Swedish Audit Highlights Inefficiencies in Gambling Regulator’s Supervision
Riksrevisionen, the Swedish National Audit Office, has concluded that the country’s gambling regulator, Spelinspektionen, is not effectively supervising the Swedish gambling market. The audit outlines key areas for improvement, particularly in addressing gaps in enforcement and prioritization of tasks.
Ineffective Supervision of the Gambling Market
Riksrevisionen’s audit focused on Spelinspektionen’s oversight of Sweden’s gambling market since its re-regulation in 2019.
The audit found that Spelinspektionen’s supervision has not met the expectations set by the Swedish government and parliament.
The report highlighted that the authority has conducted too few inspections, struggled with prioritizing its tasks, and has not followed up sufficiently on its supervisory decisions.
Challenges in Enforcing the Gambling Act
One of the primary issues raised in the audit was the lack of clarity in Sweden’s Gambling Act, which has hampered Spelinspektionen’s efforts, particularly in tackling illegal gambling.
Claudia Gardberg Morner, Deputy Auditor General of Riksrevisionen, emphasized the importance of oversight in high-risk areas such as online gambling and betting: “Supervision of gambling that is associated with high risk is particularly important. This includes commercial online gambling and betting, which should be controlled much more.”
Resource Constraints and Task Overload
The audit also pointed out that Spelinspektionen has faced resource limitations, which have hindered its ability to carry out effective supervision.
The authority has been tasked with additional responsibilities, such as handling licenses and permits, without receiving corresponding increases in resources.
As a result, supervisory efforts have been deprioritized.
Hedvig Tängdén, Project Leader for the audit, stressed the need for Spelinspektionen to adopt a more systematic approach:
“In this situation, it is particularly important that the supervisory resources are used where they bring the most benefit.”
Spelinspektionen’s Response and Future Plans
Spelinspektionen has welcomed the findings of the audit but noted that several issues are awaiting court decisions, which are expected to influence its operations.
The regulator has also received increased budget funds for 2024, which will be instrumental in further developing its supervisory processes.
Camilla Rosenberg, Director General of Spelinspektionen, responded to the audit by stating, “We welcome the National Audit Office’s review and since the re-regulation have carried out ongoing change work and still have work to do.”
She further acknowledged the intense six years following the re-regulation, noting that the authority is working to streamline its processes and improve risk assessments.
Recommendations for Improvement
Riksrevisionen’s report provided six key recommendations, split between the Swedish government and Spelinspektionen, to address the identified shortcomings.
The government has been advised to ensure that the gambling authority has sufficient resources for effective supervision, clarify the scope of the Gambling Act, and provide reliable information to the parliament regarding the effectiveness of the regulator’s actions.
For Spelinspektionen, the audit recommends developing a more robust system for planning and managing supervisory activities, increasing the scope of inspections in both licensed and unlicensed markets, and improving methods for ensuring that identified deficiencies are corrected.