The Treasury has released its final report analyzing the re-regulated Swedish market to assess the success of opening it up to licensed operators. In evaluating the new regulatory system, the Treasury focused on several criteria, including the level of “public control” over the gaming market. The report indicated a significant increase in channelisation from 50% in 2018 to 87% in 2021, demonstrating the positive impact of Sweden’s licensing system for gaming companies. However, the channelisation rate fell slightly short of expectations, although it exceeded the figures from 2020 and 2019. The Treasury emphasized that channelisation should serve as a tool to achieve broader objectives rather than a sole measure of re-regulation success.
The report also addressed the challenge of combating illegal gambling under the new system. The Swedish authorities have limited influence over offshore platforms, making it difficult to curb unlicensed play effectively. Measures empowered the regulator, Spelinspektionen, to block payments and websites of unlicensed operators targeting Sweden, but these actions have had no significant impact thus far. The approved tools for blocking websites and implementing payment blocks are considered burdensome due to the requirement for court approval and the necessity to demonstrate “special reasons” for website blocking. However, the government is actively working on additional proposals to address unlicensed gambling, including the introduction of a B2B software provider license and classifying all unlicensed gambling within Sweden as illegal, irrespective of whether Swedish customers are targeted. The report also mentioned a Law Council proposal to outlaw affiliates from advertising unlicensed gambling sites.
To ensure transparency and effective regulation, the Treasury recommended that Spelinspektionen publish quarterly reports detailing channelisation rates in the market, including breakdowns by game type. Cooperation with regulatory bodies in other European countries was also highlighted as crucial for cracking down on unlicensed gambling. Regarding consumer protection, the report acknowledged that safeguards had been strengthened but suggested that more work was needed. Operators are now required to implement various controls, such as integrating with the self-exclusion tool Spelpaus and imposing limits on bonuses. However, there was no clear evidence that the re-regulation had significantly influenced the extent of gambling problems. The report also identified certain obstacles to strengthening player protection, such as the lack of clear support in the Gaming Act for gaming companies to process players’ financial information, which makes obtaining comprehensive player information challenging. Additionally, the restriction on bonuses, limited to sign-up offers, may have unintended consequences by driving players toward the unlicensed market or encouraging them to create multiple accounts. Affiliates were also mentioned as potential obstacles to safe play. The report highlighted that comparison pages from affiliates may not always clarify that they are advertising, leading players to perceive them as independent advisors. While operators bear responsibility for their affiliates’ marketing activities, the Treasury stressed the need for increased supervision of affiliates’ marketing efforts since they can also be liable for irresponsible marketing.
