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Sweden is Set to Finally Regulate its Online Gambling Market
- April 4, 2017 By Riley Wilson -
A year and a half ago, the Swedish government commissioned a thorough analysis of the local gambling market.
Led by Lotteriinspektionen Director General, Håkan Hallstedt, the review has finally been completed and its results could bring radical changes to the local market.
Ending the State Monopoly
First of all, the results suggest the implementation of a more liberal licensing system, which means Svenska Spel, the state-owned company, is likely to lose its monopoly over online gambling. This will open the doors for all interested operators to enter the Swedish market.
A new licensing system will require a new legal framework, which would regulate all forms of online gambling and impose strict sanctions on all those operating outside the law.
The review also suggested an 18% tax on gross gaming revenue, which is a bit higher than the one in the UK (15%), but still lower than the 20% rate in the neighbouring Denmark. Bearing that in mind, the proposed tax rate can be called a reasonable one and will not be an obstacle for operators interested in entering the Swedish market.
The First Reactions
We didn’t have to wait long for the reaction to the review. Kindred Group stated the new licensing system should be adopted as soon as possible and without any hesitation. Such positive attitude towards the proposal is a clear indication the Malta-based company will be applying for a license in the near future.
The demand for online gambling services in the Scandinavian region is high, and more and more operators are focusing their attention on the markets out there.
Apart from major names in the industry, we can expect a number of locally based operators to compete on the market that has all the prerequisites to become a highly competitive one.
Although the exact date when the new regulation will come into force, is still unknown, it is likely to become effective as from January 1, 2019. One thing is certain – such move will bring more options to players and will protect them online.