Compliance Updates
Is Political Tension Changing Sweden’s Gambling Laws?
Sweden has had a hectic year in the political world, with the coronavirus, the government drama, and backlash from the online gaming industry.
Sweden started in 2019 with a prime minister that barely made it into office. Facing a pandemic and then heavy restrictions of gambling, he quickly began to lose support. It finally came to a head when his party lost faith in him and voted no confidence. Löfven ended up resigning, stating it was because the government needed someone whose party would back them. Out of a job for only a month, he was re-elected by Parliament and chose to come back. Though Löfven has said, he would resign again if not able to pass the budget through parliament in autumn.
It’s not only Löfven who has been the target of heavy criticism. One of his closest allies, Ardalan Shekarabi, the minister for Consumer Affairs, has had his share of criticism as well. This stems from his work to regulate the gambling industry in the country. The primary criticism is connected to the fact that the government has interests in two gambling companies, Svenska Spel and ATG. Svenska Spel is fully owned and controlled by the government, and ATG is partially owned. This creates a very sensitive situation because they compete with private gambling companies. Svenska Spel has an unprecedented position among all the betting companies in the country, largely due to their many exclusive products. Furthermore, ATG enjoys a monopoly on all forms of horse racing which is extremely popular in Sweden. Hundreds of millions SEK is wagered every month in their exclusive horse betting products, and the monopoly enables ATG an exclusive opportunity to cross promote and expose their users to casino games and sports betting.
Strict rules proves hard to follow
On another note, there are a lot of rules in place that frustrates the gambling operators. One of the many rules in the new regulation package has to do with bonus offers. The bonus offers can not exceed the value of 100 SEK (about €10) and is only a one time offer per license and customer. Since many companies operate several casinos under the same license, customer confusion arises when they are ineligible to receive a bonus from a casino that appears “new” to them. In order to make sense of where to actually find a new casino bonus, it presupposes that the customer is fully informed about all the casinos and the license from which they operate. For many people it demands an extreme amount of research even though there are websites such as bastacasinobonus.se which tries to assist in this process.
There have been many cases where a licensed operator has been found guilty of breaching the current bonus rules. ATG and Svenska Spel have repeatedly done so themselves, but gotten out of it with warnings or minor fines. Other companies though have been fined amounts up to 100 million SEK in seemingly small instances such as when a refer-a-friend program was deemed illegal.
Recently the SGA (Swedish Gambling Association) lost a court case against Betsson Nordic. SGA claimed the gambling company was offering illegal bonuses and incentives. SGA tried to fine over SEK 20 million(£1.6m), saying it added costs over the years. The court, however, ruled in favour of Betsson Nordic, saying the fine lacked legal grounds. Usually though, the betting companies has little success contesting the rulings.
Sweden’s Government Facing Heavy Criticism
The Swedish Trade Association for Online Gambling, or BOS (Branschföreningen för Onlinespel), represents gambling companies and game developers that target Swedish consumers. With members, BOS promotes integrity and responsibility within the industry, a safe gaming market, and shares knowledge of the industry. They also consider social protection to be given priority.
BOS has called out to the government to end the recently extended temporary restrictions following criticism of constraints by the Committee on the Constitution. As time continues on, more and more organisations and people advocate for the lift in the temporary laws. The Committee on the Constitution has the task of preparing matters concerning the Constitution. It also examines the work of the Government and government officials and is to inform the Riksdag of the results.
BOS also believes the government wanted to introduce a new gambling bill to the Riksdag before the general election. Possible extending the already extended gambling laws. Löfven has said that they are not focusing on new bills at the moment, as the fragile government is taking priority.
So when will laws change?
With all the chaos, it is hard to say if there are any changes coming soon to Sweden. Things are constantly being talked about, and dates are being proposed. However, the only concrete dates we have are the temporary gambling restrictions being removed in November of this year.
Compliance Updates
Warren Jacobs joins BetComply board
BetComply, iGaming’s most trusted technical and regulatory compliance firm, has appointed experienced entrepreneur Warren Jacobs to its board as a non-executive director.
Jacobs has served as CEO of Betable Group since 2018, and is also chairman of ActiveWin Media, where he was previously managing director for a decade. He brings with him a strong reputation for scaling businesses, and has experience working for major brands including General Motors and Betfred.
He joins at a time BetComply is rapidly expanding its range of products and services, supporting partners across more than 40 regulated jurisdictions worldwide.
“We’re delighted to have Warren join the BetComply board. He brings with him a wealth of experience from more than a decade building iGaming businesses,” said Daniel Brookes, CEO of BetComply. “We’re now more than a year into the BetComply journey. Our team has grown quickly, and we’re supporting many of the fastest-growing companies in our sector across multiple regulated jurisdictions. With the addition of Warren’s guidance, we’ll be able to provide even better service to our partners going forward.”
Warren Jacbos, non-executive director at BetComply, added: “Working in the iGaming sector for more than a decade, it became extremely clear that world-class compliance expertise was in short supply. BetComply is solving this issue, by providing the trusted technical and regulatory compliance support businesses need to thrive. I’m honoured to join the board and help build upon this vision.”
Since BetComply was founded last year, it has rapidly grown its team to more than 20 people, creating a depth of iGaming compliance expertise unmatched in the industry.
Among its recent appointments was Loes Wetzer, who joined the company as operations director in August.
Compliance Updates
GCGRA Issues Warning Against Unlicensed Lottery and Gaming Operators
The General Commercial Gaming Regulatory Authority (GCGRA), the federal entity overseeing commercial gaming activities in the United Arab Emirates, issued a Consumer Advisory Notice warning UAE residents of the dangers of doing business or playing with unlicensed lottery and commercial gaming operators. Under the federal laws of the UAE, only lottery and commercial gaming operators approved by the GCGRA are permitted to operate.
Consumers who choose to play or do business with an unlicensed operator face significant risks, including financial loss, becoming the victims of cheating or fraud, having their personal data stolen or misused, increasing the risk of malware, phishing, or other cybersecurity threats, and being implicated in a regulatory or criminal investigation and the subsequent reputational damage.
The GCGRA has granted the sole lottery license to The Game LLC, which operates as The UAE Lottery. This is the only lottery license permitted under the GCGRA regulatory framework.
Additionally, the Federal Law by Decree establishing the GCGRA, permits certain preexisting lottery activities to continue. Within this framework, only Big Ticket and Dubai Duty Free – airport lotteries that have been operating for approximately 30 years – are authorised to continue operations under the supervision of the GCGRA. In accordance with the law, all other preexisting lotteries will not be considered for continued operations, and the GCGRA has ordered them to shut down.
Kevin Mullally, CEO of the GCGRA, said: “The GCGRA is committed to ensuring a safe and legal gaming environment in the UAE.”
He urged consumers to “Stay vigilant and informed, to protect yourself from the risks associated with illegal gaming. Your adherence to the law not only safeguards your personal and financial security but also upholds the integrity of our community. If you choose to play, do so only with licensed operators.”
Mr. Mullally said: “These unlicensed businesses have not had their technology or games independently evaluated for fairness or security. They are not required to act responsibly or incorporate basic consumer protection. They are not subject to advertising regulations and lack any oversight of their finances, including having reserves for prize payouts and complying with anti-money laundering laws. Consumers are strongly advised to avoid unlicensed operators to protect themselves from adverse consequences. Similarly, advertisers, payment processors, and other service providers that support these businesses risk sanctions and potential consequences affecting their ability to operate in the UAE.”
Compliance Updates
New Zealand Introduces Racing Act Changes to Extend TAB NZ Monopoly
New Zealand Racing Minister Winston Peters has announced the introduction of legislation to amend the Racing Industry Act 2020 which will extend TAB NZ’s current land-based monopoly for sports and racing betting to online.
The Racing Industry Act established TAB NZ for the purposes of funding the racing industry. It provides 90% of the racing industry’s revenue, which generates billions of dollars for the New Zealand economy and employs over 13,500 people.
“This legislation will enhance the long-term sustainability of New Zealand’s racing industry by making TAB NZ New Zealand’s sole provider for sports and race betting both on land and online,” said Mr Peters.
“Growing competition from offshore online betting operators poses a significant threat to the TAB NZ model.
“This change brings the model up-to-date with the current sports betting climate and will ensure the financial sustainability of the racing industry, as established in the Coalition Government’s Q4 Action Plan for New Zealand.”
The Bill makes a number of other changes to support the success of TAB NZ, including new oversight powers for the Minister to seek information from TAB NZ, and regulatory oversight of the prohibition on other operators.
“These oversight tools will ensure that TAB NZ can continue to deliver value for consumers and the racing industry, and to ensure that the ongoing viability of the industry,” Mr Peters said.
Other changes to the legislation include regulation-making powers for harm prevention and minimisation, and consumer protection, and removing the Point of Consumption Charge.
The Bill will be referred to the Governance and Administration Committee for a select committee process.
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