27 January 2022

New ad limits and business-to-business licenses are coming to Sweden.

New ad limits and business-to-business licenses are coming to Sweden.

Swedish Match
During a news conference yesterday (January 26), minister Ardalan Shekarabi laid out the suggestions. They will be officially implemented on January 1, 2023.

The regulations would make it such that any vendor providing services to Swedish operators must have a gaming software licence. This would aid in the closure of unlicensed gaming establishments in the nation, as stated by the ministry.

Extending the current prohibition on unlicensed gaming and outlawing the marketing of unlawful gambling are two other proposed measures. The Swedish government has proposed "stricter requirements for moderation" to regulate gambling advertising in an effort to shield problem gamblers and minors from the influence of such messages.

The government agency in charge of advertising alcohol suggested in June 2021 that similar "special moderation" be instituted for gambling ads. The Swedish gambling regulator, Spelinspektionen, agreed with this.

The Swedish Trade Association for Online Gambling Branschföreningen för Onlinespel (BOS) secretary general Gustaf Hoffstedt stated that it was "unclear" if the rule change announced today requires "special moderation" or a new norm.

In addition, Hoofestedt stated that BOS agrees with the steps being considered to combat illegal gaming, but that the organisation does not back more regulations on gambling advertising in Sweden.

"[The] BOS position is negative regarding the government proposing additional restrictions for gambling, especially if it is targeting online casino," an official statement from BOS said.

"In our opinion, in order to effectively combat unlicensed gambling, a licensed online casino needs extensive marketing opportunities."

A market disruption tax was also proposed by the ministry; this would be levied against operators who engage in disruptive direct customer marketing, such as through email.

As part of the final plan, licensees would be required to submit data that the ministry can use to track gaming industry trends and advancements. The BOS team was "cautiously positive" about this, according to Hoffstedt.

The minister of social protection, Ardalan Shekarabi, stated that the regulations aimed to restrict the unlicensed market as well as the overzealous advertising practices of legal companies.

The next move to reclaiming control of the Swedish gaming sector is being taken, he announced.

The goal is to put a cap on overly promotional gaming ads and to crack down on unlicensed gaming businesses. For consumers to be adequately protected, gambling regulations must be tightened.

A maximum deposit of SEK4,000 (£325.6/€389.2/$439.2) per casino was the subject of a survey that the government initiated earlier this month. In July 2020, in reaction to the new coronavirus (Covid-19) pandemic lockdowns, a contentious deposit cap of SEK5,000 was imposed. This ran out in November 2021 after being extended several times.

The Swedish government's announcement in October of a crackdown on offshore gambling operators allowed for the banning of all unlicensed gambling services from the Swedish market.

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