Swedish Committee behind B2B Licensing Decision
Sweden's online gambling regulator, Spelinspektionen, in affiliation with the Culture Committee and the Riksdag - the country's highest decision-making authority, has agreed that more needs to be done to protect consumers in the online gambling market.
At the top of the agenda appears to be an agreement to license B2B companies, such as software providers, in addition to a ban on all offerings in the industry that are considered to be illegal.
Meanwhile, marketing moderation in the industry has been opposed, with this being thought to be "too early" to discuss this.
Strong Case for B2B Regulation
Ultimately, the Riksdag has agreed that all unlicensed entities in the Swedish online gambling market should be banned, which has paved the way for the suggestion that software providers are likely to be granted licenses.
This suggestion has been a major talking point this year in the country among legislators and power brokers, and this could reach an overall conclusion in the coming weeks.
July 2023 is the date that has been earmarked for B2B licenses to come into force, with these set to last up to five years and cost SEK 5,000 per year and no more than a maximum of 10 percent of a software provider's turnover, starting the following fiscal year.
The committee initially notes that there is a need to modernize the gambling regulations in light of, among other things, the rapid digital development and changed range of game forms.
At the same time that gambling legislation is adapted to new circumstances in the gambling market, the legislation must be legal and clear. The consumer perspective must be clear. A starting point for the regulation is also that gambling should not increase.
The Committee, therefore, welcomes the bill's proposal that a license requirement for software is introduced into the Gaming Act with the aim of excluding unlicensed gaming. It is important to prevent unlicensed firms from operating in the Swedish market.
Sweden's Online Gambling Scene Set for Shake-Up
The last year has been focused on taking the industry in Sweden to the next level and fully regulating the market. The latest events have seen MPs vote on 17 different amendments to the current legislation, with the bill detailing changes in the overall gambling landscape.
However, the proposal to change marketing activities has been rejected, with the Committee suggesting that this runs the risk of "eroding the regulated market" due to the care that these operators already take from a consumer protection perspective.
A statement read: "In addition, the Committee considers it too early to implement changes in the field of marketing as the practice has just been established."
"The Committee believes that the more detailed meaning of the moderation requirement should continue to be developed through practice and suggests that the Riksdag reject the bill's proposal in this part."
What Will This Mean for the Online Gambling Landscape in Sweden?
It has been the case over the last couple of years that unlicensed casino providers outperformed those that had a license, particularly operators, with bonuses being key to the overall attraction of new customers.
As a result, this latest revelation will only be good news for a market that is effectively in transition as it aims to become a legitimate online gambling stronghold internally. On a wider scale, Sweden has long been thought of as a country where the industry is thriving, helped by the likes of operator conglomerate Kindred Group and software provider behemoth, Evolution.
Also, a technology hub - especially Stockholm, the Swedish capital plays home to many suppliers to the online gambling industry, and introducing licensing for these will only be a good thing.
The market certainly has the potential to become one of the strongest in Europe, especially when you consider that it has one of the best-performing GDPs (Gross Domestic Product) ratings in the world, in addition to high levels of disposable income.