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The Swedish Gaming Authority (Spelinspektionen) has written to payment service providers (PSPs) warning them not to do business with unlicensed gambling operators targeting the country’s regulated igaming market.
In the letter, the regulator warned that facilitating payments to and from unlicensed operators puts Swedish consumers at risk by allowing them to play on sites that do not adhere to the country’s consumer protection rules established by country’s Gaming Act, which came into force on January 1st of this year.
“Payment service providers operating in the gaming market cannot transfer bets or winnings to and from unlicensed gaming companies, which contribute to the increased likelihood of money laundering, social damages and unfair competition,” explained Patrik Gustavsson, Spelinspektionen Head of Operations.
“Unregulated gambling also has serious consequences for society, for example in form of lost tax revenue and increased vulnerability for problem gamblers,” stated Gustavsson in the letter.
The regulator added that unlicensed gaming companies do not have access to Spelpaus system to opt-out of all regulated gambling, which means they do not have information about whether a player is opted out. By facilitating financial transactions with unlicensed operators, payment service providers risk committing the offence of promoting unlicensed gambling while also jeopardising the wellbeing of consumers.
Despite the various issues experienced by licensees, the re-regulation of the Swedish market has succeeded in significantly cutting revenue from unlicensed gambling. According to recent reports published by Spelinspektionen, around 91 per cent of bookmakers revenue in Sweden was generated via licensed operators.
