Gambling in Sweden: the Growth of Online Gambling in the Country in 2020-2021

The gambling business in Sweden had a powerful boon thanks to the enactment of the new legislation in January of this year. The changes affected the entire market environment, making it more attractive and profitable from the point of view of investors. Now, it is easier to get a license, launch your own online casino, and also become a sponsor of any sports event.

Historical Background

Gambling in Sweden has been popular since the 18th century. At that time, opened one of the first casinos in Europe called Ramlosa Brunn was opened in the country. The gambling establishment attracted wealthy merchants and manufacturers with its luxurious interiors and beautiful girls. The casino also had a wide range of solutions: poker, roulette, and other casino games.

The successful functioning of Swedish gambling was discontinued for almost a century. At the beginning of the 19th century, the church banned any entertainment events in the country, motivating such a decision with the deterioration in morals among church members.

In 1897, the local government authorised lottery conducting and gave this segment to the state-owned company Penninglotterietiet.

The launch of other gambling sectors with their subsequent monopolisation took place in the 20th century and at the beginning of the 21st. That is how the well-known companies Svenska Spel and Casino Cosmopol AB appeared. They were engaged in the organisation of a land-based business and until 2019, they remained the only brands in this segment.

New Legislation

Such a topic as the revision of the existing laws (many of them were adopted back in 1995-1999) and their harmonisation with the European law was discussed in Sweden over the past 5 years. The final point was the introduction of the Gambling Industry Act (January 1, 2019).

The division of the market into three independent areas turned out to be one of the fundamental changes:

• The competitive field, which is represented by land-based gambling establishments, as well as the online business and betting on the Web.
• The state industry. It was given to lottery companies, 50 + 1% of the shares of which belongs to the state. However, there are also private lottery operators as well.
• The sphere for public purposes. Private entrepreneurs also cannot invest in this area.

Some other important aspects of the gambling industry have also suffered changes:

1. Internet businesses and land-based companies are allowed to participate in sponsorships, post their logos on products, and advertise their services. The exception is products for minors.
2. The personal data of gamblers must be collected and protected in accordance with the European GDPR regulation.
3. Controlling agencies have tightened the rules for the quality control of gambling establishments.
4. Casino licenses have become available to foreign operators.

The Main Advantages of the New Law

The division of the market gave the go-ahead for foreign and local investors who had long been sizing up a promising industry. The European Union is completely satisfied with the renewed segment since it needed the creation of competitive business in Europe with a high profit from gambling.

As for the Swedish government, liberalisation was an excellent opportunity to boost the coffers. According to preliminary calculations, 15-20% of the gross income from casinos should be received. This result can be expected due to an increase in taxation for the turnover of the gambling business, which is now 18% of the earned profit.

Representatives of the country's tax service said that changes in legal aspects and the departure of grey enterprises have only improved the gambling industry. According to their estimates, in the future, the casino industry in Sweden will only grow, offering new opportunities for all market participants.

End consumers have also benefited since they got access to many modern virtual resources. These are online casinos, sports betting websites, live casinos, poker tournaments, and other solutions.

Licensing

The Swedish executive body, Lotteriinspektionen, deals with such issues as the registration and renewal of licenses. The document is issued for a period of 5 years, after which it can be extended. The regulator grants several types of permits.

Types and the Cost of Licenses

Those companies that want to be engaged in several types of gambling at once can receive a comprehensive license. For example, the cost of a permit for online betting and managing a virtual casino at the same time will cost 66 thousand euros.

The documentation package that needs to be sent to the supervisory body consists of a standard list of information. Basically, these are documents, which confirm the personal data of the applicant company, its financial guarantees, and the legitimacy of its activities. The usual response time does not exceed 15 working days.

Conclusion

2WinPower will help you to start your own business in Sweden or any other European country. We have been working in the international legal field for many years and are well-versed in all the features of the gambling sphere. Cooperating with us, you will get a working mechanism with a high margin and fast self-sufficiency.

The range of solutions from 2WinPower includes turnkey online casinos, the development of high-quality software for betting shops, and the introduction of highly profitable affiliate programs.

We also create online slot machines according to the wishes of customers. Our clients receive an original product with colourful graphics and well-thought-out gameplay. This is a great idea for new casinos that are planning to increase traffic.

Contact our specialists and get a personal consultation right now! With 2WinPower, profitable gambling business is absolutely real.

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