Sweeping Consumer Protection Bill to Boost Swedish Gambling Law

In a major development, the Swedish government has recently presented a proposed gambling law designed to bolster consumer protections within the gambling sector. This initiative, endorsed by Spelinspektionen, Sweden's gambling regulator, holds several crucial provisions that seek to safeguard players and the industry as a whole.

Under the proposed law, gambling companies found in violation of the Money Laundering Act will face higher penalty fees. Currently, penalties for such violations are lower compared to those under the Gambling Act. This shift is aimed at deterring money laundering activities within the gambling industry.

Licensed operators will gain the right to access personal financial and health data of prospective customers. This measure intends to combat problem gambling by allowing operators to identify potential issues early on and offer appropriate assistance.

Consumers will be required to provide written confirmation before participating in telephone gambling, ensuring that they are fully aware of the implications of their actions.

Sweden's gambling industry is experiencing a series of regulatory changes. Supplier licenses were introduced on July 1, along with expanded enforcement powers for Spelinspektionen. Moreover, there is a proposal to increase the gambling tax from 18% to 22% of gross gaming revenue, though this is not expected to be implemented before July of the following year.

These legislative changes come at a time when growth in Sweden's regulated gambling market has stagnated. In the third quarter, gross gaming revenue saw a 0.6% year-on-year decline and remained flat compared to the previous quarter. Additionally, illegal gambling in the country has surged significantly since 2019, underscoring the need for stronger consumer protections and regulatory measures.