Sweden Should Consider Umbrella B2B Permits

Sweden is eyeing the introduction of licenses for business-to-business gambling companies. The country’s regulator, the Spelinspektionen, hopes that this measure would reduce illegal gambling. However, there are some concerns about the actual impact the permits may have on channelization.

Sweden Is Considering Permits for B2B Companies

The regulator’s idea is the following: if Sweden requires B2B companies to obtain permits before entering the country, this would help reduce illegal gambling. Basically, it would allow the Spelinspektionen to take away the licenses of suppliers that offer their products through illegal operators, ensuring a healthier market.

The gambling industry seems supportive of the idea. Gustaf Hoffstedt from Branscheforenigen för Onlinespel (BOS), a Swedish trade union representing over twenty operators, said that his association doesn’t oppose B2B licenses. However, BOS is somewhat doubtful that the measure would be as effective in curbing illegal gambling, as the Spelinspektionen expects it to be.

In addition, Hoffstedt pointed out that the measure may have an undesired negative effect on businesses that accept Swedish customers but are not actively targeting the market. He reminded people that Sweden allows many unlicensed B2C companies to take bets from Swedish customers, as long as they don’t promote their products to Swedes. Hoffstedt concluded that he hopes the introduction of B2B permits will improve channelization by at least one or two percent.

If Sweden approves licenses for B2B suppliers, the measure would come into power starting July 1 next year. The Spelinspektionen will likely open applications earlier, with March 1 as a possible starting date.

Umbrella Permits Might Alleviate the Administrative Nightmares

Having explained BOS’ general stance on B2B permits, Hoffstedt moved on to talk about potential complications. He pointed out that the law doesn’t currently offer umbrella permits. Because of that, as things are now, large suppliers with many different subsidiaries would have to submit many applications. This, in turn, would likely cause unnecessary administrative burdens.

Because of that, Hoffstedt believes that the legalization of umbrella permits is highly desirable in order to avoid “administrative nightmares.” He asked the regulator to find a way to make umbrella permits happen.

The current bill will also introduce minor changes that will come into effect from January 1. You can read more about the gambling reforms here.

Meanwhile, Sweden continues to thoroughly regulate its market and penalize incompliant companies. Two weeks ago, the Spelinspektionen fined ATG for failing to comply with certain AML rules. Several days prior to that, the regulator banned SG International from the country.