Sweden, which is in Scandinavia and one of the five Nordic countries, Sweden is separated from Denmark, Germany, Poland, Russia , Lithuania , Latvia and Estonia by the sea. is famous for its well-regulated gambling industry. Sweden has a strong basis for both ground-based and online gambling activities. This article is a complete guide Betting Sites in Sweden and gambling law in Sweden, all about its regulatory agencies, licenses and fees for gambling as well as the taxes on it.
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Swedish Gambling Legislation Classification
The gambling industry in Sweden is regulated by the Swedish Gambling Authority, called Spelinspektionen locally. This is a state-owned body which guarantees that the gambling activities in this country are legal, compliant and safe. It also aims at safeguarding the consumers, keeping the transparency and reducing the negative consequences of gambling.
Key Historical Legislation
- 1994 Lotteries Act: This Act gave the definition of lotteries and included various forms like guessing, betting, bingo games, slots machines , roulette games,and dice and card games. The lotteries were limited to be organized by non-profits, horse racing associations or the Swedish Lotto. Under the Act, the Gambling Authority is in charge of giving out permits for lotteries and granting Svenska Spel to be the only bookmaker for sports betting offers while ATG will be given as a single horse race betting agent.
- 1999 Casinos Act: This Act was the one that proved the need for a license to engage in casino games, thus it took care of obligations to prevent money laundering and terrorist financing. It also restricted the number of land-based casinos to six. The regulations comprised the keeping of records, supervision by the authorities, age limits and fee structures.
- 2002 Amendment: The amendment to the 1994 Lotteries Act led to the changes in its provisions which allowed non-profits, Svenska Spel and ATG to spread their gaming forms through the internet. The Gambling Authority regulates the specific requirements for online gambling forms like electronic lotteries, casino gambling and betting.
- 1 January 2019: The re-regulation of the Swedish gambling market. The Swedish Gambling Act came into existence, and it immediately dealt with the problems of the gambling market.
- 1 January 2021: The new rules for the regulation of gambling were implemented, and among other things Esports were also regulated. These rules do not allow bets on sports matches which involve rule violations and individual results of players under the age of 18.
- 1 July 2023: The Act was revised, with the B2B licenses for anyone manufacturing gambling software or other technical services for Swedish B2C license holders becoming mandatory.
Regulatory Agencies of Betting Sites in Sweden
- 1. Swedish Gambling Authority (Spelinspektionen): This body is the guarantor of legality, conformity and safety in the Swedish gambling market. Besides, it cuts down illegal gambling activities and suggests ways to make the regulations even stricter.
- 2. Swedish Consumer Agency: He is in charge of the marketing supervision related to gambling services.
- 3. Swedish Tax Agency: He/she is in charge of the payment of related taxes.
Kinds of Licenses and Fees
Licenses can be granted for the period of five years, although shorter licenses may depend on some factors like financial equity or regulatory violation in other jurisdictions.
License Types:
1. Casino Gaming License: The state-owned companies should be allowed to offer casino games, slot machines, certain lotteries and online bingo.
2. Commercial Online Gambling License: Deals with online casino games, online bingo and computer-simulated gambling machines.
3. Commercial Land-Based and Online Betting License: This category comprises of sports betting, bets on the future events and lottery outcomes.
4. Land-Based Commercial Gambling License: The games that are not in the casino and other related things like gambling machines which goods can be found in licensed facilities or card game tournaments.
Fees:
- Application Fee: It depends on the kind of license and the level of gambling operation.
- Annual License Fee: The revenue is the reason for gambling activities.
Gambling Law and Regulation in Sweden – 5 Things to Know
Gambling Taxes of Betting Sites in Sweden
The gambling tax rate for the competitive sector is 18% of GGR. The gambling tax is paid on the income obtained during a one-month taxation period.
Tax Rates:
- General Gambling Tax: 18% of the variation in stakes (bets) and payouts (money withdrawn, amount won).
- Non-Profit Gambling Tax: 0% for public purpose activities.
Gambling is VAT-exempt. Players are not levied on their winnings from the domestic licensed establishments. Sports betting winnings are not taxed no matter from where they come if within the EU.
Prohibited and Permitted Bets
Permitted Bets:
- Casino Gaming: Encompasses slots, roulette, blackjack and the rest of the table games.
- Poker and Bingo: Controlled by the Swedish Gambling Authority.
- Betting: Consists of sports and horse race betting.
- Fantasy Betting: Permitted unless based on the skill.
Prohibited Bets:
- Bets on Rule Violations: Not allowed in sports events.
- Bets on Individual Results: Banned for players under the age of 18.
- Certain Esports Bets: The rules are to be followed.
Major Events in Swedish Gambling Legislation
- 1994: Lotteries Act enacted.
- 1999: Casinos Act enacted.
- 2002: The amendment to the Lotteries Act.
- 1 January 2019: Re-reregulation of the gambling market.
- 2020: Collaboration with Dutch partners.
- 1 January 2021: The new gambling rules, among which Esports regulation.
- 1 July 2023: The Gambling Act amendments, such as the compulsory B2B licenses.
The knowledge of the Swedish legal environment and regulations will help businesses to find their way around the complicated gambling market. For those who are willing to go into the betting sites in Sweden or come up with their own formulas for sports betting, it is of great importance that they keep themselves updated on the latest legislative changes and regulatory requirements.