A new report from the National Audit Office (NAO) suggests that the Spelinspektionen is falling short of properly regulating gaming in Sweden. Among other things, the report implied that the regulator isn’t conducting enough inspections.
The Spelinspektionen Should Bolster Its Efforts
Sweden introduced a licensing system in 2019, paving the way for a modern gaming market. Back then, the Spelinspektionen was tasked with supervising the sector and preventing gambling harm and fraud.
However, the NAO suggested that the Spelinspektionen has been conducting way too few inspections and failing to base its efforts on systematic risk analyses. Additionally, the body criticized the Spelinspektionen for not conducting follow-up inspections to confirm whether identified shortcomings have been addressed. According to the assessment, the authority has so far conducted a follow-up inspection only once.
The NAO highlighted the potentially dangerous nature of gambling, saying that the sector should be better regulated. In addition, the office noted that Sweden should intensify its efforts against the black market.
In addition to the black market, the government must clarify its gambling rules in order to deal with an emerging gray market and review the scope of application of the Gambling Act.
The NAO attributed Spelinspektionen’s laxity to suboptimal resource allocation. Additionally, the former body admitted that the regulator has been dealing with new tasks and failing to keep up. Because of that, the audit office suggested that the government should provide the Spelinspektionen with the resources it needs to bolster its efforts.
BOS Says Dealing with the Gray Market Is Crucial
The Swedish Trade Association for Online Gambling (BOS) also chimed in, expressing support for the NAO’s recommendations. The association was especially concerned about the gray market, which has been made possible by the Gambling Act’s scope of application, which does not classify all unlicensed gambling companies as illegal.
For context, unlicensed operators that offer games in the English language and use the Euro as currency are technically legal. Only those that offer games in the Swedish language, accept Swedish currency and actively target the local market without a license are considered illegal.
Gustaf Hoffstedt, BOS’ secretary general, noted that this system allows unlicensed gray market operators to cannibalize the regulated industry. Because of that, the organization supported an expansion of the Gambling Act’s scope of application.
In this way, it would become generally illegal for gambling companies that lack a Swedish gambling license to accept Swedish gambling consumers, and as a consequence these companies must geoblock Sweden.
Gustaf Hoffstedt, secretary general, BOS
Hoffstedt concluded that the NAO’s recommendations are, therefore, welcome.
The Spelinspektionen Welcomed the Assessment
The Spelinspektionen also welcomed the NAO’s assessment and admitted that there is a lot to do. However, the body noted that it has been working hard during the past few years and has been dealing with new legislation and new tasks.
The regulator thanked the government for the extra funding in 2024, emphasizing that the extra resources are critical to its efforts.
For 2025, the Spelinspektionen plans to prioritize streamlining processes, routines and system support, as well as risk analyses and assessments. The regulator has also made organizational changes that will further support its regulatory efforts.
