The Government of Sweden has come up with a proposal that will oversee a change in the gambling legislation. This proposal ensures that every gaming operator dealing with gambling software gets a licence of operation from the Swedish Gambling Authority (SGA).
Upon the approval of this proposal, the amendment to the Swedish Gambling Act will be effective. This will be in operation from 1st July 2023. According to the Swedish Government, this is one of the attempts to clamp down on illegal gambling that might happen in future.
This is in the hope that the introduction of licences on gambling software products will result in higher accountability by the providers of gambling software programs.
Moreover, the introduction of gaming software program licences will affect a number of actors in the game. They include the companies that manufacture these gambling programs and those that provide, change and install these software products that provide interfaces for online gaming.
This is according to the Swedish Gaming Act Ch. 7 and Ch. 8. All these participants in the online gaming world must apply for gaming software program licences.
Source: Fastercasinos
Understanding the Online Gaming Permits.
The new Swedish gaming law consists of six kinds of different licences. Besides these licences, there are possession permits for slot machines and licences for slot machines. This is in line with the Slot Machine Act.
Let’s look at the different types of online gambling software licences in Sweden.
The State Game Permit
This is where an online casino operator gets a licence that has a direct or indirect link to a state limited liability company.
State gambling licence covers operations of given types of lotteries, games that are on slot machines, and casino games that are in a casino. The permit covers games at casinos, including slot games and certain lotteries. Additionally, this license can only be accessed by an indirectly or directly owned state limited liability establishment.
The Public Benefit Gaming licence
This is a licence only available to an association that is non-profit. Well-known religious communities whose purpose is to promote the good of the public can also get this permit.
It is a licence that offers games that benefit the public and is in Ch. 6 of the Gaming Act (2018:1138). The permit may allow given types of lotteries. Some of these games that are allowed under this kind of licence are as follows;
- Bingo
- Postcode Lottery
- Local poll games on horses
The Online Games and Betting Licence
This licence is open for application by operators offering betting services in Sweden. The Ch. 8 of the Gambling Act (2018:1138) mainly covers online betting on casino games, online bingo and computer-simulated slot games.
Licence for Land-based Commercial Games
In Sweden, this kind of licence is open for applications from gambling operators offering land-based commercial games. The commercial online gaming licence, Ch.9 of the Gaming Act (2018:1138), covers the provision of casino games offered outside a casino, card games, and commodity gaming machines.
Permit for gambling on ships in international traffic
All gaming operators offering gambling on ships in international traffic are welcome to fill out the application for this licence. This permit is related to casino games and cash and cash machines.
Source: Swedish goverment
How to apply for your permit as an online casino gambling operator in Sweden
The gambling software permits will start being in operation from the 1st of July 2023. However, the licence application starts on the first day of March 2023. It is important to note that all the documentation regarding the permit application must be written in Swedish. This means that all translations to other languages must be accurate.
Furthermore, the licence will be issued for a specific period, valid for a minimum of five years. The licence is wide and covers several online gambling activities. This is because it will be difficult and stressful to apply for a permit for each type of activity or gambling software on offer. This also implies there is no need to request an updated permit if there is a change in activities or gambling software. A list of the legal entities has been provided on the Swedish Gambling Authority website.
Once you start the application process, you will receive a notice letting you know your diary number. This is the number you use while paying the application fees. It is also the number you give when you contact the Swedish Gambling Authority.
After you pay the application fee, then the application process can proceed. Once the Swedish Gaming Authority issues the licence, the holder then pays up for the licence supervision fee. Directions for the application are available via the application forms and web service. Supplements and additions can be sent via e-mail. Nevertheless, applicants are required to mark the supplement to clearly identify the documents the supplement is related to. Additionally, it’s essential to include the diary number for the application when submitting supplements.
Application for Licence Change
Modifications on licences must be made through the application form, not via the web service. Only the following license types are eligible for license change.
- Commercial online gaming and betting
- State casino and lottery
- Community lottery
Licence application charges
Once you decide to apply for any of the mentioned licences in Sweden, there are charges that you will pay to finish up the process. Moreover, payment of fees must be in Swedish Kronor.
The first one is the application fee. This fee allows for your application process to proceed. Within Sweden, you can pay the fee through Bankgiro 5050-0875. If you are outside Sweden, you can pay through ISBAN SE25 1200 0000 1010 50810 Swift DABASESX.
There is a diary number you will receive from the Swedish Gaming Authority after paying the application or change fee. This is the number you will enter while making the licence payment. The number is also useful in contacting the licencing authority about your application.
Next is the registration fee, which is the second charge. This is the fee in accordance with Ch. 11 Section 2 of the Swedish Gambling Act (2018:1138). It is for gambling agent application and notification of a change in accordance with Ch. 11 Section 3 of the Gaming Act. This gambling agent fee is SEK 800.
The third charge is the supervisory fee. This is a fixed and mandatory fee that the Swedish Gaming Authority collects from a licence holder. It covers the supervision activities of the SGA in accordance with the Gaming Act (2018:1138).
Conclusion
Actors who provide, manufacture, install or change game software used in Sweden must acquire the relevant licences needed for their operations. It will be impossible for any gambling entity to operate without the required permit.
Before the 1st of July 2023, gambling operators must ensure that they have the necessary documents and funds needed to acquire a licence. Consequently, they can submit an application and receive the necessary permits before the 1st of July 2023.
In the long run, the Swedish Gaming Authority has to make sure that the gambling market in Sweden is reliable, safe, and legal. The authority was created to supervise the interest and activities of all parties participating in the online gaming industry. These include organisations and platforms offering these online gaming activities.
