The Swedish Trade Association for Online Gambling (BOS) has formally submitted its statement to the Ministry of Finance regarding the memorandum titled “A new ban on gambling on credit,” which proposes a ban on the use of credit cards for gambling. BOS has firmly rejected this proposal, citing significant negative consequences for channelization.

Gustaf Hoffstedt, Secretary General of BOS, explained the association’s stance [pdf], emphasizing that such a ban would likely push consumers towards unlicensed and illegal gambling platforms, which currently constitute almost half of the Swedish online casino market. Hoffstedt stated, “In the name of consumer protection, Sweden should not add new restrictions on consumers that still place their bets on the legal gambling market.”

Alternative Proposal Suggested by BOS

If the government decides to proceed with the ban, BOS proposes an alternative approach: instead of placing the obligation on gambling operators, the responsibility should be on credit card issuers. Under this model, the Swedish Financial Supervisory Authority (Finansinspektionen) would supervise credit card issuers to ensure they do not process payments for gambling companies, including those operating illegally or without a license.

BOS argues that this approach would more effectively prevent the use of credit cards for gambling while avoiding further burdens on licensed operators. Hoffstedt pointed out that licensed gambling operators are already heavily restricted and additional limitations could drive more consumers towards the unlicensed market, undermining consumer protection goals.

BOS’s Rationale for Rejection

BOS has consistently supported measures to prevent gambling on credit. However, the association draws a line at banning credit cards, which are a common and regulated form of payment. “At least one credit check is conducted before issuing a credit card,” Hoffstedt noted, “and in most cases, credit is repaid monthly, accruing no interest.”

The association also highlighted that credit card usage for gambling is on the decline, with many consumers shifting to other payment methods like Swish. Those who do use credit cards for gambling are typically older with more organized finances, and the prevalence of problem gambling among them is relatively low.

The biggest challenge, according to BOS, is the prevalence of unlicensed gambling, a view shared by Finance Market Minister Niklas Wykman. Hoffstedt stressed that restrictive measures against licensed operators, such as the proposed credit card ban, combined with inadequate countermeasures against unlicensed operators, have led to a significant outflow from the legal gambling market. “This must end,” he said, emphasizing that enhancing the attractiveness of the licensed market is crucial for effective regulation.

Concerns Over Government’s Approach

BOS expressed concern over the government’s tendency to exempt state-owned or controlled gambling operators from new restrictions, creating an uneven playing field. The association fears that this might undermine competitive neutrality and consumer confidence.

In conclusion, Hoffstedt reiterated BOS’s position that the proposal to ban credit cards for gambling should be rejected. He emphasized that effective regulation should include measures to counteract unlicensed gambling while supporting the legal market.

“Sweden’s largest online casino operator is likely unlicensed,” Hoffstedt noted, underscoring the need for balanced regulation. BOS believes that imposing the ban on credit card issuers rather than gambling operators is a more effective and fair approach to achieving the intended consumer protection goals.

Source: Press release: BOS rejects the proposal A new ban on gambling on credit. BOS. May 23, 2024.

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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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It has come to light that a significant number of Swedish influencers on the video platform Twitch have been endorsing unlicensed online casinos, sparking concerns about the promotion of illegal gambling activities.

Following a thorough investigation conducted by Kulturnyheterna, the investigative arm of Sveriges Television AB (SVT), it was uncovered that eight out of ten prominent Swedish influencers on Twitch have been actively promoting unlicensed casinos to their vast audiences.

Over a period of six weeks, Kulturnyheterna meticulously reviewed the broadcasts of these influencers, revealing how they have been disseminating advertisements for unlicensed online casinos through extended live streams, urging hundreds of thousands of followers to engage in gambling activities.

The investigation further highlighted that these influencers collectively reach an audience of approximately half a million subscribers, predominantly comprising young males born in the 1990s and 2000s.

During their live streams, 60% of these influencers employed direct marketing tactics, including sharing links to unlicensed casinos in their profiles and broadcasts, as well as enticing followers with bonus incentives to create casino accounts.

According to Kulturnyheterna’s report, these influencers were observed actively encouraging their viewers to gamble, participating in gambling activities alongside their audience, and even involving viewers in decisions regarding wagers, thereby intensifying engagement in gambling-related content.

Swedish Gambling Regulator Takes Aim at Twitch

Twitch, owned by Amazon, has faced scrutiny over its role in facilitating these advertising infringements. Despite implementing community guidelines in 2022 to prohibit the promotion of gambling content, Twitch has seemingly struggled to curb such activities effectively.

Kulturnyheterna has submitted its findings on these advertising violations to Spelinspektionen, Sweden’s gambling regulator, emphasizing Twitch’s status as the primary platform for promoting unlicensed casinos.

Spelinspektionen, armed with enhanced enforcement powers granted by amendments to the Gambling Act of 2018, has recently taken decisive action against illegal online gambling operators. Last week, Spelinspektionen announced the prohibition of a network of skin online gambling websites, which were primarily promoted on platforms like Twitch and YouTube.

While Spelinspektionen has yet to comment on Kulturnyheterna’s investigation, it has reiterated that advertising unlicensed gambling is illegal under Swedish law. Violators risk facing severe repercussions, including business bans and potential police intervention.

Similar action was also taken in Norway. Norway’s Gambling Authority declared a zero-tolerance stance towards social media platforms promoting online gambling content, enforcing a blackout on gambling advertising except for state-owned monopolies. The actions by the authority included warnings issued to Schpell.com and other entities.

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Last September, several regulated operators in Sweden complained that a financial services company that offers next-gen open banking payments and payouts, Finshark, had facilitated a series of money transfers between consumers and unlicensed operators in the country.

A few of the worried operators carrying a license went further and asked the country’s expert authority in gambling and lottery, the Swedish Gambling Authority (SGA), to perform a careful assessment in light of additional similarities to a directive from roughly four months ago. 

The said directive convinced the provider of instant bank payment solutions that seamlessly integrate into existing systems, Zimpler, to stop providing a similar service to operators.

Things Have Gotten Worse 

As it appears, the gambling industry in Sweden does not have any good news to announce regarding the evolution of things. 

On the contrary, problems are not only persisting, but they have gotten worse in the context of an extra pay-and-play feature being allegedly added to the list. 

The primary allegation concerns a series of casino websites that are under the ownership of Infiniza Ltd, which is a Malta-based company that runs under a license issued by the prestigious Malta Gaming Authority in 2018. 

According to screenshots courtesy of NEXT.io, Swedish games are able to sign in using Swedish mobile phone numbers and complete deposits via the national identity verification system BankID with a number of banks in the country. 

The list includes Handelsbanken, Nordea, and Swedbank. The deposit’s recipient is instant payment provider Krofort which does not showcase any information regarding a license. 

Allegedly, Infiniza is the sole gaming operator in Sweden with online casino brands connected with both Krofort and Finshark. This would give it a competitive edge over licensed operators.

In 2023, regulated providers emphasized that operators in the grey market have the advantage of being able to use these types of fast payment services which are expected from domestic players looking for fast cashouts. 

The same operators raised concerns regarding the reasons why the SGA has failed to take any course of action as of yet.

The SGA Can Block Payments 

At the start of March 2023, the regulator announced it would clamp down on business-to-business suppliers offering their products to unregulated operators targeting Swedish players while failing to comply with the regulations. 

In spite of the fact that payment provision was not part of the newly installed regime, the SGA was given the right to block payments. 

In July, the authority instructed Zimpler to stop offering payment solutions via BankID to operators functioning without a license. 

Zimpler followed suit and an end to its ties with gaming companies licensed in the European Union that did not carry a Swedish license while deciding to also appeal the decision on the grounds that it affected it while raising legal problems that required clarification for the well-being of the industry.

Earlier this week, the SGA banned Smein Hosting and True Polygon Entertainment at the end of an investigation that showed they were targeting domestic players in Sweden without authorization. 

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A November 2023 survey conducted by the Swedish Gambling Authority (SGA) in collaboration with research company Enkätfabriken provides valuable insights into Swedes’ gambling habits and awareness levels. The data sheds light on key trends and sentiments related to gambling in the country and highlights the government’s ongoing efforts to curb gambling harm.

Effective Regulation Requires Comprehensive Data

The survey results revealed some intriguing insights into the gambling habits of Swedes. According to the data, a staggering 75% of Sweden’s population had engaged in gambling activities in the past 12 months. At the time of the study, 41% of respondents had gambled in the last week, showcasing an increase compared to previous surveys in 2022 (38%) and 2021 (34%).

Relatively low-risk verticals remained the most popular, with lottery retaining its position as the most popular form of gambling. 74% of respondents who had gambled in the last 12 months revealed they had participated in lotteries, with trotting ranked second with 25%, followed by sports betting and bingo at 15%, and online casinos at 10%.

Gambling harm rates appear to be on the rise, as roughly 10% of respondents felt that they had gambled too much in the last year. The percentage of people who played to chase profits also increased, as did the number of respondents who knew someone close to them experiencing issues with excessive gambling.

The Unregulated Sector Is on the Rise

The survey revealed a worrying lack of awareness regarding black-market gambling, as 91% of respondents did not know how to determine if a website held a Swedish gaming license. Even among those who played almost daily, 59% could not identify licensed sites. Only 40% believed playing at licensed sites had an advantage, marking a 13% decrease from the 2022 survey.

Such data aligns with warnings from Sweden’s online gambling association, Branschföreningen för Onlinespel, which highlighted how misguided regulations made licensed operators less competitive compared to black market entities. The organization notes that the upcoming gambling tax increase will further exacerbate these issues and further destabilize the country’s fragile market.

The newest SGA data highlights the need for increased awareness and education on responsible gambling practices. Swedish gamblers require better ways to identify licensed sites and understand the advantages of playing on licensed platforms. Rising problem gambling rates also indicate that the government needs to rethink its policies and focus on counteracting unlicensed operators.

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In a landmark ruling by the Swedish Patent and Market Court of Appeal, Betsson, a prominent betting company, has been mandated to refund all losses the plaintiff, a man suffering from a gambling disorder. This development has significant long-term consequences and follows similar cases in other European jurisdictions.

Betsson May Face Other Such Lawsuits

According to the court’s decision, Betsson must repay all of the plaintiff’s historical spending and additional compensation for mental distress. According to the individual, Betsson engaged in extensive and aggressive marketing tactics like frequent bonuses despite being aware of his status as a problem gambler. Since this happened before the company received its Swedish license, he had little legal recourse.

Magnus Rydeving, an expert providing legal guidance to individuals affected by addiction, noted that the court’s decision, ordering Betsson to reimburse the individual, potentially sets a precedent for similar cases from other victims. In an interview for Swedish media outlet Dagens industri, he noted that the sum for this individual trial may be just the tip of the iceberg.

“It’s hundreds of millions of krona, and that’s solely what I know about. Then, of course, there’s much more out there.”

Magnus Rydeving

Betsson might face the prospect of repaying hundreds of millions of krona to affected individuals, who can use this recent ruling to improve their chances of court victory. An influx of lawsuits could significantly hinder the company, costing it valuable resources and time. Betsson can still appeal to the Swedish Supreme Court, but the company has yet to disclose its intentions.

This Development Follows Broader Industry Trends

The silver lining for Betsson is that the case specifically targets the period spanning 2014 to 2019, preceding the regulation of the Swedish gambling market. Betsson was a grey market operator in Sweden before the industry underwent formal regulation in 2019. Any customers seeking legal action against the company after 2019 will likely face a significantly more difficult court battle.

This ruling aligns with similar legal precedents established in countries like Germany, Austria, and the Netherlands, where tens of millions of euros have already been recovered from gambling companies in almost 7,000 cases, with the argument being that companies acting against the law were not entitled to profits from such activities.

Sweden’s decision underscores the increasing legal scrutiny faced by gambling companies operating in unregulated markets, setting a precedent for accountability within the industry. However, it contributes to ongoing tensions between operators and EU regulators as some jurisdictions may become unsustainable for licensed stakeholders.

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The provider of world-class slot and table games popular in Western and Asian markets, Habanero, has expanded its presence on the Old Continent. 

The company with a portfolio that spans no less than 22 worldwide markets thanks to a plethora of agreements inked with big operators like Betway, Entain, Sportium, and Sisal has been granted a new business-to-business license from the Swedish Gambling Authority. 

Habanero, Authorized to Offer Its Entire Portfolio to Domestic Operators

According to the new license, Habanero is now allowed to provide its entire catalog of more than 150 HTML games including slots, video poker, and table games to operators in the area. 

The list includes successful slots like Santa’s Village, Hot Hot Fruit, and Mystic Fortune Deluxe.

Commenting on the fresh Swedish license, Habanero’s head of business development, Arcangelo Lonoce, explained that the fact that they have been awarded a Swedish license was “both gratifying and exciting,” helping their plans to scale up their operations in the respective market. 

The fresh Swedish license will also assist Habanero with its goal to sign new partnerships with fresh stakeholders in an attempt to introduce its universe of games to a larger number of players.

Lonoce called the new license “a testament to our dedication to our adaptability as well as our commitment” to explore and comply with new global regulatory landscapes.

Perfect Fit for the Swedish Market

Reevo’s head of sales, Petra Maria Poola, also commented on Habanero’s “diverse, boundary-breaking games” and their admirable fast expansion while commenting on the company’s ability to align with the continuous regulatory efforts in Sweden. 

Poola also mentioned the recent Swedish Gambling Authority’s five-year license extension granted to Videoslots, which came in spite of the penalty that was imposed on the same operator because of a series of problems related to anti-money laundering compliance.

In mid-October, Habanero launched Slime Party, a fresh slot with multipliers and free spins. The developer also obtained an MGA license and a series of approvals in a number of global regions, including Romania, Panama, and Buenos Aires.

In June, the company was granted the prestigious ISO-27001 Certification that allows it to deploy more products and get licensure in individual European markets. 

Habanero’s games work seamlessly across all types of devices and can be played in landscape and portrait modes on mobile. Players can also enjoy several games simultaneously, configure their jackpots, set up their preferred bets per game, and wait for new titles to be released every month. 

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The shortcomings of the Swedish Gambling Authority have been laid bare by a report conducted by the National Auditor’s Office.

This comprehensive audit revealed a lack of vital resources and expertise within the organisation, which resulted in a struggle implementing staunch gambling regulations.

Quoted in the report, National Auditor Helena Lindberg stated, “The Swedish Gambling Authority has been given a comprehensive and difficult task, but it has been poorly equipped several times over to enforce it.”

This quote underscored the key findings in the audit, which underlined the regulation’s struggle to curb illegal gambling and accomplish enforcement goals.

According to the report, the authority failed to develop preemptive measures, contributing to the rise of unlicensed gambling operations.

READ: Top online casinos in Sweden

In addition, the lack of concrete outcomes to enforce regulations was deemed to be a significant deficit in the authority’s efficiency.

The report pointed out that the failings are primarily due to the lack of knowledge and resources to handle the comprehensive task at hand.

The National Auditor stated, “The authority lacks the expertise to take on its comprehensive responsibilities, and there is a risk that it will not achieve its overriding objectives.”

It further highlighted that the authority was ineffective in supporting those with gambling addiction, mainly because it didn’t contribute enough to research and treatment.

The duty to support these addicts is seen as a shared responsibility between the state, municipal governments, and counties, with the auditor cautioning that the system could collapse without sufficient resources and expertise.

Interestingly, Sweden’s gaming market is one of the largest in the European Union. According to data from H2 Gambling Capital, the country generated around EUR 1.418 billion in gross gaming revenue in 2020.

However, it is also one of the most regulated markets, with the national regulator enforcing strict rules to protect consumers from gambling-related harm.

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Leading Swedish gambling operators, Kindred Group, Svenska Spel, and ATG, have released their latest data on responsible gambling in Sweden, revealing that a significant number of players change their behavior after being contacted by the operators.

Operators Release Responsible Gambling Metrics in Sweden

In an effort to promote transparency and responsible gambling, the three operators began sharing internal data on their responsible gambling initiatives in the autumn of 2022. The data is submitted to the Swedish gambling regulator, Spelinspektionen, every six months.

The published data covers four key areas: the percentage of players contacted due to risky gambling behavior, the impact of operator contact on players, the number of players who reduced their problem gambling habits, and the percentage of players who completely stopped gambling.

During the period under review, Kindred reported that 0.5% of its customers were contacted over suspected or at-risk problematic gambling behavior. This percentage remained consistent with the previous six-month period. 

Of those contacted, 75.1% reduced their gambling activities after interacting with the operator, and 75.8% decreased their average gambling deposits. Additionally, 1.1% chose to self-exclude from Kindred’s platform for less than six months, while 0.8% opted for a self-exclusion period of six months or longer.

Additionally, in April Kindred Group disclosed a reduction in its revenue share from harmful gambling for the first quarter of 2023.

ATG’s Responsible Gaming Efforts Yield Positive Results: 57.3% Reduce Gambling

ATG, on the other hand, contacted 1.9% of its customers regarding their gambling behavior during the period, an increase from the previous six months’ figure of 1.4%. Following operator contact, 57.3% of users reduced their gambling, and 61.1% decreased their deposits. Moreover, 1.4% of customers chose to self-exclude for up to six months, while 1.9% opted for a self-exclusion period longer than six months.

Sophie Linghag, the head of fair play at ATG, commented: “It is important that ATG, Kindred and Svenska Spel continue to report key figures for responsible gaming in an equivalent manner. Transparency helps to drive the gambling industry in a more sustainable direction. The key figures should be reported because they form the core of the duty of care, an important provision in the Gambling Act: monitor risky gambling patterns, initiate contact, and ensure limited gambling when there are reasons for it. “

Although Svenska Spel did not provide full figures, CEO and president Patrik Hofbauer noted that seven out of ten customers reduced their gambling habits after being contacted by the operator. The positive effect of the operator’s measures was emphasized, particularly in light of the company’s marginal year-on-year increase in net gaming revenue, primarily driven by digital growth.

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The renowned provider of iGaming and sportsbook software and content, Altenar, announced it expanded its presence on the Old Continent after securing an important license. The company confirmed on Monday that it has been granted a business-to-business (B2B) license from the gambling regulator in Sweden, the Swedish Gambling Authority or Spelinspektionen.

Securing the B2B license marks an important achievement for Altenar as it enables the company to continue to grow its presence by delivering its services to operators within the regulated gambling market in the country. The strategic license comes in anticipation of planned changes to the market in the country that would require providers of iGaming and betting technology, such as Altenar, to have a B2B license.

The new B2B license in Sweden comes during a busy period for the company. Over the last year, Altenar was recognized with prestigious awards from the Baltic and Scandinavian Gaming Awards, SBC Latin America and MiGEAs, among other prestigious events for the iGaming and betting vertical. The recent license also resonates well with the company’s ongoing global expansion. By now, Altenar has licenses in 13 major gambling markets around the globe, including licenses from the MGA and the UKGC.

The Company Continues to Expand Its Presence

Marina Zacharopoulou, Altenar’s technical compliance manager, explained that to secure the license in Sweden, the company has gone through an extensive evaluation process. The result of the process reaffirmed the company’s commitment to ensuring the highest standards for security and quality, while at the same time supporting responsible gambling.

Zacharopoulou, added that Altenar is proud to secure this license which clears the path for the company’s further expansion in the country. “Altenar remains dedicated to maintaining its reputation as a trusted and reliable provider of gaming software,” said the company’s technical compliance manager in conclusion.

“We have undergone a rigorous evaluation process and have demonstrated our commitment to upholding the highest standards of quality, security, and responsible gaming.“

Marina Zacharopoulou, technical compliance manager at Altenar

The B2B license in Sweden comes after earlier this month, the company announced an important partnership with Palms Bet, expanding further its footprint into the Bulgarian gambling market. The collaboration represented an important milestone for the two companies, allowing them to continue growing their presence in the country.

On the other hand, the license in Sweden also complements Altenar’s growth, considering the potential of the market in the country. Without any doubt, the country is one of the important betting jurisdictions in Europe, considering that in 2022, betting gross gaming revenue in Sweden increased by 7% year-over-year.

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