Clarification of Swedish rules on iGaming and online casinos

casino without swedish license with Tustly

Many of the leading software providers in the iGaming industry originate in Sweden, most notably NetEnt, Play 'N GO and Evolution Gaming. According to CUSL, numerous casino sites have also been founded in Northern Europe . So, obviously, Swedes are very fond of casino gambling and have a rich history of practising it. Until recently, however, the legislature seemed to care little about the legal status of gambling.

Sweden, long an unregulated market, took a leap forward in regulating gambling activities by passing the Swedish Gambling Act. The Act came into force on 1 January 2019, and according to the provisions set out therein, gambling operators without a Swedish license are illegal in the territory.

A brief history of gambling laws

Going back in time briefly, we will see that there have only been three relevant gambling laws in the country:

The Lotteries Act of 1994
The Casino Act of 1999.
Amendment 2002.
The main thrust of the "lottery law", as the name suggests, was to supervise lottery-style games in the state, banning foreign lotteries. However, its scope also extended in part to slot machines, card games, dice games, roulette, horse racing, etc. Д.

"The Casino Act was a step towards further regulation of casino games. It stabilised restrictions and limitations for both operators and players. However, it focused exclusively on land-based gambling.

Then, in 2002, the "Lotteries Act" was amended to allow online gambling, which at the time was experiencing an upward trend with the development of internet technology. The amendment eventually granted Svenska Spel (a state-controlled body) a complete monopoly on online gambling operations in the territory.

The monopolistic nature of land-based gambling in the country has existed since time immemorial. All four gambling venues and casino ships available to players were state property, and this state monopoly extended to online gambling until finally the Swedish Gambling Act was passed.

Provisions of the Gambling Act

The Act is accompanied by numerous bylaws governing specific products such as state lotteries, slot machines, commercial betting, etc. D. Some of the important provisions covered by the Act include:

The age permitted to gamble (18 for online gambling and 21 for land-based casinos)
The cost of acquiring a licence (between SEK 300,000 and SEK 700,000)
Taxation of commercial gambling operators (18%)
Six different types of licences are available
Three of the six license types are open to private and international organisations that meet the criteria, which was one of the main motivations for promoting the law. The EU has since condemned the Swedish government's monopoly on gambling because it violates international trade agreements entered into by the organisation. The Gambling Act is a step in line with these fundamental principles.

Another important aim of the law is to make the gambling industry in Sweden safer for players by removing cheaters from the market. It also increases player protection by obliging licensed online casinos to apply adequate security measures, check the liability of their games and more.

Too many restrictions.

As a prohibition law, any provisions not specified in the Act are strictly prohibited. And the framework allows the legislature to further restrict gambling products if necessary.

With so many restrictions, the number of operators that are actually inspected by the Gambling Authority (Spelinspektionen) is very low.

Swedes are not happy about this either, as casino without swedish license with Tustly is only allowed to offer a one-time welcome bonus, not to mention lower transaction limits. That's why players keep looking for offshore sites where they get higher limits, welcome packages, daily specials, loyalty rewards and other offers that have almost become the standard for online casinos.

However, joining a casino without a Swedish licence has its drawbacks. Players are not legally protected and there are no security guarantees. Nevertheless, it seems that the pros outweigh the cons for most Swedish players, who now prefer to play at online casinos without a Swedish licence.

Current state of affairs

As more proposals are made to include additional restrictions in the Act, the situation is not entirely stable. According to a news report from the European Gambling and Betting Association (EBGA), these ongoing regulatory changes threaten the success of the Swedish online gambling market

Translated with (free version)
The law may seem to do more harm than good, and there are many objections from casino operators with legal licences in other jurisdictions seeking to enter the Swedish market. However, time will tell.