Legal Compliance Investigation Initiated by Swedish Government in Response to Illegal Gambling Act

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Gunnar Larsson, director general of the Swedish Chamber of Commerce, has been appointed to lead an inquiry focused on enhancing legal compliance in the gambling industry. The inquiry aims to identify barriers to effective enforcement against offshore operators and propose solutions to improve controls. It will draw on the experience of Spelinspektionen, the country’s gambling regulator, particularly their challenges in blocking payments to offshore sites. The authorities’ previous efforts will also be evaluated.

“We have a duty to safeguard vulnerable consumers from illegal gambling and protect licensed companies in the gambling market from unfair competition,” stated Shekarabi. “To exclude illegal gambling from the Swedish market, we need to intensify our efforts. Additionally, we are increasing our focus on combating match-fixing and organized crime.”

Aside from addressing offshore gambling, Larsson will also explore new methods for the Swedish authorities to enhance their anti-match-fixing endeavors. The current efforts of both Spelinspektionen and the regulator’s Match-Fixing Council will be analyzed. This inquiry follows repeated appeals from licensed Swedish operators, urging the authorities to prioritize combating illegal gambling rather than introducing further restrictions for the regulated market.

During a consultation on proposals to extend controls for online casinos, licensed operators emphasized the need for IP and payment blocking, as well as the establishment of a licensing framework for B2B suppliers. LeoVegas, for instance, proposed several measures for the Swedish government to consider. The operator association Branschföreningen för Onlinespel (BOS), which has often criticized the government’s gambling policy, welcomed the inquiry.

BOS Secretary General Gustaf Hoffstedt remarked, “We appreciate this initiative from the government. Over the past two years, the re-regulated gambling market in Sweden has seen repressive actions against licensed operators while unlicensed operators have gone untouched. Consequently, there has been a significant outflow of Swedish punters from the licensed market, resulting in at least a 25% loss. Considering the government’s goal of having at least 90% of gambling within the licensing system by January 1, 2022, achieving this target seems distant. However, it appears that the government has acknowledged the flaws in their policy, thanks to consistent feedback from the regulated market.”

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