The Swedish government has decided on regulation changes including an obligation for payment service providers to disclose certain information to the Swedish Gambling Authority (“SGA”). This to exclude unlicensed gambling providers from the Swedish gambling market. Furthermore, the government proposes in a memorandum, that the penalty fee for violations of the Money Laundering Act committed by a gambling provider, be adjusted so that the fee can amount to the same maximum amount as for violations of the Swedish Gambling Act.
In a previous LegalNews, we have written about the government's proposal in the bill 2021/22:242 A strengthened gambling regulation (Sw) and bill 2022/23:33 Measures to ensure a healthy and safe gambling market (Sw), containing amendments to the Swedish gambling legislation that entered into force on July 1, 2023. In connection with these amendments entering into force, the government has also decided on regulation changes (Sw: “förordningsändringar”), which also entered into force on July 1, 2023. The changes to the regulations mean, among other things, that payment service providers will be obliged to disclose information used when mediating stakes or winnings to or from gambling providers that do not have a Swedish gambling license to the SGA.
According to the government, the amendment should enable a more efficient system for blocking payments through a shared responsibility between the SGA and the payment service providers, to exclude unlicensed gambling providers who, in violation of the Swedish Gambling Act, offer gambling to Swedish consumers in the Swedish gambling market.
On June 19, the government published memorandum FI2023/02022 An adjusted penalty fee for violations of the Money Laundering Act and a written requirement for telemarketing sales of gambling services (Sw). The memorandum proposes that the penalty fee for violations of the Money Laundering Act committed by a gambling provider should be adjusted so that the penalty fee reflects the penalty fees for violations of the Swedish Gambling Act. Currently, the penalty fee for violations of the Money Laundering Act for gambling providers is lower than the penalty fee for violation of the Gambling Act, meaning that the proposal intends to harmonize the penalty fees for gambling providers.
In the memorandum, it is also proposed that a written requirement be introduced for telemarketing sales of gambling services. The requirement is proposed to be introduced through an amendment to the Swedish Gambling Act, and include requirements on certain information and formalities for telemarketing sales of gambling services (i.e. games for money). An agreement concerning gambling services entered into by telephone sales shall not be deemed to have been concluded until the consumer accepts the offer in writing after the call has ended. An agreement that has not been entered into in accordance with the written requirement is proposed to be invalid.
All proposals according to the memorandum are suggested to enter into force on April 1, 2024.
The regulatory changes that have now entered into force are further measures from the government's side to strengthen the protection of gambling consumers and combating illegal gambling activities. Furthermore, the government has proposed that the SGA receive increased funding in the spring budget bill to have the possibility of more active supervision. Additionally, the SGA and the Financial Supervisory Authority have been tasked with strengthening the cooperation between the authorities in the work to combat illegal gambling activities.
We regularly follow developments in the gambling market. You are welcome to contact us if you have any questions about the regulations.
The article in Swedish
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