Part 1: The new regulations
and crucially, with the example
of Denmark’s regulated market
just across the Öresund strait, the
Swedish government hit upon one
of the lower gross gaming revenue
(GGR) tax rates in regulated Europe
at just 18%.
In April 2017, a long-awaited
report from the Swedish
government was published,
opening the way for the regulation
of the market with the hope
that, with tax at the 18% level
and without “an excessive
administrative burden”, they could
achieve 90% channelisation of
Swedish igaming customers into
the licensed system.
Lennart Käll, who in July this
year left the post of chief executive
at Svenska Spel, said at the time:
“All and all we think the proposal
is positive for both Svenska Spel
and for the gambling industry.
With equal rules for everybody
we look forward to introducing
new gambling categories, such as
online casino, where we currently
have no offer.”
Happy with the result
“We are now certain to see
regulated gaming commence in
Sweden on the first of January
2019,” said Martin Britton, managing
director at GLI Europe.
“The process has been well
planned, and the Swedish Gaming
Authority has met every landmark
along the way. The technical
regulations and advice on the
accreditation of bodies have
already been issued, and with 22
licence applications received on 1
August, the process is in full swing.”
The private operators have
also expressed cautious words of
welcome for the new regime, albeit
with a tinge of dissatisfaction
about the move taking so long.
This was summed up by Gustaf
Hoffstedt, secretary general of
the Swedish Trade Association
for Online Gambling (BOS), when
speaking to iGaming Business
earlier in 2018. “We are satisfied
with the fact that the government
of Sweden – at least 10 years
later than necessary – finally has
presented a draft bill in favour of a
licensing system,” he said.
Britton believes the Swedish
authorities went about the
process the right way and this has
helped clear the way towards a
workable regulated market. “Firstly,
governments need the political
will to implement change and a
clear vision of what they want to
achieve,” he says.
“That is then followed up with the
formation of a gaming authority,
staffed by experienced people
who are given a clear brief and
empowered to carry the process
forward without constant reference
to the political process.
“It seems Sweden ticked all
these boxes and the result is the
expected on-schedule opening of
the market.”
Kristoffer Lindström, equity
research and ratings at Stockholm-
based analysts Redeye, agrees
that the market should be happy
with how the regulations have
panned out. “I believe that the
tax rate of 18% is low enough for
the operators to have a viable
business. I talk to most of the
public and some private operators
in Sweden, and none has ever
stated that they would not apply
for a licence,” he says.
“I do believe that the government
is relatively confident that they will
capture most of the grey market, as
the proposed re-regulation is well
balanced.”
If they enforce (the first-time-player-only
bonus rule) you will have players opening
multiple accounts, which is exactly what the
government doesn’t want
Claus Jansson, Better Collective
6
Sweden: The transition to regulation in one of Europe’s most advanced digital markets