Swedish Government to Strengthen Consumer Protection in Gambling Sector

To fortify consumer protection and combat criminal activities associated with gambling, the Swedish government presented a proposal to the parliament on December 19. 

Swedish Government Proposes Written Confirmation Requirement for Telephone Gambling Sales

One key aspect of the proposal is the introduction of a written confirmation requirement for telephone sales of gambling services. Under this proposal, consumers must provide written acceptance of an offer after the telephone conversation for the agreement to be deemed valid. This measure is designed to enhance protection for consumers, especially those vulnerable to the influence of telephone sales, such as individuals facing financial difficulties.

Niklas Wykman, the Minister for Financial Markets, emphasized the potential risks associated with gambling, stating: “Gambling poses a risk of developing gambling problems, leading to significant negative consequences for the individual, their families, and ultimately, society at large. It is unreasonable that telephone sales of gambling services are not subject to the same written confirmation requirement as other forms of telemarketing.”

To further bolster consumer protection in the gambling market, the proposal grants licensed gambling companies the right to access players’ personal data related to finance and health. This provision aims to empower operators to counteract excessive gambling and implement responsible gaming measures effectively.

Sweden Proposes Stricter Sanctions to Thwart Illegitimate Operators

In a bid to thwart illegitimate operators and prevent them from exploiting the gambling market, the government has suggested raising sanctions for gambling companies that violate anti-money laundering laws.

If approved, the proposed legislative changes are slated to take effect on April 1, 2024, signifying an important step towards fostering a more secure and responsible gambling environment in Sweden.

While these proposed changes aim to create a safer gambling landscape, they also coincide with a broader debate within Sweden’s gambling industry regarding a proposed increase of the GGR tax from 18% to 22%. 

Sweden’s online gambling association, Branschföreningen för Onlinespel (BOS), strongly opposes the government’s plan to increase the tax, stating that it would be a detrimental “Christmas present” to the black market. 

BOS argues that the timing is particularly unfortunate as more players are turning to unregulated, illegal operators, and the tax hike would further undermine legal market operators, according to Gustaf Hoffstedt, the general secretary of BOS. 

On the other hand, the Swedish gambling regulator, Spelinspektionen, responded to the government’s proposal to increase the GGR tax, expressing no substantial objections but emphasizing the need for careful monitoring of market developments. With the increase the Swedish government aims to boost fiscal revenues without significantly impacting companies or the overall tax base, and the proposal is expected to be presented to parliament in spring 2024, with potential implementation from July 1, 2024, pending approval.