A new Swedish game team law that promised to bring big changes to the industry began on January 1, 2019. The Re-Regulation of the Gambling Market (or en omreglerad spelmarknad in Swedish), came into full legal effect, and will now impose a gross gambling revenue tax rate of 18%. For a casino to operate in the Swedish market, they will now be required to hold a valid Swedish gaming license. This new law will have a considerable effect not only on casinos but on the players themselves. It will also affect remote gambling operations, including poker, bingo, and sports bettors who will all be required to have the license.
Now, players must ensure that they are playing at casinos that comply with the law. Players can review reputable sources that are monitoring the law to find safe online casinos as mentioned here on casinoreviews.co.uk.
But it won’t just be people in Sweden that will feel the effects on the new game team law. What other countries can learn from the new Swedish law that re-regulates the gambling market?
Player Safety
Players in Sweden can now be assured that the casinos that they bet at are safe and secure. Every single gambling company that wants to operate in Sweden must have a Swedish gambling license. The new law may be able to block transactions between gamblers and unlicensed operators, so unsuspecting gamblers will never be tricked by someone who is operating outside of the law. In addition, ISPs (Internet service providers) will be required to set up warning messages for websites which offer unlicensed gambling. All of these new regulations will help provide players with a sense of assurance that they will receive the money they win. Other countries could take note of this and duplicate in their own countries to help protect their citizens who are playing online. When betting on shady and offshore games, players often have no recourse if they do not get their full payment. This game law can change that.
Safer, Global Casinos
Photo by Analise Benevides on Unsplash
With this new gaming license, the Swedish state now can ensure that the casinos and other gambling companies are fulfilling specific requirements. That gambling license can be issued to any international, qualified applicants who can help globalize their gambling market. Even though Sweden is a relatively small country, this new law will bring in new companies and new players. Other countries, especially ones with a relatively small gambling market, might be interested in a law like this because it helps to bring in companies that can deliver a high-quality gambling experience legally to their citizens.
No Taxes on Player Profits
As a player betting online, you will no longer have to pay any taxes on the winnings if they come from a gaming company with a valid Swedish gaming license. Instead, the gaming company will have to pay a revenue tax rate of 18% on all the money they make on the Swedish gambling market.
The attractive benefit of betters not having to pay taxes is likely to attract players who now won’t lose a big chunk of their earnings to taxes. Other countries might want to take notice because
Revenue Increases
Thanks to the 18% revenue tax rate, it is believed that Sweden could quickly become one of Europe’s largest regulated jurisdictions. According to data by Lotteriinspektionen, the portion of Sweden’s gambling market controlled by state-run operators generates about SEK17.07 billion ($1.8 US billion) in 2017. Meanwhile, unregulated operators working with local players generated SEK5.534 billion ($607.97 US million). Of course, since unregulated operators are not required to report revenue figures for tax purposes, it is extremely likely that the real figure is much higher. This means that Sweden will be taxing 18% of at least a 2.2 billion a year industry.
Currently, the 18% revenue rate is higher than the 15% gross gambling revenue tax rate in the UK but does remain lower than the 20% rate in nearby Denmark. Perhaps, with the increasing revenue, other countries might also be tempted to increase their own tax rates.
eSports Betting
Gambling countries across the world are looking for ways to attract younger generations. eSports and eSports better have become a popular way to draw in that younger clientele. Globally, eSports is a billion dollar industry, and saw a 38% annual growth from 2017 to 2018, according to market research firm Newzoo.
According to various online gambling companies, eSports could become one of the big success stories due to the re-regulation of Sweden’s online gambling market. Because of the booming eSports market right now, it seems to be an unstoppable revenue generator.
Currently, according to a report by Paypal and Superdata, Sweden is Europe’s second-biggest eSports market, with only Russia beating them out. The report states that the Swedish eSports market is worth roughly $31 US million due to tickets, products, sponsorships, and brand popularization activities. Russia’s eSports market is worth roughly $38 US million.
According to Business Insider, Sweden and Denmark have more eSport players than any other country. The report by Paypal also believes that the Swedish eSports market will continue to grow beyond 2019 when the European market is expected to reach its peak regarding audience and players.
All of these reports seem to indicate the possibility of a growing eSports better sector in Sweden under the regulatory regime. Other countries will have to find a way to top Sweden and attract the talent to participate in eSports betting in their own countries. Multiple operators have already confirmed that they would enter into Sweden’s re-regulated market with an eSports betting product, as well as their more traditional offering.
It can be speculated that other countries will see this growing market of eSports in Sweden and want a piece of that pie as well, and might consider ways to regulate their market as well.
As the law just recently went into effect, it is unclear what the impacts will have on Sweden and outside of Sweden. It is possible other countries might want to follow suit to increase revenues and see the positive influences.