The revision of Sweden’s Gaming Act has instigated a series of impactful modifications to the nation’s gambling legislation. As a key component of these adjustments, set to come into effect beginning July 1, is the allocation of specific powers to the Swedish governing body for gambling, Spelinspektionen.
These newly established powers include not just the authority to block electronic payments under the assumption of these payments being transacted towards unlicensed gambling entities, but also the ability for the regulatory body to purchase gambling services using an undisclosed identity, and to store personal data in an effort to combat the extensive problem of match-fixing in the industry. Following, we will examine in-depth the modifications to Sweden’s gambling statutes and their prospective influence on the regulated market.
Mandatory Requirement for Gaming Entities to Report Information Related to Gaming Offences
Prior to these changes, we reported that the Swedish government had directed the country’s gambling regulator to join forces with the Financial Supervisory Authority to combat illegal gambling functions. This was a natural progression given the government’s unveiling of a proposal filled with measures aimed at ensuring consumers are adequately protected and fostering a more sustainable market, facilitated on May 17, 2022.
The proposed measures endorsed by Minister of Social Security Ardalan Shekarabi are now being actualized. Notably among these is the stipulation compelling operators to liaise with police and disclose any information that could potentially be relevant to crimes associated with the gaming sector in Sweden.
The government, keen to remove any restrictions that hamper effective supervision of betting companies in their native environment, has also endorsed covert operations legally for monitoring operators and identifying deviations from existing regulations. The newly bestowed authority is judged as an appropriate rule in the given circumstances.
As a result, Spelinspektionen, which retains a membership of seven, is now poised to clandestinely purchase online gambling services and verify operators’ adherence with the Gaming Act. Operators should expect notifications regarding this covert purchase process in due course.
“Logistical Challenges” Impede the Enactment of Payment Blocking
Although the initial Gaming Act decreed the regulatory body’s freedom to enforce payment-blocking procedures, no such measures have been carried out till now, with Spelinspektionen pointing out certain “logistical challenges” which created hurdles for its practical application.
The previous powers relative to payment-blocking have been substituted by a fresh set that necessitates a different approach. These novel powers, vital for achieving the country’s channelization objectives as outlined by the government, will now also envelop payment service providers during their implementation.
This shift paves the way for a more robust understanding of the ebb and flow of stakes and winnings between operators and their corresponding return.
The regulatory body will now have the license to formulate new sets of regulations determining the exact obligations of payment providers in terms of supplying the necessary information for the effective blocking of illegal transactions.
