Online casinos accepting players from Sweden

Online casino players and other remote bettors in Sweden are now some of the most well-informed and best-protected gamblers in the world.

The Gambling Act (2018:1138) and Gambling Ordinance (2018:1475) went into effect on January 1, 2019, under the watchful eye of the Swedish Gambling Authority (SGA). The regulator was formerly known as Lotteriinspektionen and has now changed their name to Spelinspektionen (game inspection) to better reflect their mission.

Prior to January 1, 2019, the entire betting and gambling industry in Sweden was run by state monopolies. Svenska Spel controlled sports betting, lotteries, poker, and bingo. AB Trav och Galopp (ATG) offered online horse racing games. Online casino gambling was not authorized.

Both entities were granted licenses under the new regime in the first round of approvals that saw 16 licenses granted in November.

Svenska Spel will still control land-based gaming such as that found in their subsidiary Casino Cosmopol operations in Stockholm, Malmö, Gothenburg, and Solna, as well as the more than 400 "restaurant casinos" like those operated by Cherry AB.

ATG now competes on the open market and has inked deals with Evolution Gaming,  NetEnt, and Yggdrasil in efforts to ensure one of Sweden's largest gaming operators remains relevant. AGT is owned by the Swedish Trotting Association and the Swedish Jockey Club. One of ATG's main reasons for existence has been to guarantee long-term financial stability for thoroughbred and trotting racing in the country.

Online lotteries, synthetic lotteries, and poker, as well as computer generated casino games and live dealer streams, are now handled by commercial operators. There is no requirement for an operator to be based in or have offices in Sweden. However, Chapter 16, Article 2 states that the licensee's gambling system should be located in Sweden.

After nearly a decade and a half of inquiry, planning, and preparation, the Gambling Act was approved by the Swedish parliament, Riksdagen, on June 7, 2018. The government began taking applications for online gambling licenses in August. By year's end, there were nearly 90 online applications on file. When the new year opened, 60 of those licenses had been awarded.

New regulations for operators serving the Swedish market

Responsible gambling is front and center in the law. Responsible marketing practices including bonus restrictions also play a large part in the scheme. Online operators will be taxed equally whether the business is based in the country or overseas.

On the surface, there are three main points the regulatory framework delivers on. However, the underlying specifics, general advice, and directions are quite clear about what is expected of operators and what is demanded of them by the Swedish Gambling Authority.

1. Players must be at least 18 years of age. All vulnerable players must be protected.
2. Marketing material must reflect the realistic possibilities of winning and be presented in a moderate way
3. For-profit operations must pay an 18% tax

The government sets out the basis and purpose of a regulated market in the following: 

• Common and sustainable rules
• A licensing system
• Consumer protection
• Good security
• Competition and competitive neutrality
• Secure tax revenues
• A system of sanctions for license holders and those outside the licensing system

Access Control: Underage gambling and vulnerable persons

Chapter 14, Section 2 states that gambling games cannot be offered if it isn't possible to verify that a player is at least 18 years old. Gambling systems must have a function to verify age.

Player financial transactions must be kept on record for at least 12 months. Operators are to give players the greatest insights possible into their gambling behavior. Measures can include models to illustrate player behavior and to follow up on any time limits or bet limits a player chooses.

In order to be allowed to gamble, players must set limits on the length of login sessions as well as total deposits. Players have to be able to limit time and money spent gambling each day, week, and month in order to gamble online.

Players will receive clear, regular, and varied notification of their wins and losses, as well as how long they have spent logged in. Players need to acknowledge receipt of this awareness.

The player is the only one who can set these limits.

Temporary and permanent self-exclusion options are mandatory. Permanent exclusions can be no briefer than 12 months. A so-called "panic button" must be provided for players to make an emergency 24-hour self-exclusion.

Players can access Spelpaus.se to turn off all real money gaming from sites that require registration.

Players can still access offshore casinos that do not offer the protections granted by the Gambling Act. No immediate mandatory internet service provider (ISP) bans are found in the law by our reading.

It's unclear if a 'blacklist' has been created (any gambling site not licensed) or if payment transactions to unlicensed casinos will be blocked, although the authority can order site blocking and may require ISPs to display a message to users when they attempt to enter a gaming site that is not licensed.

Marketing restrictions

Operators are responsible for all marketing of their product. All messaging must have a degree of moderation to it, the offers must be clear, and the advertised product must be fair.

The Consumer Ombudsman was keen to test the moderation rules (which appear under different regulations in The Lotteries Act) and sued one instant cashout casino in December 2018, for using phrases such as "...play for millions without registration...profit off the bank in five minutes...Bet Now!" as well as, "You can take home the millions".

Players can probably still expect to see some unlicensed casinos and their affiliated marketing partners breach the law with unreasonable and 'radical' claims that are not in line with realistic chances of winning.

Bonuses and Promotions

Operators are only allowed to offer a bonus the very first time a player participates in any of their offered games. No further credits, stakes, reload bonuses, or other incentives to attract deposits are allowed. The purpose for this restriction would seem to be that the years of reports leading up to the drafts and final law showed that promotions can attract and retain players, some of whom may already exhibit unhealthy gambling behaviors, according to a KPMG report on the law (PDF).

The sign-up bonus can only be single-stage, not multi-tiered (1st, 2nd, 3rd deposit bonuses, etc). Tournaments cannot be offered. Loyalty points, VIP rewards, etc., can no longer be given to Swedish players (at licensed casinos).

Divisions of Gambling Market and Taxation

Three sectors of the gambling market in Sweden

• Online gambling and sportsbetting
• Land-based, government casinos and token machines
• Public benefit gambling such as bingo halls and some lotteries

Taxation

All licensed operators will pay a tax of 18% on profits generated from the Swedish marketplace. Non-profit gambling will remain tax-free for operators.

Players' profits and winnings at licensed casinos are not taxable. However, winnings from unlicensed offshore casinos are subject to taxation.

The SGA was founded in 1995 and has operated with about 50 employees and managers. That number is expected to increase by about half again as new behavioral and systems scientists, legal advisers, and economists are added to the rolls to handle the authority's new responsibilities.

Online Gambling in Sweden FAQ

Does the Gambling Act comply with Eu standards such as the Treaty on the Functioning of the European Union (TFEU)?

Most observers say it does. The proof is in the pudding with five dozen public companies signing onto the new regime.

The Lotteries Act's restrictions on advertising have been affirmed by the European Court of Justice (ECJ) as far back as 2010.

Why is the Swedish market regulated?

With the breaking up of state monopolies, it can no longer be argued that online gambling regulation in Sweden is designed to protect the profits of Svenska Spel and AGT. Consumer protection and federal revenues from open market taxation can now be justified.

• Player safety and self-control
• Transparency
• Free trade - Equal opportunity for private and state operators
• Swedish and foreign companies are now licensed in Sweden rather than Malta, Gibraltar, or other foreign jurisdictions

Where can I find a list of licensed online gaming sites in Sweden?

The Gambling Inspectorate maintains a list of approved licensees:

https://www.spelinspektionen.se/licensansokan/bolag-med-spellicens/

Can I still play at an online casino that isn't licensed in Sweden?

Yes, at least for now. Regulators have the authority to order payment blocking as well as internet site blocking. If financial barriers arise, you may have to wait some time for your winnings to be processed. The State's dilemma is in balancing the free will and desires of citizens with player protections, especially for vulnerable individuals. We expect the first, and possibly only actions will be to instruct internet service providers to provide an onscreen pop-up informing players they are attempting to visit an unlicensed site.

Will I be taxed on my winnings?

No. As long as you play at a licensed gaming site, your winnings will remain tax-free. However, you will be obligated to report and pay taxes on winnings from an unlicensed entity.

I already have accounts at LeoVegas, Casino Cruise, and other sites. Will I be eligible for welcome bonuses?

Probably. As of January 1, 2019, all players are considered "new". This is in making the new bonus restrictions fair for all. The first time you log in and deposit to play, you are legally allowed to claim a welcome bonus, even if you had an account under the casino's MGA or another license. However, bonuses are "a discount or similar financial incentive that is directly linked to gambling activity" and each operator is free to offer or restrict such incentives.

Can I cash in my VIP points from last year?

Probably not. All Swedish players are considered new players under the law.

Is there a limit on how much casinos can offer in welcome bonuses?

No, and yes. The value of the bonus will be limited only by the casino as long as it is a once off, single offer. They won't be able to offer bonuses on subsequent deposits. The law sets no limits on the value of the first deposit bonus, but like all other forms of advertising, it should be 'moderate'.

Can I still play at SvenskaSpel and AGT?

Yes. The only difference is that the former online monopolies now have to compete on the open market. AGT will offer online casino games in addition to race betting. Look for NetEnt, Yggdrasil, and Evolution Gaming live streaming casino games just like anywhere else.

If you held a poker account at Svenska Spel you can still play there. You can also open new accounts with other licensed poker sites.

I had money in Svenska Spel but it doesn't appear in my account now. Why?

You now need two accounts - one for lottery games and another for sports and casino, poker, bingo, etc. Your money could be on your Tur account. You won't be able to transfer funds between the two accounts - but - you can accomplish this with a bank transfer, which should only take a day or two each way.

In the meantime, you can make a new deposit to play on Svenska Spel Sport & Casino.

Are online lottery sales legal in Sweden?

Yes. Several lottery retailers and synthetic lotteries, i.e. sites that allow betting on the outcomes of lotteries, have been licensed under the new law.

Do I need BankID to play online?

The law doesn't require operators to offer BankID deposits and withdrawals. For those who have used BankID, your information should still be in the casino's system. If not, it only takes a moment to verify yourself with BankID. Some casinos offer immediate payouts to your bank account via Trustly's Pay N Play if you use BankID.

Will casinos lower my odds in order to pay their taxes on profits?

They shouldn't. All games and casinos must be accredited. The games have to be shown to not be manipulatable by operators. However, game providers have the ability to set the RTP, or theoretical return to player percentage of their games prior to vending. In the UK, RTP must be plainly stated. That is not the case in most other European jurisdictions. This has lead to some providers offering games to the UK market at a higher RTP setting than those offered through their Malta Gaming Authority licenses. While not found in the law, one could assume that the RTP will be the same under Swedish license as it was under Malta Gaming Authority license.

Will I be limited on how much I can deposit or how long I can play?

Yes, but you will be the only one to set those limits. In fact, you won't be able to play for real money if you don't set daily, weekly, and monthly limits on time and total deposits.