European Gaming Lawyer magazine EGL_Spring2017_opt - Page 21

Th e proposed licensing regime covers a broad spectrum of gambling products: online casino, online betting, online poker and online bingo. Land based sports betting and land based horse-race betting will also be included in the licensing regime. Lotteries and land based slot machines will remain monopolized. Th ere will be a 18% tax on the net gambling revenue. No payout ceiling on wins is recommended. A license will allow private online gambling companies, Svenska Spel’s and ATG to operate on the competitive section of the market. It is proposed that ATG no longer have a monopoly on horse race betting. Th is will open up for competition from other operators that off er horse race betting. Like other gambling companies, ATG will have access to the competitive gambling sector on the same conditions and become a licensee like others. Svenska Spel’s exclusive rights will cover token gaming machines and land based casinos in designated premises – Casino Cosmopol. Th e company will also have to continue to compete with the public interest associations with respect to online and land based lotteries. According to the Inquiry’s proposal, the future competitive section (Svenska Spel K) will get licenses that will cover online and land based sports betting, online casino, online poker and online bingo. Th e Inquiry’s proposal will include horse race betting in the licensing system and in the competitive section. Th is means that ATG will become an operator like any other private gambling operator. Th ese gambling companies may enter into agreements with the harness and horse racing organizations that own the courses and other infrastructure. It is proposed that the Government withdraw from its involvement in ATG and equestrian sport in the form it has hitherto had. Th e Inquiry proposes a tax rate of 18 per cent on gambling in the competitive sector. Th e tax rate is to be calculated on net gambling revenue, i.e. the company’s profi t aft er paid winnings. Th e Inquiry hopes that through a tax rate of 18 per cent and a regulation that does not entail an excessive administrative burden, at least 90 per cent of the competitive market will be channeled into regulation. Th e Inquiry proposes that in principle all gambling companies pay a license and supervision fee. Th e fees are based on the companies’ turnover and the number of games involved. Th e license fees in the competitive area vary from SEK 60,000 to SEK 700,000 and the annual supervision fees in the same area are between SEK 30,000 and SEK 1 million. All gains from wins that stem from unlicensed operators will be taxed as income. Th e Inquiry thinks that this will deter consumers to gamble on unlicensed sites. An eff ective system of sanctions is a prerequisite for the sought channeling eff ect. A number of criminal off ences are introduced. A party that intentionally or through gross negligence provides (in Sweden), arranges (in Sweden) or otherwise facilitates (in Sweden) participation in gambling for a person resident or permanently staying here without a license when this is required under the Gambling Act shall be sentenced for unlawful gambling activities to a fi ne or imprisonment of at most two years. If the crime is gross, the penalty is imprisonment of at least six months and at most six years. For the promotion of illegal gambling, i.e. a breach of the promotion ban, the Inquiry believes that the range of punishment should be signifi cantly raised in relation to what is applicable today. It is proposed that the range of punishment be the same as for the principal off ence, i.e. from fi nes or imprisonment of at most two years or, if the crime is gross, imprisonment of at least six months and at most six years. If a gambling company that has a European Gaming Lawyer | Spring Issue | 2017 | 21