Last year witnessed a significant transformation within the Swedish casino industry with the establishment of the Spelinspektionen and the implementation of the Swedish gambling license. Previously, the majority of casinos operating in the Swedish market held licenses from either the Malta Gaming Authority (MGA) or the UK Gambling Commission (UKGC). However, as per the law, all casinos seeking to advertise their services to Swedish players are now required to possess the Swedish gambling license. This new regulation has been a game-changer for the industry, ensuring a safer and more regulated environment for Swedish players.
The decision of Sweden to establish its own gambling law was largely prompted by the significant increase in gambling addiction within the country. With a lack of clear regulations regarding the advertising of gambling or the limits on bonuses and other offers that players could receive from online casinos, many were enticed to gamble beyond their means. This led to a pressing need for a comprehensive framework that would ensure responsible gambling practices and protect vulnerable individuals from excessive financial strains.
Online casinos following the Swedish gaming license.
Since last year, all online casinos in Sweden that aim to target Swedish players have been compelled to apply for a Swedish gaming license. This license incurs costs of up to 700,000 kronor, depending on the markets the casino serves its players. Furthermore, every gaming company with the Swedish gaming license is required to pay 18% tax to the Swedish government. To cater to the Swedish market, online casinos must adhere to these regulations and fulfill their financial obligations to the state.
In addition to this, all licensed casinos are required by law to offer Spelpaus on their websites. Spelpaus is a national-level self-exclusion system. Through this system, players can voluntarily block themselves from all types of gambling, including both online casinos and physical games like horse racing and lottery.
Other casino licenses
What other casino licenses are available on the market? As mentioned earlier, there are MGA and UKGC, and the third one is Curacao. Casinos outside Spelinspektionen are usually referred to as casinos without a Swedish license. It may sound a little intimidating, but it is completely legal and equally safe to play at a casino without a Swedish license.
MGA
As previously mentioned, the majority of Swedish online casinos were only licensed by MGA before the Swedish gaming license arrived, making it one of the best licenses in the industry. With MGA, you can feel secure as a player, and casinos with an MGA license offer a similar range of games and payment methods as those found at casinos under Spelinspektionen. MGA is the license that most casinos in Europe utilize.
UKGC
The UKGC is a license primarily targeted towards casinos in England, Wales, Scotland, and Northern Ireland. It stands as one of the strictest licenses available, and prior to being granted to a casino, numerous investigations must be conducted to ensure compliance with all requirements. Consequently, it is an exceedingly secure license that instills a sense of confidence and safety.
Curacao
If you choose to play at a Curacao-licensed casino, there are a few things you should know. Firstly, it's important to note that Curacao is the only license operating outside of the EU and EEA. As a Swedish player, you will be required to pay taxes on all winnings over 100 kronor. The tax rate is set at a hefty 30%. Obtaining a Curacao license is relatively simple for casinos, as the scrutiny process is not as strict. While Curacao is not a bad license, it is not as stringent compared to other alternatives.
Which license is the best?
The choice of which casino to play at and under which license is entirely up to you. It is highly advisable for Swedish players to opt for a casino with a Swedish gaming license, but it is neither illegal nor dangerous to play at a casino without a Swedish license. There are pros and cons to all licenses, and ultimately, you have to decide what you consider most valuable to invest in. You have the freedom to make your own decision based on your preferences and priorities.