Non-licensed Casinos Start to Rule the Swedish Market
While casinos are getting popular every day, governments across the world want to put in the word about responsible gambling. Sweden’s move to regulate the casino industry though, has been met with a mixed response.
The governments’ stringent laws might end up doing more harm than good. For instance, the move to limit the player’s deposit online to around SEK 5,000 a week – or around $510 USD – might easily backfire, as more players look towards trying their luck out in unlicensed casinos.
The Swedish Gambling Act – Where does it Fail?
Enacted in 2019, the Swedish Gambling Act aimed to protect players. Players can opt for the self-suspension system to stop gambling addiction.
Additionally, if you are from Sweden‚ you don’t have to pay tax for your winnings in a licensed casino. Even then, unlicensed casinos in the Swedish market continue to rise. Here is why.
- Higher Tax Rate
The Swedish gambling act enforces an 18% annual tax cut from operators. Having a Swedish gambling license is not an investment that justifies this expense. As a result, most companies are not willing to pay.
- The licensing process is expensive.
The licensing fee and the annual tax cut is a considerable expense. Some smaller companies may not have enough financial strength to be able to afford this. The easiest thing they can do is to opt out of the licensing program.
- Regulatory requirements
When applying for a license, websites need to have a Swedish translation. Operators need to have a history of the user recorded, including user’s losses, profits, and so on.
They also have to include control systems that limit users’ losses and bet limits, apart from connecting the system to the Swedish Gambling Authority’s system. All these processes require time‚ money, and human resources.
Why are more players taking to non-licensed casinos?
While there are many restrictions enforced on casinos, the most disappointing for players is the restriction on bonuses. Licensed casinos can only offer one bonus per person. Everywhere else, you have access to a better range of bonuses and promotions – which make games more interesting.
There is also a law on a delay of three seconds between spins to slow down the user – which can adversely impact casino revenues. Plus, the strict deposit limits and a lack of variety when it comes to gaming.
To add to it, the Swedish government is also considering adding new restrictions to playing time – decisions that most from the gambling community isn’t welcoming.
On the other hand, unlicensed casinos do not have limits on bonuses or promotions. It is easier to register and players can continue to play as much as they want – without delays. High-spending players are thus looking at offshore sites to spend their time. There are about 30 choices currently to chose from.
Many of these foreign casino sites are regulated by governing bodies like The Malta Gaming Authority and trusted by many. Since it is also completely legal to play in these‚ for many Swedish players, unlicensed casinos are the obvious choice unfortunately.