Sweden’s Gambling Act Review Gains Support from BOS

Sweden’s Gambling Act is under scrutiny as the National Audit Office has raised concerns about regulatory oversight in the industry. In response, the Swedish Trade Association for Online Gambling (BOS) has voiced strong support for a formal review of the Act, agreeing with the audit’s call for tougher regulations on unlicensed operators.

Sweden’s National Audit Office Criticizes Gambling Oversight, BOS Calls for Act Review

The Swedish Trade Association for Online Gambling (BOS) has welcomed the National Audit Office’s recent report calling for a formal review of Sweden’s Gambling Act. The report, published today, highlights significant shortcomings in regulatory oversight, specifically pointing to gaps in the supervision of unlicensed gambling operators within the country.

Key Points:

1. Lack of Regulatory Supervision: The National Audit Office criticized the current regulatory framework, citing that Sweden’s gambling regulator, Spelinspektionen, does not fully govern all unlicensed operators in the market.
2. BOS Supports the Review: The BOS has expressed its agreement with the call for a review of the licensing laws within the Gambling Act, particularly concerning unlicensed gambling operations.
3. Legal Loopholes: The current Gambling Act allows unlicensed companies offering games in English and using Euro currency to operate legally, whereas operators targeting Swedish consumers using the Swedish language and krona are considered illegal.

BOS Calls for Stricter Regulations

The BOS has long been an advocate for stricter regulatory measures to tackle the growing influence of unlicensed gambling operators. The National Audit Office’s findings echoed the BOS’s stance, as the report emphasized the need for better oversight to ensure that operators without a Swedish gambling license are prohibited from accepting Swedish consumers.

Currently, loopholes in the Gambling Act’s scope of application allow unlicensed operators to legally target the Swedish market as long as they do not specifically cater to Swedish consumers in their language or currency. This lack of comprehensive coverage leaves a substantial portion of the market unsupervised.

Gustaf Hoffstedt, Secretary General of the BOS, strongly backed the call for reform, stating:
“That today’s gambling legislation allows such extensive parts of the gambling market to operate without a license is unsustainable. We have long advocated for the expansion of the Gambling Act’s scope of application to close these loopholes. It is very welcome that the National Audit Office agrees with this reasoning in its report.”

Impact of Loopholes

Under the current legislation, unlicensed gambling operators can easily sidestep restrictions, using geographical loopholes to reach Swedish consumers. These operators often offer games in English and use foreign currencies, which exempts them from certain Swedish regulations. The BOS and the National Audit Office agree that this situation undermines the integrity of the country’s regulated market.

Gustaf Hoffstedt further added:
“By expanding the scope of the Gambling Act, it would become generally illegal for gambling companies without a Swedish license to target Swedish consumers. This would also require these companies to geoblock Sweden, effectively closing the market to unlicensed operators.”

A Broader Regulatory Approach

The BOS has been advocating for changes to Sweden’s gambling legislation for several years, and this report adds weight to its demands. In August 2024, the BOS also suggested that private companies should be allowed to run land-based casinos in Sweden, indicating their interest in further liberalizing the gambling market while strengthening regulatory controls.

The call for reform is particularly relevant as the Swedish market continues to see high demand for online gambling services. Strengthening regulations around unlicensed operators is seen as crucial to ensuring that Swedish consumers are protected from the risks associated with unregulated gambling, including problem gambling and fraudulent operators.

Good to Know

The BOS has repeatedly urged the Swedish government to consider reforms that would bring the nation’s gambling regulations in line with other European countries. In addition to tighter controls on unlicensed operators, the BOS has also recommended criminalizing unlicensed gambling to further deter operators from targeting Swedish consumers.

The BOS’s support for the National Audit Office’s call to review Sweden’s Gambling Act signals a significant step towards addressing the regulatory challenges facing the country’s gambling market. By expanding the scope of the Act and imposing stricter measures on unlicensed operators, Sweden can better protect its consumers while ensuring that its market remains fair and well-regulated. As discussions around these reforms progress, the BOS will continue to advocate for changes that benefit both the industry and the public.