The gambling industry, which covers online and land-based lotteries, casino games, and other forms of betting, is a multi-billion-dollar industry. While strict gambling laws are imposed in several countries, including Sweden, bettors often transact with a gaming company without a license or Spelbolag utan licens in their native language.
As a heavily regulated industry in Sweden, the betting sector is subject to various amendments to ensure a safe, legal, and responsible industry. Although operators are strictly monitored, bettors may have a little leeway by engaging with overseas operators and betting utan Svensk licens (translation: betting without a Swedish license).
Read on to find more information about the Swedish betting license as well as details on gaming companies without government authorization in this Nordic country.
Is Betting On Casinos Without Swedish License Illegal?
It’s crucial to address this question before moving on with some valuable information about the Swedish betting license. From a strictly legal standpoint, while the new Swedish Gambling Act provides strict regulations for gambling companies, no provision in the law prohibits Swedish players from choosing an online site that offers casino games and other betting activities. As such, the Swedish market is not entirely closing its doors to a gaming company without a license.
To learn more about playing at casinos without a Swedish gaming license, check this out:
Besides preventing anti-money laundering schemes and finding terroristic activities, the Swedish government is also concerned about the risks involved in gambling. The law prohibits unlicensed operators from marketing and advertising gambling activities aimed at the Swedish public. Even companies with Swedish betting licenses are subject to specific marketing restrictions.
The Swedish Gambling Act
Enacted into law on January 1, 2019, the new Swedish Gambling Act aims to regulate all forms of gambling activities in the country, including betting games that involve exchanging money. The said law also strongly discourages gambling operators from offering their services without obtaining a Swedish license. Betting companies are likewise prohibited from engaging in advertising activities that promote gambling.
The law has also introduced several regulatory provisions to help minimize the dangers of the sector being used to launder money or fund terroristic activities, which are new threats discovered while surveying the industry recently.
Salient Points Of The Swedish Gambling Law
- Gambling operators have a ‘duty of care’ to their players, helping them avoid addiction or excessive gambling.
- Players must register before playing (for gaming companies with Swedish licenses only).
- Swedish players can only deposit or spend no more than SEK5,000 (USD$549) per week on online gaming activities.
- All casinos accredited by the Swedish government must use Spelpaus—a self-exclusion program for those who want to take a break from gambling.
- Licensed operators can only offer bonuses for first-time players.
- The Swedish Gambling Authority (SGA) can request to block payments or oblige Spelbolag utan licens to issue warning messages about the risks of gambling.
- Operators must not accommodate players below 18 years old.
- Marketing shouldn’t target minors and individuals who’ve decided to stop gambling.
- Licensed gaming companies must pay 18% in taxes while gambling activities ‘for a cause’ are tax-exempt.
- Gaming companies must not engage in game-fixing and other fraudulent activities to avoid potential criminal sanctions.
The Swedish Gambling Authority
Known in the native Swedish language as Spelinspektionen, the SGA oversees all forms of gaming, whether online or land-based. Before enacting the new Swedish Gambling Act, this agency was known as the Swedish Lottery Inspectorate. It operates under the Ministry of Finance and comprises government-appointed board members.
SGA Functions And Tasks
Besides the name change, the government provided the agency with additional core responsibilities. All in-person and online casino betting, including popular games like blackjack, roulette, and poker bingo, are subject to SGA’s regulatory and monitoring process. This also includes online and land-based forms, such as sports betting, horse race betting, and even fantasy betting, as long as money is involved. Online lotteries are also governed by the said agency, while local governments supervise in-person lotteries.
Apart from overseeing the entire gambling and betting sectors and ensuring regulatory compliance, the SGA also issues permits and licenses. Some of SGA’s fundamental tasks are the provision of training and dissemination of information on new legislation and coordinating with the government and overseas gaming sectors.
According to the Spelinspektionen website, gross revenues from licensed operators reached SEK24,690 million (USD$2.715 million) in 2020.
Different Types Of Gambling And Betting Licenses
To launch legally recognized gambling operations in this Nordic country, gambling and betting operators must secure any of the different types of licenses, each defining the manner and purpose of the activity. The following are the six classifications of Swedish gambling licenses:
- State monopoly license: Land-based casinos, slot machines, and some forms of lottery games are covered by this gambling accreditation scheme.
- Land-based commercial gambling license: If the company offers its services to a broader public, typically outside of the casino and in venues authorized to serve alcoholic beverages, it must first obtain this type of authorization from the SGA. Besides hotels and restaurants, card games held outside traditional gaming venues must obtain a permit before the game.
- Charities/good cause license: As the name implies, this is for betting and gambling activities that benefit a particular group of people. Before initiating a ‘bingo for a cause,’ organizers will have to coordinate with municipal authorities for authorization. This license is often reserved for religious groups and nonprofit organizations.
- Gambling on ships/vessels in international traffic: Casino games and gambling machines operating inside global shipping vessels must secure this permit to be legally recognized.
- Commercial online gambling license: Digital casinos and online betting site operators, ideally, need to get this license for accreditation
- Betting license: Horse race and sports betting are covered by this license type. Guessing the outcomes of a specific lottery game is also included, provided that the lottery operator has expressed its consent on the said undertaking.
Applying For A Gaming And Betting License
Online betting and gaming activities have notably increased since the pandemic, according to various sources. Amid the lockdowns and restrictions in 2020 and 2021, individuals spent most of their time inside their homes, triggering a renewed interest in online gambling, betting, and gaming. A market study conducted by research firm Global Industry Analysts Inc. estimated that the global market for the sector reached USD$711.4 billion in 2020.
Gaming companies who wish to get a slice of the market, especially in Sweden, must comply with multiple legal requirements. As a general rule, licenses may only be issued to an individual proven to have enough knowledge, experience, and organization to run a gaming company. Owners must have expressed their commitment to abide by the rules set by the Swedish government.
Individuals Disqualified From Obtaining A License
Conversely, applicants who have declared bankruptcy, are below the legal age of 18 and have had previous records of business commitment failures and criminal history are automatically prevented from obtaining a gaming authorization.
Companies that plan to run events or activities that are deemed publicly inappropriate will face rejection.
Basic Licensing Requirements And Costs
The process of getting a Swedish betting license can be time-consuming and costly. Interested gambling operators and companies will have to submit various documents. These include basic information about the qualified owners and key personnel, explanation on personal data-handling procedures for its clients, financial papers, gambling tax application, and other applicable registration papers and licenses, to name a few. All documents must be in Swedish and will only be processed after paying the application fees.
The cost of getting a commercial online gambling and betting license is SEK400,000 (USD$54,974.40) each. If getting both, an operator pays SEK700,000 (USD$76,968.78). Permit renewals cost SEK300,000 (USD$32,986.62), while any changes to the license will set a company back at SEK150,000 (USD$16,491.31). State lotteries that give back to the community are charged anywhere from SEK5,000 (USD$549) to SEK150,000 (USD$16,491.31), depending on their earnings.
Apart from these permit and licensing fees, gaming companies will have to pay additional supervisory costs to the SGA. The rates will depend on the firm’s gross income. For instance, a gambling operator who earned less than SEK10 million should prepare SEK30,000 (USD$3,294.45).
Betting On Sites Without A Swedish License
As mentioned earlier, Spelbolag utan licens is not legally prohibited in Sweden, even if the government has set stringent regulatory rules.
There are many reasons why a company may not apply for a Swedish license. These include:
- High costs and stringent requirements
- A rejected application
- Expired license and no longer interested in renewal
- Inability to pay for the 18% tax requirement
While some may think that online gaming companies rake in a lot of cash and could afford to pay all taxes, licensing permits, and other accompanying costs, this may not be true for all firms. Some owners maintain small-scale operations with unpredictable earnings and find the costs prohibitive.
Spelbolag Utan Licens Vs. Swedish-Licensed Gambling Companies
Apart from potentially discouraging operators from applying for a license, regulatory measures may have also impacted the Swedish betting public. Statistics show that the country has the highest rate of women casino players worldwide. According to marketing firm Optimove, Swedish women comprise 32% of the total female casino players, followed by the United Kingdom (30%) and Italy (21%).
In general, the Swedish population may find betting in gaming sites of firms without a Swedish license less restrictive than those accredited by the government.
The points that Swedish bettors may find advantageous when dealing with Spelbolag utan licens are listed below:
No Need For Registration
In Sweden, online players need to register using their BankID and other personal identification numbers. Licensed online sites may also require players to enter financial information details and wait for a few hours to validate the information. This is one of the regulatory measures imposed by the government to prevent excessive gambling and ensure that the SEK5,000 weekly limit is in place.
While strict data protection laws govern Europe under General Data Protection Regulation (GDPR), individuals may still be worried about exposing their identities on online gambling sites. Gambling sites without Swedish licenses may ask you for specific information, but they won’t ask for your BankID details.
No Deposit Limitations
Swedish-accredited online sites are bound to impose a SEK5,000 (USD$549) weekly limit to all registered players. This is another regulatory measure aimed at reducing the incidence of gambling issues. Players who may have a higher risk appetite may feel controlled by this restriction; that’s why they choose gaming companies outside Sweden.
Unlimited Bonuses
The Swedish Gambling Act explicitly prohibits gaming companies from offering perks other than the one-time sign-up bonus. Gaming companies without a Swedish license aren’t obliged to comply with the said rule. Hence, they can offer multiple promotions and points to bettors to give them more value for their money.
Better Choices
Swedish online gaming firms, as mentioned, must comply with the rules stipulated in the law. Thus, they must impose specific restrictions on all its players. Apart from setting wager limits, bettors will also be subject to time limits; for instance, the three-minute rule for slot games and a restricted number of online casino games. Non-Swedish companies don’t have such prohibitions and can offer a wider variety of games that online players can take advantage of.
Playing in sites without Swedish accreditation also has accompanying risks despite these upsides. Settling the issue can be challenging when disputes arise. If you made the wrong choice on a gambling site, you may not get your game winnings in time.
Final Thoughts
As you may have realized, the gambling sector is a heavily regulated industry in several countries, including Sweden. However, despite the restrictions, bettors may turn to online sites for more options.
Online gaming sites aren’t illegal in the Swedish gambling market. As such, bettors can play casino games and other activities from providers who don’t have government accreditation. The fact that these sites aren’t subject to restrictions under the Swedish Gambling Act makes Spelbolag utan licens both beneficial and risky, especially if you don’t know how to choose smartly.
It’s essential to check online reviews and do company background checks, so fraudulent gambling sites can be prevented from taking all your hard-earned money. In online gambling, it’s not enough to rely on luck and chance.
