Swedish Audit Office Launches Probe into Spelinspektionen’s Market Supervision

In a bid to scrutinize the effectiveness of market regulation in Sweden’s gambling landscape, the Swedish National Audit Office has set its sights on Spelinspektionen, the Swedish Gambling Authority. As concerns rise over the surge in unlicensed gambling sites and the financial impact of the gambling sector, this comprehensive audit seeks answers. Dive into the unfolding investigation, which examines whether Spelinspektionen is up to the task of safeguarding consumers, while navigating the challenges posed by a rapidly evolving market.

Sweden’s National Audit Office has taken a decisive step in addressing the ever-evolving landscape of the country’s gambling industry. In a move that reverberates through the corridors of regulatory oversight, the audit office has initiated an in-depth investigation into the performance and efficacy of Spelinspektionen, better known as the Swedish Gambling Authority (SGA).

The primary focus of this exhaustive audit is to assess how Spelinspektionen has adapted to the intricacies and challenges introduced by the re-regulation of Sweden’s gambling market in 2019. The re-regulation aimed to enhance the channelization of gambling activities into regulated channels, promoting transparency and responsible gaming. The results of this comprehensive review are slated for publication in September 2024, promising a critical assessment of the authority’s role and its ability to fulfill its obligations effectively.

This audit comes hot on the heels of alarming revelations surrounding the Swedish gambling landscape. Recent research indicates a startling ten-fold increase in visitor traffic to unlicensed gambling websites since 2019. According to data provided by operator ATG, channelization rates for regulated online gambling during Q3 fluctuated between 70% and 82%. These figures raise concerns about the market’s efficacy in steering players towards legitimate and regulated options.

Furthermore, the audit office has put forth figures that suggest the Swedish gambling market may be exerting a negative economic impact. In stark contrast to the market’s stated goals, which include fostering a “healthy and safe gambling market under public control,” the report indicates that the sector contributes SEK6 billion in tax revenue while the societal costs associated with problem gambling amount to a staggering SEK9 billion.

The audit will delve into the current state of affairs, questioning whether the re-regulated system, overseen by Spelinspektionen, has effectively regained control and fulfilled its mandate of safeguarding consumers. The task is not without its challenges, as the legislative changes brought about by the re-regulation have introduced a level of uncertainty due to the relative novelty of the regulatory framework.

In the midst of these developments, recent figures reveal that the gross gaming revenue (GGR) from Swedish license-holders has remained relatively stable at SEK6.7 billion (£498.8 million/€573.8 million/$611.1 million) compared to the previous quarter. Notably, land-based casinos experienced a substantial 30.5% year-on-year increase in turnover, while non-profit lotteries in Sweden saw an 8.26% dip in GGR during Q3.

The findings indicate a delicate balance in the Swedish gambling market, reflecting both continuity and subtle shifts in consumer preferences. Spelinspektionen’s Director-General, Camilla Rosenberg, has welcomed proposed changes to the Swedish Gambling Act aimed at enhancing consumer protections. These changes include the requirement for operators to obtain written approval for telephone-based gaming from customers and the right to access customer-provided financial and health-related personal data.

However, amidst these regulatory discussions, Spelinspektionen has also taken a firm stance, recently advocating for a ban on gambling via credit card transactions. While a government investigation concluded against the ban, the authority has reiterated its legal position, highlighting the importance of upholding a duty of care for players.

As the Swedish National Audit Office delves into the depths of Spelinspektionen’s regulatory endeavors, the gambling industry in Sweden stands at a pivotal juncture. The results of this audit promise to shed light on the effectiveness of current oversight mechanisms and chart a course for the future of responsible and transparent gaming in the country.