Gambling at casinos without a Swedish license is on the rise - despite tough regulations

In recent years, there have been many innovations in the Swedish gambling market. In early 2019, we got a new gaming law and our own license. The Swedish gambling license is a receipt that the casino is safe to play at. Nevertheless, more and more Swedes have instead started to play at foreign casinos that are not as safe. How did this happen and why? We will try to find out in this article.

Channelling is decreasing – more people are playing at casinos without a Swedish licence

As we have already noted, it is becoming increasingly common for Swedes to switch to playing at foreign gaming companies. Gambling is also increasing in general, despite the fact that politicians have tried to limit it with various regulations. We believe that this development is due to the fact that government regulations are having the opposite effect. The best casino in Sweden, you find at pokerbloggare.se.

The Swedish gambling license

For a long time, the Swedish state has had a monopoly on gambling. The state-owned companies ATG and Svenska Spel were the only players on the Swedish gambling market. At least that was the way it was supposed to be, but in practice there were lots of foreign casinos in this unregulated market, which many Swedes gambled at. The government did not like this, partly because it meant that they were losing out on taxpayers' money, and partly because they could not guarantee the safety of Swedish players when they played on these sites.

In 2019, however, we got our own national gaming licence here in Sweden. All casinos must have such a license to operate in the Swedish gambling market. However, in order for a casino to obtain a Swedish licence, it must comply with a number of rules. Here is a quick summary:

The casino must pay a profit tax of 18%. However, you as a player do not have to pay any tax.
The casino has to pay a one-off fee for the licence, a licence fee.
The gambling company must be moderate in its marketing.
The casino must have a game break.
The casino is given more responsibility for its players. Staff must try to prevent players from developing problem gambling.
Players can only receive one bonus.
There must be self-testing and gambling limits at the casino.
More and more Swedes play at casinos without a Swedish licence

In April 2020, Copenhagen Economics published a study. In it, they review the Swedish gambling market since the Swedish gambling license came into force. With the help of interviews, statistics from gambling sites, and more, they got a reliable picture of how we Swedes gamble. They write that before the Swedish gambling licence came into force, channelling was at about 100%. In other words, almost all Swedes played at Swedish casinos. However, since the Swedish gambling licence was introduced, we Swedes have changed our gambling behaviour. The researchers conclude that around 28% of Swedes play at casinos without a Swedish licence. They also suggested that this figure would only increase. In other words, more and more Swedes would start playing at foreign casinos.

The reason for this was that the players in the study described that they saw Swedish and foreign casinos as equal, both in terms of quality and security. The players then chose the gambling companies that had the best games and bonus offers. When it comes to bonuses, the Swedish gambling sites cannot compete on the same terms anymore. So it becomes natural for players to choose a foreign casino instead.

Risks of playing at a casino without a Swedish license

We can therefore conclude that gambling on casinos without a Swedish licence is increasing. The question then becomes whether this is a positive or a negative thing. As we see it, it is certainly good that Swedes have the opportunity to play at foreign casinos, because it gives you more sites to choose from. With a bit of luck, you might find one that suits you perfectly. At the same time, playing at foreign casinos is not as safe. Among other things, there is a greater risk that you will encounter a rogue casino. You can read more about the risks of playing at a foreign casino below.

Dishonest casinos

As we mentioned, you may end up at a rogue casino when you leave the Swedish gambling market. The Swedish Gambling Inspectorate has strict requirements for its casinos, but some other gambling licenses are not nearly as difficult to obtain. The Curaçao license, for example, is both cheaper and less strict. That said, the vast majority of foreign casinos are both safe and reputable. Just be careful and only play at well-established casinos.

Taxes

When you play at an unlicensed casino, you may also have to pay taxes on your winnings. The basic rule is that you must pay 30% tax on all winnings over €100. You must also remember to declare these winnings on your income tax return. Failure to do so may have legal consequences. You don't have to worry about that if you play at a Swedish casino.