Swedish Gambling Authority
The Swedish Gambling Authority is the Swedish government agency responsible for issuing gambling licenses and general regulation of the gambling entertainment industry in the country. The main task of this commission is to control the quality of services provided in gambling establishments, as well as guarantee each player the safety and honesty of financial transactions. Representatives of the Swedish Gambling Authority regularly conduct technical reviews of the hardware and software of all licensees, as well as potential applicants.
The legislative framework
It is impossible to determine the unequivocal opinion of the Swedish government authorities towards the gambling entertainment industry. For many years, the gambling business was either subject to legalization, or again was banned. But even such temporary difficulties could not alienate online casino operators and other businessmen of this industry from Sweden. Sweden is an ideal place for running a gambling business in Europe, as loyal taxation conditions and a simplified legislative system have been created here.
To date, all areas of gambling entertainment are legalized in Sweden. The Swedish Gambling Authority can issue a license to operate online and land-based casinos, betting shops, sports betting shops, lotteries and other gambling establishments. The legalization process was very long and painstaking, so the regulation of the gambling entertainment industry here is thought out to the smallest detail.
The legal framework in the gambling business industry is based on two laws adopted in 2018: “On Gambling Tax” and “On Gambling”. Already in 2019, these legislative acts came into force. They helped to confirm the legal protection of players and regulate the gambling industry.
Prior to the adoption of these legal documents, Sweden had a state monopoly on gambling entertainment. Only one operator, Svenska Spel, could provide gambling services in Sweden. For many years, local government authorities have been working to ensure that the gambling business market becomes open and competitive, as they saw this industry as a source of stable revenues to the state budget.
The adoption of the above-mentioned legislative acts made significant changes to the procedure for issuing gambling licenses. Now only legalized operators can provide gambling services in Sweden. Any illegal activity entails legal liability.
Types of licenses Swedish Gambling Authority
To date, the Swedish Gambling Authority issues several types of licenses. This is due to the fact that a separate work permit is intended for various areas of gambling activity.
Thanks to such an individual approach to each case, this regulatory body manages to control the gambling industry as effectively as possible, as well as apply clear and precise requirements in relation to each licensee and its type of activity. Accordingly, each type of license implies separate conditions for doing business, tax policy and payment of license fees. Below are the features of each type of license issued by the Swedish Gambling Authority in more detail:
- License for commercial online games and betting. The issuance of such a work permit will cost the potential licensee 400,000 SEK. In comparison, the cost of a license for both activities is 700,000 SEK.
- Lottery license. Public lotteries and lotteries in public places are subject to separate licensing. An operator can apply for a third class license if the profit from ticket sales does not exceed SEK 5,000,000. Registration of such a license will cost 60,000 Swedish kronor. If the operator sells tickets in the amount of 5 to 15 million Swedish kronor, then he will need to issue a second class license. The cost of such a license is 75,000 SEK. Operators earning more than 15 million lottery tickets need a first class license. The price of such a license is also doubled to 150,000 SEK. It is also worth noting that if the operator wants to upgrade his license class, he will need to pay an additional 40,000 SEK.
- Bingo licenses. The Swedish Gambling Authority also issues bingo licenses. This gambling entertainment is very popular in the territory of this state. Such a permit will cost the potential licensee 30,000 SEK. If an operator needs to renew, renew or change their license, they will only have to pay an extra SEK 5,000.
- Horse racing license. Horse racing is one of the most popular sports in Sweden. Bookmakers accept millions of bets on this exciting game. In order to legally accept bets on horse racing, the operator will have to pay 3,500 SEK. The renewal or restoration of such a license will also cost 3,500 SEK.
- License for slot machines and casinos. The license for slot machines is very inexpensive. Installation of slot machines will cost 3,600 kroons, while obtaining a license will cost only 2,800 kroons. But, despite the rather low cost, this area in Sweden is developing at a rapid pace and brings a good income.
- License for land-based casinos. Such activity qualifies as highly liquid. Therefore, several types of licenses are presented for this area. For example, a license for commercial casinos will cost 3600 crowns. And gambling halls are subject to a different type of licensing, the registration of which will cost 70,000 SEK. An additional fee of 15,000 SEK is required to upgrade or restore a license.
- License for card tournaments. Operators that organize card games in the form of tournaments can apply for a license of 3 types. The permit fee for a maximum of 10 card tournaments will cost 4,000 SEK. If the operator holds more than 10 card tournaments, he will need to pay 15,000 SEK. But a license for holding one tournament, the number of participants of which does not exceed 48 people, will cost 25,000 SEK.
For each variety, a license is issued, which indicates the main activity:
- National lotteries – national lottery;
- Restaurant casinos – land-based casinos;
- Amusement games – slots;
- Token machines – exchange rates;
- Other licenses – other licenses;
- Type approval – software certificates.
The lottery, according to Swedish law, is not guessing numbers. The category includes entertainment with a random chance of winning: traditional, slot machines, bingo, roulette, cards, craps, bets.
Features of jurisdiction
Sweden has a number of laws that regulate and control the gambling industry. These legal acts include: the Law “On Lotteries” (1994: 1000), “On Certain Slot Machines” (1982: 636) and “On Casinos” (1999: 355).
In 2016, the resolution “The development of the gambling market in Sweden and internationally” was adopted. It is on the basis of this document that the activities of the Swedish Gambling Authority are based.
The main functions of this state body include:
- Minimizing the risk of promoting criminal acts in the gambling business;
- Not allowing persons under the age of majority to engage in gambling activities;
- Promoting the principles of fair and responsible gaming;
- Guaranteeing the full payment of winnings to players;
- Anti-money laundering;
- Processing and consideration of applications of potential licensees;
- Informing all license holders about the specifics of the Commission’s activities;
- Assistance to licensees in case of problems with the operation of the software;
- Continuous control and monitoring of the quality of services provided;
- Regular testing of software licensees for compliance with international standards.
In its activities, the Swedish Gambling Authority is subordinate to the Ministry of Finance. The composition of this Commission is determined by the Government of Sweden. The following main tasks were set for this regulatory body:
- Guaranteeing all users fair payouts and transparency of game results;
- Regulation and ensuring a balanced activity in the field of gambling entertainment;
- Minimizing the likelihood of socially harmful effects from gambling (ludomania, depression, psychological disorders);
- Eradication of illegal gambling establishments and online platforms on the territory of the state;
- Informing the government about trends and developments in the international and domestic gambling market.
The main task of the Swedish Gambling Authority is to ensure that the interests of each player are protected. To do this, the committee does the following:
- Roots out illegal gambling establishments;
- Works to reduce the number of illegal online casinos;
- Processes and analyzes received player complaints;
- When illegal gambling activity is detected, it signals law enforcement agencies and the prosecutor’s office;
- Provides state authorities with all information and statistical data regarding the gambling entertainment industry;
- Contributes to the creation and ratification of new legal acts to regulate the gambling business in Sweden.
The Swedish Gambling Authority’s website contains information freely available that illegal gambling is a major source of sponsorship for crime and terrorism. In 2015, a special commission of investigation was created to combat criminal activity. This body should regulate the gaming entertainment industry, ensure that all consumer rights are respected, and guarantee every player a high level of protection and safety.
Any operators of online casinos and other gambling establishments that operate in Sweden are illegal. Such criminal acts may be punished in accordance with the provisions of the criminal and administrative codes.
The authority of the commission
Online casino operators licensed by the Swedish Gambling Authority can legally operate in this jurisdiction. But the presence of such a license does not allow you to conduct gambling business on the territory of other states. To do this, you will need to obtain additional permission from the chosen jurisdiction.
The following main advantages of licenses from the Swedish Gambling Authority can be distinguished:
- Relatively low cost of obtaining a permit, as well as moderate license fees;
- No need to pay corporate tax;
- Fairly simple conditions for obtaining a license;
- Possibility of cooperation with all popular payment systems;
- Opportunity to operate in all markets other than the US;
- Supporting the principles of responsible and fair gaming;
- Trust and loyalty of players around the world.
All license holders from the Swedish Gambling Authority are required to pay a gambling tax, which is 18% of the operator’s annual profit. Also, depending on the amount of profit, an additional fee will be charged:
- with profit up to 10,000,000 kroons – 30,000 SEK;
- with profit up to 20,000,000 kroons – 60,000 SEK;
- with a profit of up to 50,000,000 kroons – 120,000 SEK;
- with profit up to 100,000,000 kroons – 240,000 SEK;
- with profit up to 200,000,000 kroons – 300,000 SEK;
- with a profit of up to 500,000,000 kroons – 400,000 SEK;
- with a profit of 500,000,000 kroons – 500,000 SEK.
Players pay a payment system commission, without additional bets.
Taxes from lotteries go mainly to national projects, equestrian sports and government organizations, that is, they bring public benefit. Or they are sent to non-profit associations: to sports events for children and youth.
Procedure for obtaining a license
You can get permission for:
- Traditional lotteries and bingo games. They are issued mainly to Swedish legal entities – non-profit associations;
- Restaurant casinos and slot machines of some types (issued to private operators);
- Government online entertainment: ATG and Svenska Spel permits for various forms of lotteries.
Each certificate is valid for up to 5 years.
This page features online casinos licensed by Swedish Gambling Authority, so you can be sure that they are safe and secure.