Spelinspektionen Seeks Power to Shut Down Unregulated Operators

The Swedish Gambling Authority (Spelinspektionen) announced that it has once again studied the Swedish unregulated online gaming market. Among other things, the report analyzed the main offshore operators in the country and requested powers that would allow the Spelinspektionen to intervene when it identified bad actors.

Spelinspektionen Surveyed the Unregulated Market

As mentioned, the Spelinspektionen surveyed the main players who engage in illegal gambling in Sweden. The authority analyzed their methods of reaching customers and reviewed how other regulated markets deal with such threats.

According to the Spelinspektionen, its survey sought to help both Swedish players and authorities.

The regulator’s main finding was that the unlicensed online gambling market is not only large but also easily accessible. It added that it has developed a range of methods to identify such websites. As of the time of this writing, the Spelinspektionen believes that the people actively seeking offshore websites represent fewer than 5% of the total number of players.

However, as things stand now, the Spelinspektionen has limited ability to prevent illegal gambling in the country.

Spelinspektionen Asks for the Ability to Shut Down All Offshore Operators

Spelinspektionen explained that the current legislation does not allow it to intervene against all gambling websites that offer gaming in Sweden without a license. Instead, the authority can only take action against unlicensed operators that actively target Swedish customers.

The targeting criterion applies to websites that actively market to customers in Sweden or have websites that have been clearly designed to appeal to local audiences.

Because of that, the Spelinspektionen called for a change in the Gambling Act that would change how unlicensed operators are treated. The authority asked lawmakers to allow it to change the scope of the act’s application to prevent all unlicensed companies from offering gambling in the country.

Sweden Considers Broadening the Scope of the Act’s Application

Sweden is currently investigating a possible expansion of the scope of the Gambling Act’s application. Camilla Rosenberg, director general of the Spelinspektionen, said that her team welcomes this investigation.

She believes that the Spelinspektionen has a crucial task to protect the local gaming market from offshore influence by combating illegal gambling. Despite the current limitations, she believes that the regulatory interventions are important and effective.

For context, the investigation into the expanded scope of application is set to be completed by September 17.

In other news, Sweden just opted to shut down its land-based casino sector after the Riksdag, voted to ban brick-and-mortar casino operations. This decision will lead to the closure of the final state-run Casino Cosmopol in Stockholm, marking the end of an era for Sweden’s land-based gambling industry.