The aim of the Swedish gambling regulation that entered into force in 2019 was to create a safe and fair gambling market. It also aims to protect consumers and combat gambling-related problems such as gambling addiction and money laundering. The Swedish Gambling Authority is responsible for monitoring and controlling licensed operators. All gambling companies wishing to operate on the Swedish market must meet strict requirements in order to maintain their license.

Despite these regulations, many players still choose to turn to comparison sites like nätcasinoutanlicens.com to find casinos without a Swedish license. This is mainly because the Swedish regulation has certain weaknesses that allow players around the country to play outside the regulated market.

The weaknesses of the Swedish gambling regulation

One of the main weaknesses of Swedish regulation is that it does not fully prevent players from gambling at unlicensed casinos in Sweden. Gambling companies that do not want to pay the high gambling tax of 18% or do not want to comply with the strict rules simply choose not to apply for a Swedish license. As a result, many players can still choose to play at these online casinos even though they are not under the supervision of Spelinspektionen.

Many operators who do not want to be part of the Swedish market have chosen to continue to allow Swedish players to play on their sites. They do not have a Swedish license, but are often licensed in Curaçao or Malta, for example. This means that gambling on these sites is not subject to the same high level of protection as required by the Swedish rules. This can be problematic for consumer safety and protection.

Why do some players choose casinos without a Swedish license?

There are several reasons why some players choose to play at casinos without a Swedish license:

• Freedom and flexibility. Many players feel that the Swedish regulations are too strict, with their restrictions on betting limits and gaming tools such as Spelpaus. Foreign casinos offer players greater freedom by allowing them to play without these restrictions. This appeals to players who want more control over their gaming experience.
• More generous bonuses. Swedish casinos are limited when it comes to bonuses and only offer a welcome bonus. Foreign casinos can offer more and bigger bonuses, and they often have loyalty programs and ongoing promotions. This makes them more attractive to many players who want to get a little extra for their money.
• No self-exclusion via Spelpaus. Some players have signed up to Spelpaus, which is a service for self-exclusion from gambling at Swedish casinos. However, many of the suspended players want to continue playing during their suspension period. Since Spelpaus only applies to casinos with a Swedish license, these players turn to foreign casinos where they can continue playing.
• A wider range of games. In some cases, players are looking for games that aren’t available at UK casinos. Many international gambling sites have a wider range of games and more options to choose from, so they are more appealing to players who want more choice.
• More payment options. Some players prefer to use payment methods such as cryptocurrency, which is not allowed at Swedish casinos. Therefore, they are forced to turn to foreign casinos that have such options.

The risks of casinos without a Swedish license

Despite the benefits of playing at casinos without a Swedish license, there are also several major risks:

• Reduced consumer protection. Foreign casinos rarely have the same strong consumer protection as the Swedish alternatives. This means that individual players run a higher risk of being affected by gambling problems. Nor are there tools such as Spelpaus that can make it easy to turn yourself off from all gambling.
• Risks related to financial and personal data. Swedish casinos have to follow strict rules to protect players’ financial and personal data. On the other hand, foreign casinos may have weaker safeguards, especially those licensed in countries with less rigorous requirements. This means that there is a higher risk of fraud or data breaches where players’ data may fall into the wrong hands.
• The tax issue. Winnings from gambling at EU/EEA casinos are tax-free for Swedish players. However, winnings from casinos outside this area are taxable. This means that players must pay tax and declare their winnings to the Swedish Tax Agency.
• The lack of Swedish supervision. If problems arise with a casino without a Swedish license, Swedish authorities cannot intervene. This applies whether it’s a matter of lost winnings, unfair rules or something else. This means that Swedish players who play on such gambling sites are in a vulnerable position and may have difficulty getting justice if problems arise.

Comparison between casinos with and without a Swedish license

The table below illustrates the differences between casinos with and without a Swedish license.

The impact of Swedish gambling regulation on the iGaming industry

Swedish gambling regulation has had a significant impact on the gambling industry. Since the introduction of the regulation, the channeling rate has increased from around 50% to 85-90%. This means that the proportion of players who gamble with gaming companies licensed in Sweden has increased significantly. It is of course gratifying that a greater proportion of gambling is taking place under more controlled conditions, and this is entirely in line with the aim of protecting consumers.

However, the strict rules have also led to reduced revenues for gambling companies. This effect is partly due to the high gambling tax of 18% and partly due to the increased costs incurred as gambling companies work to comply with the new rules. As a result, some gambling companies have chosen to leave the Swedish market altogether.

Why it is still possible to play at casinos without a Swedish license

It is still possible to play at casinos without a Swedish license because these gambling sites are based abroad and thus not covered by Swedish legislation. The Swedish Gambling Authority (Spelinspektionen) finds it difficult to curb this as their power to regulate only covers casinos licensed in Sweden. Many players go to foreign casinos to escape the strict rules, get more and bigger bonuses, avoid deposit limits and more. Ultimately, the gambling sites regulated in the country are not able to match this offer.

The future of Swedish gambling regulation

Based on the weaknesses of Swedish gambling regulation and its effects on the iGaming industry, it is difficult to determine where we are heading. One thing that is certain, however, is that the gambling market in Sweden faces an uncertain future. Some experts believe that more players will seek out foreign casinos if Swedish regulations continue to become increasingly strict. Others believe that the Swedish Gambling Authority’s work to promote safe and responsible gambling will make Swedish casinos more attractive to players.

New rules and guidelines within the EU may also affect how and where players choose to gamble, and how Swedish regulation develops.

Concluding thoughts

Swedish gambling regulation has strengthened consumer protection and improved security for the country’s players, but it also has its shortcomings. Many players are turning to casinos without a Swedish license in search of greater freedom, more bonuses and a wider range of games. However, there are several risks associated with this development, such as weakened consumer protection, tax issues and insecure payment methods. This debate is likely to continue, and future changes in regulations and gambling habits will shape the Swedish gambling market going forward.

This article was written in cooperation with Nätcasinoutanlicens