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The monopoly on gambling in Sweden Gambling, both in brick and mortar venues and online, is legal in Sweden.
The legislation in Sweden with respect to gambling The current legislation which favors monopoly is not in correspondence with the competition rules which are abided by in the EU.
The popularity of EU based online casinos for Swedish players Among Swedish punters, EU based online casinos are highly popular. The reasons why Swedes are attracted to foreign online gambling sites based in EU One reason for that is that Swedish is one of the languages players can use to play online games there.
Why competition among foreign online casino operators is beneficial for Swedish punters Competition urges online casinos to impress Swedes looking for gaming entertainment online.
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Swedes tend to hold quite progressive views on social issues , and therefore are particularly open to gambling. This has contributed to what is a very free gambling culture with less fraud.
This company, Svenska Spel, was the only company allowed to operate land-based and online gambling. Then, after years of mounting pressure from the EU, Sweden adapted its laws to allow foreign operators to accept Swedish customers.
The Swedish Gambling Act of came into full effect when approved in January , and has since paved the way for a broader competitive gaming industry.
However, in order for foreign online casinos to be legal in Sweden, operators must first be awarded a license from Spelinspektion , which is now in control of regulating the market.
In order for a foreign casino to be approved for a licence from the Spelinspektion, the operator must meet a number of criteria as outlined in the Gambling Act.
For one, they must prove that they have the knowledge, organization and experience to run the organization. Operators must prove that they can operate within the law and will be under review.
The casino must prove that its systems have been certified fair and safe by an independent testing agency, with games and software also certified.
Once the strict criteria have been met and a license has been approved, the licensee will be given the right to provide both land-based and online betting.
Luckily for Swedish gamblers, the burden of taxation rests on operators. That means that no matter how much you win, players do not need to pay gambling taxes.
For local and foreign operators, there is a tiered taxation and annual fee system applied to gambling revenues.
Taxes do not need to be paid for revenues generated for public interest purposes, such as charities or fundraising for public projects.
Otherwise, operators will need to pay taxes on gross gaming revenues GGR. All operators must pay a base tax rate of 18 percent on GGR.
An annual supervisory fee will also need to be paid depending on GGR. Winnings through state-run gambling activities are not taxed, while online gambling winnings are taxed.
Sweden is not the only country that does not tax players on their gambling winnings. Neighboring Finland, which still runs a gambling monopoly system also does not charge gamblers taxes on their winnings.
Likewise, operators must pay taxes on their gross gaming revenues. The United Kingdom follows a similar model.
Conversely, while it does not charge players taxes for gambling winnings made through its state-run system, neighbouring Norway taxes online winnings on foreign operators.
Previously, the law did not allow for gambling at foreign online casinos, but this was disregarded by players to the extent that foreign operators held a 30 percent market share of Swedish online gaming.
The Act mandated the creation of Spelinspektion , which was previously called the Lotteriinspektionen, or Lottery Inspectorate. A licence for commercial online gambling may be granted to provide casino games, online bingo and computer-simulated gambling machines.
As Sweden is still in the early days of its new Gambling Act, there are small tweaks expected to be made over the next several years. At the moment, most of the talk seems to be focused on placing limits on gambling to reduce the potential of problem gambling growing.
Currently, there are calls to enforce a weekly deposit cap to prevent players from spending too much money. Some are also calling for time limits on when online gambling is available as well as stricter rules on gambling advertising.
There is still much debate around these topics, so nothing is certain at the moment. Both countries have their own respected gambling authorities that license local and foreign operators, both do not tax gamblers on their winnings, and both have large online betting markets.
While the new laws are beneficial for Swedish players, early figures that gauged the new laws found that the Gambling Act may have had a negative effect on the Swedish gaming market.
During the third quarter of , the return for licensed online gaming operators was SEK 3. The statistics also pointed to a drop in visitor traffic to Swedish-licensed sites in compared to previous years, with reporting a minor growth.
Despite this, industry insiders believe that this is totally normal for a newly regulated market, and that the new laws will guarantee a more stable and sustainable industry.
In , the Swedish gambling market reported gross gaming revenues of SEK Of these revenues, roughly 57 percent of revenues were generated through online gambling.
A recent study commissioned by Spelinspektione revealed that 60 percent of Swedish adults said they had gambled in This marked a 6 percent decrease since the previous year, and a 16 percent decrease since the study was first started.
Retail is still an important part of the market, with 48 percent of gamblers playing at betting shops.
Of all the gambling options, the lottery is the most popular game. Around 75 percent of surveyed gamblers admitted to playing lottery in the past year, with 50 percent betting on other draw games such as Keno and 38 percent betting on horse racing.
Only 21 percent had bet on sports and only 5 percent at casinos. These statistics point to some very interesting trends in the Swedish gambling market.
For one, while the number of gamblers seems to be shrinking at a steady rate, revenues are still climbing. This indicates that those that are gambling are betting more money , more frequently.
The large market share of online gambling also indicates that offering appealing casino products is becoming increasingly more important to lure Swedish players to desktop and mobile casinos.
There are four land-based casinos in Sweden. The casinos offer full-scale casino gambling, though do not offer accommodations like other casino resorts.
In addition to operating casinos, Svenska Spel has created a number of games that are available to play within its casinos.