol to indeed comply with all regulatory criteria moving forward.

Among those are improved money laundering training for staff which should help ensure that team members are fully prepared to meet the highest regulatory standards in the country. Apart from training, the operator uses different tools that help detect and flag suspicious transactions, enabling the company to respond in a timely and firm manner.

Gambling Regulator Is Tough on Financial Crime

Spelinspektionen has been calling for stricter measures when it comes to financial crime in the gambling industry and recently applauded a proposal pitched by the government and designed to, among other things, address AML deficiencies. Interestingly, though, the regulator does not believe that a credit card ban is needed in the country right now.

The proposal, however, also wants to increase the tax collected from gambling businesses to 22% from the current 18%, which has ruffled industry feathers and issued a response from BOS, a trade group that protects the industry’s interests and liaises with the government on various matters, including player protection and regulatory course-correction.

The Swedish Gambling Authority has not spared any effort in going after companies that it thinks are also coloring around regulatory lines. Recently, the watchdog named Videoslots as one of the operators to have breached the country’s CFT and AML mandates and rules.

The amount of the penalty was considerably larger at the time, with the company handed down a $810,000 fine.

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Sweden’s gambling regulator, the Spelinspektionen, has published a consultation response relating to SOU 2023:38, saying that gambling companies should not encourage their players to loan money. However, the regulator is not convinced that further measures are needed at this moment.

SOU 2023:38 is a series of proposed measures that concern the extension of the credit ban in the Gambling Act. Under Swedish law, licensed operators and gambling agents in Sweden are prohibited from promoting loans to their players as a way for them to continue playing. Sweden, however, is exploring opportunities for extending the measure and prohibiting the use of credit cards in online gambling.

The authority noted that the current laws already prohibit licensees from promoting credits to their players. Still, the Spelinspektionen agreed that the prohibition should be communicated more clearly.

However, the authority noted that, since the current law already prohibits licensees from promoting credits to players, an extension of the measure seems unnecessary. Despite that, the regulator plans to continue investigating the efficiency of the credit card bans in Norway and the United Kingdom.

For reference, around 60% of the 50 licensed operators in Sweden offer accept credit cards as a payment option.

The Spelinspektionen also commented on the proposed introduction of a system for debt and credit registers (Skri register) that would provide additional insights into the matter.

Other News about the Swedish Market

In other news, the Spelinspektionen just handed a huge fine to Videoslots, claiming that the operator has violated Sweden’s AML and CTF rules. The failings caused the regulator to issue a penalty fee of $809,300 because of the seriousness of the operator’s violations.

For reference, the gambling authority has been investigating Videoslots’ business since 2021 to confirm whether the company secured sufficient knowledge of its customers. Unfortunately, the Spelinspektionen learned that the gambling company’s efforts were lacking and that its negligence may have facilitated money laundering and terrorism financing.

Several days ago, the Spelinspektionen published a report on the ongoing review of how collaboration with the Finansinspektionen (Financial Supervisory Authority) can strengthen the efforts against illegal gambling.

This came after an earlier measure proposed allocating SEK 10.8 million (around $970,000) to the Spelinspektionen’s 2024 budget and another SEK 4.5 million ($400,000) to the Finansinspektionen in 2024, helping the two regulators crack down on unlicensed gambling.

The two authorities are currently exploring opportunities for blocking payments to and from offshore companies.

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Sweden’s gambling regulator, the Spelinspektionen, has issued a penalty fee to Videoslots. According to the authority, the gambling operator failed to properly measure risk and committed anti-money laundering (AML) and counter-terrorist financing (CTF) violations.

For reference, Videoslots is a licensed operator that offers gambling in Sweden through its videoslots.com website.

As noted by the Spelinspektionen, the authority began supervising the operator’s AML protocols back in 2021 as it wanted to confirm whether the company secured sufficient knowledge of its customers. However, the review uncovered failings, confirming the regulators’ suspicions that Videoslots doesn’t properly assess its customers’ risk profiles.

The violations committed by Videoslots are considered to be very serious, the Spelinspektionen noted. According to the regulator, Videoslots has now received a warning and a penalty fee of SEK 9 million (approximately $809,300) for its breaches, which may have facilitated money laundering and terrorism financing.

This is one of the bigger fines handed by the Spelinspektionen, which noted that the maximum possible fine, as outlined in the Money Laundering Act, is EUR 1 million (approximately $1.06 million).

Sweden Is Stepping Up Its Efforts to Combat Illegal Gambling

In other news, the Spelinspektionen just published a partial report on the ongoing review of how collaboration with the Finansinspektionen (Financial Supervisory Authority) can strengthen the efforts against illegal gambling. The two regulatory bodies are currently evaluating how their efforts can benefit Sweden’s online gambling market.

As a result, the Spelinspektionen and the Finansinspektionen are exploring synergies and opportunities for payment blocking. The two regulators are also exploring opportunities for data sharing that will enhance their efforts.

An earlier proposal suggested allocating more money to the two authorities, helping them in their respective tasks. The proposal sought to allocate SEK 10.8 million (around $970,000) to the Spelinspektionen’s 2024 budget and SEK 4.5 million ($400,000) to the Finansinspektionen in 2024.

Over a month ago, Sweden proposed changes to its Money Laundering Act. Back then, the Spelinspektionen expressed its approval for most of the proposed changes but highlighted a few things that could be better.  The Swedish Trade Association for Online Gambling (BOS) also addressed the changes and similarly agreed with most of them but outlined a number of things to keep in mind.

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Sweden’s gambling regulator, the Spelinspektionen, has responded positively to recently proposed changes to the Money Laundering Act that would adjust penalty fees for AML violations. However, the authority proposed a different approach for fines that are less serious and unsystematic.

Under the proposed adjustments, the Spelinspektionen must adjust penalty fines for operators that violate the country’s anti-money laundering rules. Starting April 1, 2024, the Spelinspektionen must specify a maximum fine size for violations of the AML laws, in line with the rules outlined in the Gambling Act.

Under these rules, the Spelinspektionen can revoke the license of a regulator that has committed serious, repeated or systematic violations. In the meantime, the Spelinspektionen is limited to issuing a correction order for violations that are not serious, repeated or systematic.

The Spelinspektionen is fairly positive about the changes but noted that the issuing of a correction order might not be an appropriate intervention for certain offenses. As a result, the authority may lack the relevant opportunity to intervene in certain cases.

The Spelinspektionen also noted that since violations of the Money Laundering Act have several alternative ways to calculate the maximum possible penalty, they should be regulated in a separate provision.

In the meantime, the Spelinspektionen welcomed the introduction of a written requirement for telephone sales of gaming services as this would help to protect consumers from harm.

In other news, the Swedish government recently proposed the allocation of more money to the Spelinspektionen and Finansinspektionen. Seeking to encourage a collaborative effort between the two regulators in the war on unlicensed gambling, the government allocated more budget to both entities.

Under the proposal, the Spelinspektionen would receive SEK 10.8 million (around $970,000) in 2024, SEK 15.6 million ($1.4 million) in 2025 and SEK 18.5 million ($1.66 million) in 2026. The Finansinspektionen, on the other hand, would receive SEK 4.5 million ($400,000) in 2024.

Earlier this month, the regulator also published information about the Swedish gambling market’s performance in the second quarter of the year, reporting that the authority’s licensees collectively recorded a turnover of SEK 6.7 billion (around $602,000) during the period.

Last month, the Swedish National Audit Office decided to probe into the Spelinspektionen’s work, evaluating the regulator’s actions, strategies, and overall effectiveness.

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Sweden’s government has proposed an increase in the money allocated to the Spelinspektionen and Finansinspektionen for 2024. As the country seeks to strengthen the supervision of the gambling market, it proposed to allocate SEK 10.8 million (around $970,000) to the gambling authority’s 2024 budget.

The government plans to further support the Spelinspektionen, providing it with SEK 15.6 million ($1.4 million) in 2025 and SEK 18.5 million ($1.66 million) in 2026. Under the proposal, the Finansinspektionen, on the other hand, will receive SEK 4.5 million ($400,000) in 2024.

The efficiency of Sweden’s action against harm will also depend on the Spelinspektionen’s cooperation with the Finansinspektionen, the government noted.

The Spelinspektionen and Finansinspektionen Should Cooperate

Sweden believes that gambling-related fraud, such as illegal offerings and the manipulation of professional sports games is something that benefits criminal networks. In addition, players in the black market are exposed to high risks of falling victim to fraud or developing problem gambling behavior.

Acknowledging these problems, Sweden seeks to crack down on fraud, banning illegal operators from the country and counteracting match-fixing.  Sweden hopes that its crackdown on fraud will help it meet the requirements of the Macolin Convention.

According to the Swedish government, the money allocated to the Spelinspektionen will help it improve its supervisory capabilities. The cooperation with the Finansinspektionen, on the other hand, will create new opportunities, allowing the gambling regulator to block payments to and from illegal gambling companies, Financial Markets Minister Niklas Wykman said.

The extra money allocated to the Finansinspektionen will incentivize cooperation between the two regulators, allowing them to join forces and block payments related to illegal gambling.

Sweden’s Sports Minister, Jakob Forssmed, also commented on the matter, addressing the threat of match-fixing to professional sporting events. Forssmed believes that the extra money will help the Spelinspektionen shield Swedish sports from illicit activities and match manipulation.

In the meantime, the Swedish Trade Association for Online Gambling (BOS) just addressed the recently proposed changes to the Money Laundering Act. The body expressed approval of the proposal to increase fees for AML violations but listed a few things that the government should take in mind, should it implement these new measures.

The BOS praised the Ministry of Finance’s decision to base fees on gambling companies’ gross gaming revenues, saying that this will introduce a much-needed proportionality to how AML violations are handled.

Earlier this month, the Spelinspektionen published information about Swedish gambling companies’ performance in the second quarter of the year.

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The Spelinspektionen, Sweden’s gambling regulator, has published information about the Swedish gambling market’s performance in the second quarter of the year. The period saw the authority’s licensees collectively record a turnover of SEK 6.7 billion (around $602,000), which translates to a slight year-on-year decrease.

The reported preliminary figure represents a decrease of a little bit over 1% compared to Q2 2022. The Swedish market continues to be fairly stable, as attested by the overall trends.

The Spelinspektionen also published results about the individual performance of various gambling verticals. Commercial online gambling and sports betting, for example, was the primary contributor to the total turnover. The vertical earned almost SEK 4.2 million ($377,500) in Q3 2023. This number is nearly identical to the one recorded in Q1 2023 and slightly lower than the one recorded in Q2 2022.

The state lottery and slot games collectively earned SEK 1.4 million ($125,800). The figure represents a slight quarter-on-quarter increase and a small year-on-year decrease. The net turnover of Casino Cosmopol, meanwhile, was around SEK 126,000 ($11,300).

Games for general purposes and national lotteries, on the other hand, brought in SEK 896,000 ($80,500). Community games and hall bingo, meanwhile, recorded a turnover of SEK 48,000 ($4,300). Finally, land-based commercial gaming earned SEK 51,000 ($4,583).

The Spelinspektionen concluded that by the end of the second quarter of the year, around 95,000 people were excluded from gambling via Sweden’s exclusion program, Spelpaus.se. This number represents a 1.4% year-on-year increase, the regulator pointed out.

Spelinspektionen’s Work Came Under Review

Two weeks ago, the Swedish National Audit Office announced its intention to launch a probe into Spelinspektionen, evaluating the regulator’s work, actions, strategies and effectiveness in achieving the objectives set by the Swedish national gambling policy.

One of the main concerns in Sweden continues to be the low channelization rates. Experts say that only 77% of the gamblers in the country play with licensed operators. This means that almost a quarter of the Swedes prefer offshore companies, despite the numerous risks associated with the black market.

By probing the Spelinspektionen’s work, the Swedish National Audit Office hopes to find valuable insights and devise plans to make a change.

In other Sweden-related news, Svenska Spel, Sweden’s state-owned online casino operator, recently donated $377,000 to five studies researching gambling harm. The move reaffirmed the operator’s desire to mitigate harm and promote responsible gambling. 

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Spelinspektionen, the Swedish Gambling Authority, tasked with the regulation of gambling activities in the country, revealed on Tuesday that it extended the term of its current director general. The regulator confirmed that Camilla Rosenberg, who currently serves as director general, will remain in her role until October 31, 2026.

Rosenberg joined the Swedish Gambling Authority in 2017. Back then, she was appointed to the role of director general of the entity which held the name Lotteriinspektionen at the time. Then, in 2019, when Sweden introduced new regulations related to the gambling market and Lotteriinspektionen became Spelinspektionen, she remained in her role.

Spearheading Spelinspektionen, Rosenberg helped the regulator continue to grow and gain new powers. Not unexpectedly, a prime objective for the regulator is to ensure that all licensees adhere to the established regulations which helps create a fair and safe gambling market for the consumers.

Appointment Comes Ahead of Expected Changes for Sweden’s Gambling Market

The extended term of the regulator’s director general comes after only recently, changes to the gambling regulation granted Spelinspektionen more powers. Under the recent changes, set to launch on July 1, 2023, the Authority would have the right to block electronic payments. The rules enable Spelinspektionen to block payments to and from unlicensed gambling operators, allowing stricter control of the market.

Additionally, the changes will enable the Authority to use a hidden identity for purchasing gambling services. This seeks to expand its options to oversee the market, allowing it to see if operators adhere to the established regulatory framework in Sweden. Spelinspektionen would also have the option to keep personal data when investigating potential match-fixing cases within the sector.

“It feels good to be able to continue working on launching the various parts of the reform and taking the continued important steps for a well-functioning Swedish gaming market.“

Camilla Rosenberg, director general of the Swedish Gambling Authority

Without any doubt, the regulator has seen significant changes under the guidance of Rosenberg. Sharing her excitement, she said that it is thrilling to be a part of a strategic reform for the gambling market in the country. Finally, Rosenberg vowed to continue to help the Authority make changes to ensure a better licensed gambling market.

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Spelinspektionen, Sweden’s gambling regulator, announced that the government has urged it to work together with the Financial Supervisory Authority (Finansinspektionen) to combat illegal gambling. This comes following the introduction of changes to the gambling regulator’s powers.

According to the Swedish government, the Spelinspektionen and the financial authority should work together to control financial transactions related to gambling. Collaboration between the two regulators will help them closely oversee the sector and, for example, block payments to unlicensed companies when needed.

Camilla Rosenberg, director general of the Spelinspektionen, addressed the matter, saying that she sees the government’s proposal as very positive. According to her, partnering with the Financial Supervisory Authority will provide ample opportunities to put the tools available to the Spelinspektionen to use.

The strengthened cooperation with the Financial Supervisory Authority will provide good conditions for all tools to be used efficiently and result-oriented, which we see as very positive.

Camilla Rosenberg, director general, Spelinspektionen

Prior to tasking the Spelinspektionen to working with the Financial Supervisory Authority, the government introduced changes to the regulator’s powers. As noted by the gambling authority, more changes will be introduced within the next six months.

Other Spelinspektionen News

Last month, it was proposed to provide the Spelinspektionen with more funds to combat illegal gambling. Around $230,000 was to be set aside for the watchdog, strengthening its abilities to fight against crime and illegal gambling in Sweden.

The proposal was a part of the spring budget amendment and was based on an agreement between the government and the Sweden Democrats. Back then, the Spelinspektionen welcomed the proposal, saying that this will help it fight money-laundering, match-fixing and other gambling-related crimes.

Meanwhile, the BOS, Sweden’s Trade Association for Online Gambling, approved a separate call for increasing fees for license applications and issuing, saying that the extra funds would help the Spelinspektionen cover its costs for licensing and supervision.

In early April, the Spelinspektionen released an update on its board. As announced by the regulator, its board will continue to field seven members, with the only notable change being that it will now be chaired by Per Håkansson.

The Watchdog Continues to Regulate the Market

In other news, the Spelinspektionen just issued a B2B license to Soft2Bet, allowing it to complement its existing B2C business in the country. A few days prior to that, it also issued B2B licenses to Push Gaming and Pariplay.

Meanwhile, the authority slammed Bet365’s Hillside Hit brand with a $7.7 million fine over various violations. A day earlier, the Spelinspektionen also fined Betfair for accepting illegal bets in the country.

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The Swedish Gaming Authority (Spelinspektionen) is likely to receive new funds to help its mission to enhance the supervision of the gaming market in the country and oust unlicensed operators.

Combat Organized Crime

The Swedish government proposed legislators increase the budget allocated to Spelinspektionen in 2023 by SEK2.4 million ($230,360) to boost the watchdog’s capabilities to counter organized crime and create a safer gambling marketplace in the country.

The proposal was made as part of the upcoming spring budget amendment and is based on an agreement between the government and the Sweden Democrats, justified by the regulator’s need to handle a large influx of permit applications concurrent with other important supervisory tasks in 2023.

Commenting on the proposal, Angelika Bengtsson, sports policy spokesperson for the Democrats, outlined the regulator’s need for active supervision of the gaming market to be able to combat criminal activity and protect those who are most exposed.

Tackling the unlicensed market represents a significant part of this task, she added, explaining that it would help counter organized crime and strengthen consumer protection as “unlicensed gambling evades tax revenue, leads to problem gambling and contributes to match-fixing.”

As the gaming industry in the country continues to grow and generate significant turnover, so does the risk for criminal activities such as money laundering and match-fixing related to the sector to occur, which, in many cases is also part of organized international crime with local branches. That risk is estimated to be the highest among operators that do not hold a license.

Block Payments, Covert Supervision

Therefore, the government submitted a proposal for measures that would give Spelinspektionen powers to more effectively block payments for unlicensed operators as part of its enforcement actions and allow the regulator the opportunity to perform covert supervision.

Financial Markets Minister Niklas Wykman stressed the great damage that can be done by unlicensed gaming operators and the need for the national regulator to remove them from operating in the market, highlighting that the increased resources would facilitate the regulator’s ability to use its new supervisory tools and tackle the black market.

A recent study into the habits of gamblers in the country showed that only 8% of them participated in gambling activities via an unlicensed website, of which only 6% admitted to having gambled with offshore operators intentionally, while the remaining 2% said they had done this without knowing.

Further encouraging for Spelinspektionen, 77% of the participants in the study declared their intention to refrain from gambling with unlicensed operators.

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