The Swedish Gambling Authority (SGA) regulates gaming in Sweden. Referred to as Spelinspektionen in Swedish, it issues licenses to internet casinos and other gambling sites.
The following guide covers the role of Spelinspektionen and discusses the process that SGA online casinos go through to gain licensing in this market.
Formation of Spelinspektionen
Before 2018, the government-owned Svenska Spel held a monopoly over Sweden’s online gaming market. Meanwhile, foreign operators couldn’t legally apply for an internet gaming license in the country.
This situation changed in June 2018 when the Swedish parliament passed the Swedish Gambling Act and the Swedish Gambling Tax Act. These laws collectively ended Svenska Spel’s monopoly and opened the market up to outside operators.
The acts also paved the way for the Swedish Gambling Authority. The SGA began accepting applications for internet casinos on January 1, 2019.
How do online casinos obtain an SGA license?
Those interested in applying for a Swedish online casino license can visit the relevant page on Spelinspektionen’s website. Here, applicants will find all necessary forms and information on the licensing process.
Prospective operators must submit an application for the gaming type they wish to offer. SGA online EU casinos must apply for a commercial online gaming license.
Available licenses and fees include:
- Commercial online gaming – SEK 400,000 ($46,000)
- Betting – SEK 400,000
- Combined online gaming and betting – SEK 700,000 ($80,000)
- Renewal of license – SEK 300,000 ($35,000)
- Change of license type – SEK 150,000 ($17,500)
Once an application is submitted, Spelinspektionen reviews it and decides whether to approve the operator. It also offers guidance through the application process for interested parties.
In addition to licensing fees, SGA online casinos must pay an 18% tax rate on income. The only exception is nonprofit activities, which aren’t subject to taxation.
Benefits of an SGA casino license
After its revamping in 2018, the Swedish Gambling Authority has received many applications for online casinos. The following advantages indicate why casinos are so interested in entering this market.
Prestige
The SGA has already established itself as a notable regulatory authority. It closely monitors the country’s internet gaming market to ensure that operators act responsibly.
This commitment to maintaining a quality market raises Spelinspektionen’s prestige, instilling more trust in an SGA license from the players’ perspective.
Lucrative market
With a population of 10.3 million, Sweden isn’t the world’s largest country. Nevertheless, it offers one of the most lucrative gaming markets.
Statistics show that Sweden is in the top 15 in per capita gambling. Therefore, operators may find plenty of value in the SEK 400,000 licensing fees.
Discount when combined with betting
Unfortunately, the SGA doesn’t roll gaming and betting into one license like certain jurisdictions do. However, it does offer a discount for those who purchase a combined license.
If approved, operators can receive a combination license for SEK 700,000. This deal cuts SEK 100,000 (approx. $12,000) off the cost of paying for betting and gaming licenses separately.
The Swedish Gambling Authority’s Functions
As per its website, Spelinspektionen’s main goal is to promote a “legal, safe, and reliable” gambling market for consumers. It also performs the following functions:
- Accepting applications and vetting operators.
- Collecting fees and taxes from licensees.
- Ensuring protection for problem gamblers.
- Requiring online casinos to undergo third-party testing for fair gaming.
- Preventing criminal activities in the market (e.g., money laundering).
- Responding to player complaints.
- Working to prevent unlicensed operators from serving Swedes.
Sweden was previously rife with unlicensed gaming sites. Many casinos ignored Svenska Spel’s monopoly and continued to accept Swedish players regardless.
Much of the purpose behind the Swedish Gambling Act is to reduce the number of unlicensed online casinos. The SGA works with law enforcement to keep unapproved sites out of the market.
Spelinspektionen’s reputation as a regulator
Launched in 2018, Spelinspektionen is relatively young among gambling authorities. Nevertheless, it has already established itself as one of the industry’s most notable regulators.
The Swedish Gambling Authority ensures that operators live up to its lofty standards. Spelinspektionen requires online casinos to watch out for problem gamblers, obtain game testing, and advertise responsibly.
Spelinspektionen is never afraid to take action against operators. In 2019, it leveled SEK 120 million ($12.5 million) worth of fines at gambling sites for various violations.
If anything, Spelinspektionen is too rigid in its protection of players. For example, it only allows gaming sites to offer a welcome bonus and no subsequent promotions.
This measure prevents operators from continually enticing players with numerous bonuses. However, it also keeps responsible gamblers from enjoying more bonus opportunities.
Weighing the pros and cons, the Swedish Gambling Authority is a premier licensing body. Its rigid policies mostly work in the market’s favor by minimizing problem gambling and boosting the jurisdiction’s reputation.
Can you trust SGA casinos?
SGA online casinos must live up to lofty standards for game testing, player protection, and preventing criminal activities. As a result, these gaming sites are trustworthy.
Of course, gamblers should never take anything for granted and need to perform due diligence, but they generally have nothing to worry about in this market.
Swedish online casinos must follow strict protocols or risk major fines. Operators must undergo a rigorous licensing process to gain entry into the Swedish market. The SGA does its best to ensure that only high-quality internet casinos serve Swedes.
