The Swedish iGaming Market: How to Run a Successful Operation While Complying with Regulatory Limitations

In Sweden, it is one of the most difficult IgAming regulation systems, but if the operator chooses the right partner-supplier who uses the technology to enrich the game gambling skills, including in the criteria for the restrictions on the part of the regulator, this is worth it.

As a huge and vibrant bazaar with valuable players, the field is attractive, but not everyone has the ability to achieve great success in this field. We will introduce the current situation, normative grounds, advertising standards and almost everything else about the Swedish Igaming market.

Table of Contents

Current iGaming Market in Sweden

The Swedish Igaming bazaar is vaguely growing: in 2017, the GGR was 52 billion euros, while in 2024 monitoring it will reach 169 billion euros (source). At the end of 2028, it is predicted to reach a peak of 215 billion euros.

The same can be said about the number of players. For example, in 2022, the number of players in Sweden will increase - to 72% compared to 58% registered in 2018 (source).

In terms of taxes, the total - revenue from gambling uses a tax rate of 18% on gambling appearances. As a result, in 2021, 720 million euros will be obtained from gambling, after deducting gambling tax, corporate tax and dividends. It is responsible for the transfer of all kinds of gambling offer appearances, covering lotteries, sports fees and casino games.

Online Gambling Legislation in Sweden

Sweden belongs to a number of strictly regulated igaming-markets. SpelInspektionen, still famous as the Swedish Gambling Authority (SGA), has been observing the regulation of all gambling in the Nordic country since January 2019. This institution wants to take effective measures aimed at maintaining a balanced, faithful and fantastic market of gambling. In particular, attention is paid to limit non-adult achievement and problem gambling by players, which has a high possibility of negative social effects of gambling.

SpelInspektionen controls all kinds of categories 3: online games and books, municipal monopolies, casinos and ATMs, as well as lotteries and bingo. From the point of view of market factions, the largest share is occupied by online casinos, followed by sports fees (including horses) and lotteries.

Gambling laws and regulations:

• Swedish Gambling Act (2018: 1138);
• Swedish Gambling Tax Act (2018: 1139);
• Ordinance on Gambling (2018: 1467)
• Standards and Joint Opinions issued by the Swedish Gaming Authority
• Recently, major amendments to the Swedish Gaming Act have been proposed, which will come into force from 1 April 2024. This aims to further strengthen the protection of buyers' rights. Operators will now have to obtain prior written consent for gambling over the phone and will be granted access to financial and welfare-related customer information to combat excessive gambling. The amendments also address crimes under money laundering law and level the penalties for operators.

These legal changes follow the introduction of supplier licenses on 1 July and new enforcement options for Spelinspektionen. The government also proposes to increase the gaming tax rate from 18% to 22% of gross gaming revenue by July 2024. Supporters of this proposal basically say that the gambling market has stabilized since the start of the regulatory initiative in 2019. This will save 90% of the sewerage even amid the increased tax on gross gaming revenue.

On the contrary, the Online Gambling Industry Association (BOS) states that in line with the results of a special survey carried out in the first quarter of 2023, the actual GGR rate is 77% (for the entire Swedish gambling industry), 72% (for the Swedish iGaming sector) and 84% for sports betting in particular. The increase in GGR tax, combined with strict legal commitments resulting in unnecessary treatment of customers, gives a competitive advantage to unlicensed operators.

In line with the proposed tax increase and the 90% sewerage target, the Swedish Gambling Authority will develop a new strategy to combat illegal gambling activities. The survey will investigate whether online games target Swedish consumers, taking into account in particular:

• The use of PSPs registered in Sweden or used primarily by Swedish customers;
• Application of Swedish electronic identification for personality testing purposes;
• The iGaming operator or its subsidiaries will market in Swedish.

Advertising Rules for Gambling in Sweden

In Sweden, gambling and betting in all forms are recognized, and its advertisements are also recognized, but as with all other things, the Swedish gambling law has strict standards. According to the marketing rules, Sweden can advertise only approved games and lotteries. The marketing promotion of gambling companies is monitored by the Hallå Konsumer nationwide information service coordinated by the Swedish Conservation Agency. Gambling advertising guidelines are "modest". In particular, do not target those under the age of 18, or who are decisively refused to participate in gambling, or who are recognized as gambling addiction.

Before announcing a gambling website in Sweden, you need to follow the government's request. For Swedis h-approved sports betting sites or casinos, it is necessary to meet the specific aspects including the following:

• Use of Top Valude Maine. SE
• Transactions with Swedish currency
• Display all information in Swedish
• Enabling Customer Helpline by Swedish

Speaking of promotional prizes, Licensei can only provide or give bonus offers when a player first participates in a License game (welcome bonus). Considering that the prize itself is specifically defined as "gambling or similar economic catalysts", the ability to sell promotions and bonuses is very limited. Swedish gaming authorities have imposed heavy fines for operators that violate the prize rules. (Especially about LeoVegas and ATG in 2021).

It is obliged to observe the requirements of sel f-exclusion services such as Spelpaus. se and display the regulatory SpelinspeKTIONEN logo.

As of 2022, gambling ads in traditional media have decreased by 15 % compared to 2021. Specifically, in 2022 it reduced € 4 billion to 3. 4 billion euros.

Advertisements for online casinos (30 %) and sports betting (28 %) are still top. In September 2022, a remarkable change occurred. Swedish gambling regulatory authorities did not allow online slot machines to auto play mode.

Recently, the Swedish Rixdam Congress Cultural Committee has rejected proposals to introduce strict advertising regulations with hig h-risk gambling products.

The committee's views are described in a report on gambling reform bills aimed at minimizing harm and strengthening distribution routes.

The government initially plans to ban hig h-risk gambling advertisements between 06:00 and 21:00.

However, the official version of the law published by the government has decided not to introduce ban. Instead, gambling ads must be "modified modified".

Preferences of Swedish Online Gamblers

Last year (July 2023), a report on the Swedish online gambler habits was published based on the survey conducted by the Swedish Gaming Bureau (SpelinspeKtionen). The result was very interesting:

• 14 % perform online gambling at least once a week.
• 31 % perform online gambling once in the quarter.
• 50%of players only participate in one kind of online game.
• Men do online gambling about twice (42%) of women.

Sweden's solid economy and high disposable income have also contributed significantly to the expansion of the online gambling market. The high disposable income encourages participation in leisure activities including Igaming. In addition, Sweden's cultural gambling is also accepted as entertainment, further supporting market growth.

Popular Games and Sports to Bet on in Sweden

In the same survey, the 2018 survey revealed the latest information on Swedish gamblers. Their preference in casino games and sports is very clear:

• Lottery and numeric games are the most common forms of online gambling, and 60 % have previously played lottery and numeric games.
• Horse racing and other sports betting are 2nd, 36%, respectively. Considering the profits of casinos and sports Igaming, sports betting accounts for 49%of the total GGY.
• 20 % plays casino games such as slot machines.
• 11 % prefer bingo and 7 % prefer poker.

In Sweden, Esports has been increasing in recent years. According to the Computer Sports Federation, Sweden is led by China, the United States, Germany and the United Kingdom. From such an indicator, this niche field is indispensable for Nordic sports clubs.

Ways To Operate Successfully in Sweden Even with the Regulatory Limitations

In consideration of strict legal requests, only the welcome prices are suggested, and the precedent is that almost all the license operators in the market have the same content or access to actually guide in Sweden, operators. You need to own a powerful platform, a casino and a supplier sports book. Equivalent suppliers need to improve the quality of betting and provide unique features that help attract and maintain players. Delasport is focusing on applying the knowledge obtained from the bookmaker's work and creating a 10S function:

• And my sports book sets an important screen for sports-gamblers. They can only see what they want to see from the beginning, as they flowing on a diet similar to the Wizard.
• My event builder prepares more personalization and gives the player a personal action opportunity.
• Metajack pots are all options available by operators, and you can save huge, small victory with different providers. It has the ability to get used to all these IRGE casinos and is especially reflected through the booster brand.
• If BET is a fresh and creative function that allows gamblers to knit a certain amount of monitoring, they essentially automate up to seven alternatives.
• TOT O-POT (Scheduled to appear soon) -The innovative function of sports betting allows player's emotions to diversify and gain a large jackpot. It is completely localized, adjusted in cooperation with the operator brand, including network and local mode, applied to all sports.

These are only one example of any functions that continue to develop and introduce so that Derrasports can stand out in each market.

The Future of Gambling in Sweden

A licensed operator can gain a large market share by proposing the appropriate product and offer to the player. Price constraints are reasonable cases faced by all license operators. However, a deeper contradiction is the possibility that businesses will stand out. If the operator prefers to stand out for the biggest total price, the victory is guaranteed to the operator. For example, it is unknown what the Future Igaming is waiting for, as the composition has changed every day, such as the shortly introduced official system (2023), which was introduced in July last year. The fact that Sweden's bazaar continues to grow is a more player, so it is obliged to freeze in an ambitious market for serious operators.

In Conclusion

As Sweden is in the direction of gambling industries, regulatory authorities play an important role in forming the future. The abandonment of advertising regulations, proposals for the gambling law, and discussions on the ongoing tax increase, etc., indicated a balance between the development of the competitive market and the provision of consumer protection.

If you are looking for a reliable and experienced partner to enter this exciting market, please contact the Derrasport. Delasport offers the latest sportsbook solution in Sweden, as an operator, a sportsbook that supports the doubl e-digit margin by the industry's best traders and risk managers, a personalized player, a unique player in real time. You can use beds and many other services. < SPAN> As the Sweden is in the direction of the gambling industry, regulatory authorities play an important role in forming the future. The abandonment of advertising regulations, proposals for the gambling law, and discussions on the ongoing tax increase, etc., indicated a balance between the development of the competitive market and the provision of consumer protection.