Sweden’s unregulated gambling market grew 57% in the period between 2012-2016, figures reported by the country’s gambling regulator, Lotteriinspektionen, show.
Sweden-facing gambling operators without licenses from the local Gambling Authority generated turnover of SEK5.1 billion during the twelve months ended December 31, 2016. Here it is also important to note that in 2012, unregulated operators reported overall sales of SEK3.2 billion. Their proceeds accounted for almost a fourth of the country’s gambling market, which was worth SEK22.2 billion last year.
While unregulated gambling operations have clearly experienced a considerable growth over the past several years, regulated ones have seen a slight drop in sales. Turnover generated by operators that have been licensed by the local Gambling Authority amounted to SEK17.1 billion in 2016, down SEK17.26 billion in 2012.
The provision of gambling services in Sweden is mostly controlled by the local monopoly – Svenska Spel. However, it has been for years now that international operators have been providing their online gaming and betting products to local gambling customers. Despite operating without a license, it cannot be said that they have done so illegally, as a significant amount of legal fuzziness currently reigns over the country’s gambling landscape.
However, the legal status quo is about to change as a probe into the state of Sweden’s gambling industry recommended the removal of the current monopoly system and the introduction of one that would allow interested international operators to apply for a license from Lotteriinspektionen and service Swedish players in a regulated iGaming environment.
The new regulatory regime may take effect from January 1, 2019, according to initial forecasts. It is believed that 90% of all Swedish online bettors and casino players will opt for regulated operations, turning their back on black market operators. The other 10% will be in danger of being preyed upon by black market operators that will try their best to draw clientele, without applying for licenses and thus spare themselves from taxes and other responsibilities that come with operations in regulated jurisdictions.
Online gaming and betting will not be the only services the new laws will focus on. As announced earlier this year, those will also encompass land-based and cruise ship casinos, lottery, betting, and more.
Once the new regulations come into effect, all licensed operators will be taxed at 18% on their gross revenue from Swedish players. It can be said that the tax rate is a reasonable one, particularly when compared to that of other recently regulated European countries, including Poland, which taxes operators on turnover, and the Czech Republic, which imposed a 35% tax on gross revenue.
