Sweden’s newly-regulated gaming market booming
Since Sweden set it online gambling market in motion again around two months ago and the Swedish Gambling Authority (Spelinspektionen) embraced over 60 live gambling operators by granting them licences, including LeoVegas, the market seem to continue to grow significantly.
In the meantime 13 more live gaming operators have become licence holders.
Modern Problems Require Modern Solutions
What ruled before the 1st January 2019 in Sweden was a state monopoly, so to say.
Swedish customers were being accepted by unlicensed live gaming operators, and they did not go through any proper legal channels. In 2018, for Sweden’s $2.5 billion coming from gambling market, 29% was creditable to foreign gambling sites. In the year before, the number was 24%.
Thanks to the new regulations, Sweden will have more control over the market.
What surprised the iGaming circles was the pace at which Spelinspektionen was giving away its licences. The regulatory body seemed to be handing permissions far and wide, and while live casino operators were happy, there were some skeptics. And the latter’s theories are now coming true, more or less.
With the re-regulation of the market, a number of new, stricter rules will be imposed on live operators. To begin with, operators will have to pay tax at a rate of 18% of their profits from Swedish customers. Tax collections will be monitored by the Swedish government.
Secondly, licence-holders will have to protect clients from excessive gambling. To illustrate, monitoring of each individual player is required, and if need be, the live casino operator will have to intervene and help them to limit the amount they deposit. Additionally, bonuses can be offered only to players visiting the site for the first time.
With such rigorous rules, Patrik Hofbauer, Svenska Spel CEO, does not expect all 73 operators to keep their licences in the long run. “Things will fall into place in the coming one to three years. I find it hard to believe there will be 70 companies in the future.”