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