BOS urges Swedish government to remove Gambling Act ‘loophole’
The Swedish gambling trade association, BOS, has formally addressed the Ministry of Finance, advocating for the elimination of a significant “loophole” within the Gambling Act. This loophole currently permits unlicensed operators to accept Swedish players as long as they do so in a language other than Swedish and utilize currencies outside the Swedish krona (SEK).
BOS has articulated that the current legislation strictly prohibits unlicensed operators from engaging in gambling activities targeting Swedish consumers only when marketed in Swedish or facilitating transactions in SEK. This regulatory gap is fostering a notable increase in the black market and obstructing the government’s aspiration of achieving a channelization rate of 90% within the licensed market.
According to the association’s letter: “Unlicensed gambling entities globally are allowed to offer services to Swedish customers as long as the engagement is conducted in a foreign language and currency. Considering that a significant portion of the Swedish population is proficient in English and understands widely-used foreign currencies like the euro, this loophole represents a clear problem.”
“Consequently, the government lacks a robust mechanism to restrict Swedish gambling consumers from exercising their choice in patronizing unlicensed operators,” it added.
Proposed Amendments to the Gambling Act
BOS is now strongly advocating for an amendment to the Gambling Act that would make it illegal for any operator to accept Swedish players without the necessary licensing. The association believes this regulatory enhancement would facilitate a comprehensive strategy to combat illegal gambling websites operating within Sweden.
Repeated attempts to address this matter with both the current and former governments have yielded no progress. The letter expressed a clear desire for legislative change: “We urge the government to expand the Gambling Act’s framework to criminalize the passive acceptance of Swedish gambling consumers.”
Gustaf Hoffstedt, General Secretary of BOS, emphasized the urgency of this matter, highlighting that nearly 25% of all gambling activities in Sweden are currently conducted through unlicensed operators, which is alarming, especially considering the lack of consumer protection in the black market.
“To successfully mitigate this segment of the gambling market, it is essential that the Gambling Act be revised to criminalize all forms of unlicensed gambling,” Hoffstedt asserted.
Channelization Rates: A Persistent Challenge
BOS contends that the proposed modifications could significantly enhance the country’s channelization rates. Recent data from ATG, the Swedish horseracing monopoly, underscores this assertion: traffic to unlicensed gambling websites has surged tenfold since 2019.
As reported in December, Sweden’s channelization rate is estimated to be between 70% and 82% for Q3, which remains below Spelinspektionen’s October projection of 86%. This figure, while marginally improved from ATG’s previous Q2 projection of 68% to 81%, indicates that the channelization rate may be stabilizing.
Enhancing regulatory measures to address the loopholes in the Gambling Act will not only fortify consumer protection but also help to align the gambling market more closely with government oversight and standards. As the industry continues to evolve, it is imperative for stakeholders to advocate for policies that ensure a safe, regulated, and competitive gambling environment in Sweden.
