SWEDEN Law and Practice Contributed by: Stefan Widmark, Hans Eriksson and Petter Larsson, Westerberg & Partners
4. Licensing and Regulatory Framework 4.1 Regulatory Authority
3.3 Definition of Land-Based Gambling The Swedish Gambling Act includes no legal defini- tion of land-based gambling; however, according to the legislative bill of the Gambling Act, land-based gambling is defined as games between a player and a gambling operator that take place in a physical set- ting. 3.4 Definition of Online Gambling According to Chapter 2, Section 1 of the Gambling Act, online gambling is defined as any form of gam- bling provided through electronic means of communi- cation and played by a player or multiple players and the party that provides the gambling. 3.5 Key Offences Under Chapter 19, Section 1 of the Gambling Act, anyone that intentionally or through gross negligence provides unauthorised gambling services or gam- bling services without a licence may be found guilty of unlawful gambling operations (unlawful gambling). Further, and under Chapter 19, Section 2 of the Gambling Act, anyone that intentionally or by way of gross negligence aids and abets participation in such unlawful gambling may be found guilty of promotion of unlawful gambling. For both crimes, there will not be any sentencing for minor infractions. According to Chapter 19, Section 4 of the Gam- bling Act, anyone who takes inappropriate actions to manipulate the outcome of a game that is subject to licence requirements under the Gambling Act may be found guilty of cheating. 3.6 Penalties for Unlawful Gambling Unlawful gambling, aiding and abetting of unlawful gambling and cheating may entail fines or imprison- ment for up to two years. In serious cases, sentences of up to six years’ imprisonment could be handed down. When assessing whether a case of cheating is serious, particular attention is paid to whether the offence was conducted as part of a crime that was: • carried out systematically; • widespread; or • of a particularly dangerous nature.
The SGA is the authority appointed to grant gambling licences and acts as the regulator in relation to com- pliance with the Gambling Act, the Gambling Ordi- nance and the regulations issued by the SGA. As regards marketing of gambling services, the Swed- ish Consumer Agency conducts separate supervision, and the Swedish Tax Agency is the supervising author- ity when it comes to payment of the relevant taxes. 4.2 Regulatory Approach The Gambling Act is drafted as a framework regulation which, in turn, mandates the SGA to issue regulations on matters including responsible gambling require- ments, annual fees, technical requirements, and the specific games covered under each licence category, etc. Due to the nature of this area of law, combined with the SGA’s limited practice of issuing regulations on many fundamental matters, Swedish gambling law has become heavily reliant on case law. In general, and in line with most Swedish authorities, the SGA’s supervisory approach is entirely reactionary as the regulator does not issue preliminary decisions on specific matters. However, the growing number of published guidance documents on, for example, AML and RG issues, may, in time, help to reduce the num- ber of supervisory interventions required. 4.3 Types of Licences The following main types of licences exist in Sweden, with the final five available to commercial operators. • Licences reserved for the state monopoly ‒ these cover land-based slot machines and lotteries. • Licences for games reserved for publicly benefi- cial entities (such as charities) ‒ these games can include land-based bingo, lotteries and pool bet- ting at horse racing tracks. • Licences for land-based commercial gambling ‒ these licences include specific casino games, card-based tournaments and goods gambling machines provided in amusement parks or estab- lishments that hold a licence to serve alcohol.
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