Date: 30.08.2024

by Sebastian Warowny

Sweden Empowers Gambling Inspectorate to Combat Excessive Online Gambling

The Swedish government has granted Spelinspektionen, the Gambling Inspectorate, additional powers to directly intervene in cases of excessive online gambling. As part of this new authority, Spelinspektionen will now have the ability to modify the action plans of license holders, replacing their previous supervisory role with more direct control.

New Powers for Spelinspektionen

The Swedish government has enhanced the authority of the Gambling Inspectorate, Spelinspektionen, allowing it to take a more proactive role in preventing excessive online gambling. The Inspectorate is now authorized to set specific “requirements on the content of license holders’ action plans to counter excessive gambling.”

This move, described by the government as a “sharper tool,” is designed to ensure that online gambling operators maintain consistent safeguards and adhere to their duty of care towards customers.

Addressing Inconsistencies in Action Plans

Effective from 1 October, Spelinspektionen will be able to modify or change the action plans of individual licensees concerning their duty of care requirements. This development follows the Inspectorate’s reports of significant variations in how different licensees addressed the protection of customers from excessive gambling.

The Gambling Act mandates that Swedish online gambling operators must have an action plan in place, outlining their procedures and protocols for customer care. However, discrepancies in these plans prompted the Inspectorate to seek greater authority to impose specific content requirements.

Strengthening Consumer Protection

The decision to grant these additional powers was part of a broader government effort to tighten regulations against gambling problems and strengthen consumer protection.

Minister of Financial Markets Niklas Wykman emphasized the importance of this move, stating, “There must be order in the gaming market. The new requirement should lead to more detailed action plans, making it clear how gambling companies take responsibility for counteracting gambling-related risks.”

By enabling Spelinspektionen to directly influence the content of action plans, the government aims to enhance the effectiveness of measures designed to protect consumers from the negative impacts of gambling.

Upcoming Ban on Credit-Related Gambling Transactions

In conjunction with these new powers, the Swedish government is also preparing to implement further measures to control gambling-related risks. A memorandum, Fi2024/00442, has authorized the government to impose a blanket ban on all credit-type gambling transactions, which will take effect on April 1, 2025.

This ban will cover loan agreements, overdraft facilities, and deferred payments, adding another layer of protection for consumers. The combination of these initiatives reflects Sweden’s commitment to creating a safer and more regulated online gambling environment.