Measures proposed by the Swedish gambling regulator for operators to prevent unlicensed gaming

(AsiaGameHub) –   Spelinspektionen has released a report detailing what it describes as actionable measures that gambling operators can implement on their own to bar players based in Sweden.

Sweden.- The Swedish gambling regulator Spelinspektionen has submitted a report to the government featuring new proposals on how online gambling companies without a Swedish licence can stop users located in Sweden from accessing their services. The development comes in light of planned amendments to the Swedish Gambling Act that will revise the definition of illegal gambling.

Investigator Marcus Isgren, who led a review of gambling legislation last year, put forward a recommendation in September that the Gambling Act be revised to remove the “so-called directional criterion”. Regarded as a loophole by Spelinspektionen, this rule states that only online gaming services specifically targeted at the Swedish market are subject to the law.

This clause has created enforcement difficulties for the Swedish gambling regulator, which has previously only been able to take action against unlicensed operators if it can find proof of them targeting Swedish players, for instance, through use of the Swedish language or listing Swedish krona as an accepted payment method.

Isgren’s proposal would replace this requirement with a new participant-focused criterion: that a gaming service is deemed to be offered in Sweden if people located within the country are able to access and use it.

To support this proposed change, Spelinspektionen’s new report outlines a series of measures that it says gambling companies can roll out independently to effectively block Swedish players. The regulator noted the report is technology-neutral, designed to give the government a clear overview of the kinds of steps that can be used to reduce unlicensed gambling in Sweden.

In addition to geo-blocking, other technical barriers are recommended to block access from Sweden, such as stop messages. Access may also be denied if the user’s geographical location cannot be determined or if technical workarounds are used to bypass the barriers, the report added.

Meanwhile, Sweden should not be listed as a selectable country option when registering an account, and sign-up requests should be rejected if Swedish address details, postal code or telephone number with the +46 country code are provided. The regulator also proposes the blocking of bank transfers and card payments from institutions that requireSwedish e-ID as well as payments to Swedish bank accounts, which carry the SE country code in their IBAN.

Terms of contract could also explicitly exclude individuals located in Sweden, while marketing channels that are likely to reach potential gamblers in Sweden should be avoided, it said.

The Swedish regulator stated that the measures should be applied consistently and cover both new and already active gambling accounts. Relying on terms of contract alone without accompanying technical barriers should not be considered a sufficient approach, it added.