European Gaming Lawyer magazine EGL_Spring2017_opt | Page 20

The Re-Regulation Of
The Swedish Gambling Monopoly
by Dr. Ola Wiklund
T
he Present Market
One of the most prevailing Swedish
myths is that the public Swedish
gambling monopoly is designed to
limit gambling and thereby prevent
detrimental public health eff ects. Nowadays, there
is an overwhelming consensus that, during the last
20 years or so, there has never been a true public
ambition to limit gambling. Back in the days, the
marketing budget of the state-controlled gaming
services off ered by Svenska Spel and ATG reached
new heights every year and the range of products
off ered grew broader and broader. Th is market
strategy still prevails. Th e Government policy came
to create a culture of gambling. Th is culture together
with a world class level of internet penetration (well
over 90 percent), a fl ourishing climate for tech
innovations, access to venture capital and a lenient
stock market, were to set strong incentives for the
establishment of highly successful private gambling
operators such as Betsson, Unibet and many others,
all established abroad targeting Swedish customers.
Th ese companies are founded, run and owned by
Swedish privates and corporations. Today, Sweden is
one of the most competitive online gambling markets
in the world.
Gambling companies licensed or authorized
elsewhere within the EU can more or less freely
pursue an Internet-based gambling business on the
Swedish market. Swedish authorities acknowledge
that Swedish residents are unimpeded to participate in
foreign gambling and that online gambling operators
duly licensed or authorized in another EU member
state are allowed to off er such services.
20 | European Gaming Lawyer | Spring Issue | 2017
Moreover, the Swedish Government has
expressed that the Lotteries Act does not have
exterritorial application. Hence, Swedish
authorities lack jurisdiction to enforce the
Lotteries Act to undertakings and individuals
outside of Sweden.
Gambling services can consequently be off ered
cross border to Swedish customers without violating
Swedish law. Also, the room for maneuver for
marketing and promoting activities that target the
Swedish market is extensive. Marketing through
cross border-media such as television commercials
and web marketing is legal. Given the inherent
limitations of the system for administrative and
criminal sanctions, sponsoring of sports events and
other commercial marketing co-operations could be
carried out without risk of sanctions, if structured
properly. Th e only remains of the public monopoly
is the marginalized and circumvented marketing
prohibition. Hence, globalization, market practice,
internet penetration and political passivity have
made the current legal regime obsolete and created
a fairly liberal market for online gaming in Sweden.
However, this situation might be over. For the
third time the Swedish government have taken the
initiative to regulate the market.
Introduction Of Licenses
For the fi rst time in 20 years there seems to be a
broad political consensus to regulate the market by
introducing a licensing system for predominantly
online gaming. Th e Inquiry on the Re-regulation of
the Swedish gaming market (SOU 2017:30) published
its comprehensive report on March 31.