In 2024, Sweden made big changes to its gambling rules.
With the goal of enhancing consumer safety, these updates aim to make gambling safer and more transparent for players and operators.
And the new rules cover everything from online gambling to land-based casinos.
Here’s a clear explanation of the latest changes, including the results of recent inspections and what they mean for the future of gambling in Sweden.
Key Takeaways
- Paf International, LeoEx Ltd, and Burstit Ltd passed Sweden’s regulatory checks, confirming that they meet the country’s strict rules.
- Sweden introduced new rules banning credit card use for gambling and checking criminal records to make the industry safer.
- Physical casinos like Casino Cosmopol are closing, with new rules aimed at stopping money laundering.
Successful Checks for Paf and Other Companies
Sweden’s gambling authority, Spelinspektionen, checked up on three companies—Paf International plc, LeoEx Ltd, and Burstit Ltd—during the summer of 2024.
These inspections are part of Sweden’s rules that require gambling companies to renew their certifications, testing, and security checks every year.
After the review, Spelinspektionen announced that all three companies met the required standards, allowing them to continue operating in Sweden.
This outcome is especially good news for Paf International, a company based in Ã…land, Finland.
For its part, Paf has been active in the gambling market for many years.
In 2023, they reported a 7% increase in revenue, reaching €177.1 million ($191.7 million), which also led to record profits.
The inspection covered important areas like how deposits are managed, how often players log in, and how well their systems work.
Spelinspektionen concluded that everything was in order, showing their commitment to keeping the gambling market in Sweden safe and well-regulated.
New Rules for Safer Gambling: Credit Card Ban and Criminal Checks
Recently, Sweden has introduced new rules to address concerns about money issues and illegal activities in the gambling industry.
The most important changes are banning credit cards for gambling and allowing Spelinspektionen to access criminal records.
Credit Card Ban
As of 21 May 2024, Sweden banned using credit cards for gambling to stop people from going into debt.
At first, this rule focused on lotteries, but now it applies to all gambling that requires a license in the country.
This is similar to the rules in other European countries, such as Germany, the UK, and Spain, which also have similar bans.
The Swedish Trade Association for Online Gambling (BOS) disagreed with the ban, saying that it might limit some people’s choices, such as older adults, who may use credit cards responsibly.
However, they agree that gambling with borrowed money is risky.
Criminal Record Checks
From 1 July 2024, the Swedish government allowed Spelinspektionen to access criminal records during licensing checks.
This is to prevent criminals from getting involved in the gambling industry.
Swedish Minister for Financial Markets, Niklas Wykman, said this change is essential for fighting money laundering and match-fixing.
Similar checks are already in place in other countries, like the UK, where applying for a gambling license requires a background check.
Closing Casino Cosmopol and Tougher Anti-Money Laundering Rules
One of the biggest changes in Sweden’s gambling scene is the closure of Casino Cosmopol’s remaining locations in Stockholm, Gothenburg, and Malmö.
This decision marks the end of state-run physical casinos in Sweden, as the last location closed in 2024.
In fact, the action follows concerns that the casino was being used for money laundering.
Casino Closure
A report from December 2023 showed the following: Casino Cosmopol was involved in activities that required Spelinspektionen to step in and prevent money laundering.
And the issues included customers making large deposits that did not match their reported income, along with suspicious patterns of withdrawals.
For example, one customer deposited SEK 45,000 multiple times weekly despite earning only SEK 30,000.
In response, Spelinspektionen fined Casino Cosmopol SEK 2 million for not following the rules.
Tighter Money Laundering Rules
In addition to closing Casino Cosmopol, Sweden’s gambling regulator suggested 21 changes to laws aimed at stopping money laundering.
Essentially, these changes include a requirement for gambling companies to report any transactions that look suspicious.
The new rules will start between 1 July 2025 and 1 January 2026, giving companies time to adjust.
It’s hard to predict how this decision will affect Sweden’s gambling market, but it shows a shift towards online gambling and tighter control over the industry.
What These Changes Mean for Sweden’s Gambling Future
With these new rules, the way gambling works in Sweden is changing.
The new rules, like the credit card ban and background checks, aim to create a safer environment for gambling.
At the same time, closing physical casinos shows a shift in focus towards online gaming.
Other countries may examine Sweden’s approach to determine whether it is effective and decide whether to follow similar steps.
Though Sweden’s new rules strongly commit to keeping its gambling industry safe, responsible, and fair.
As 2024 continues, gambling companies and players must adapt to these new rules.
This ensures that Sweden’s gambling market remains one of Europe’s safest and most regulated.
As we’ve discussed today, Sweden is setting a new standard for the future of gambling in the region by focusing on responsible practices.
